How creating a customer profile can help your marketing campaigns
What is a customer profile?
A customer profile is a short record of your customers’ traits, interests, pain points, and buying habits, used to guide better marketing.
- It gathers demographic, psychographic, behavioral, and geographic data in one place.
- It can cover both individual buyers and whole companies.
- It helps you target the right people with the right message.
Building an effective marketing campaign can be tricky. Marketers must weigh many factors, such as goals, the target audience, and the platform they will use.
Of these factors, knowing the audience matters most. After all, these are the people the campaign aims to reach. So marketers use a few methods to understand them better. One of the best methods is building a customer profile.
In fact, a customer profile, sometimes called a consumer profile, lists the interests, pain points, buying patterns, and demographics of a business’s customers. For example, you can store these details in a document or in a tool like customer relationship management (CRM) software.
Still, a good customer profile holds more than names and addresses. Ideally, it also includes job titles, salary range, sex, and education. As a result, it supports sharper customer segmentation.
The data used in a customer profile falls into a few groups. Here is a closer look at each one.
Demographic data
First, these are the basic data used in most customer profiles. For example, they cover:
- Age
- Sex
- Job title
- Education
- Family status
Psychographic data
Data in this group covers the reasons behind consumers’ purchasing decisions. [1] So it explains why people buy, not just what they buy. It includes:
- Lifestyle
- Goals
- Motivations
- Pain points
- Habits
- Values
- Interests
Behavioral data
Behavioral data shows how a consumer acts on their psychographic data.[2] For example, it maps steps across the customer journey. These data show up in their:
- Engagement
- Readiness to buy
- Purchase history
- Account age
Geographic data
In short, this is the physical location of consumers, such as city, province, region, and country. As a result, it helps marketers build campaigns aimed at people in one area.
B2B vs B2C customer profile
A customer profile does not only cover individual buyers. In fact, it can also cover companies. Naturally, a profile for a person looks different from one for a business.
When you build a profile for a company, look at these points:
- Revenue
- Company size
- Industry
- Location
- Employee count
- Annual turnover rate
- Target audience
How to create a customer profile
A customer profile only works if it is well made. So it helps to follow a clear, step-by-step approach. Below are the steps marketers can use to build a profile that fits their needs.
1. Identify your best customers
First, research the people who buy your products or services. Look at your customer database. Then find the top five to ten customers who get the most value from your business.
Maybe your business is new and lacks enough customers to study. In that case, list the kinds of people who would benefit from your products. For example, if you sell ergonomic chairs, add computer users to your list.
2. List their notable traits
Next, write down each customer’s key traits. These may cover demographics, psychographics, geographic segmentation, firmographics for B2B profiles, and socioeconomics.
3. Survey them
As you list these traits, you may know more about some customers than others. So surveys can help fill the gaps. For example, free tools like Google Forms make surveys easy to run. Aim your questions at the missing details, such as demographics or psychographics.
4. Use data from your online channels
Online channels like email, web analytics, and social media hold rich customer data. Each channel shows different insights about habits, interests, and pain points. As a result, these data plus your trait list give a fuller view of your customer profile.
5. Fill in the customer profile
Now you know your customers’ traits and why they buy. So put these details into a single document. A good way to organize them is to list the following:
- Give the “customer” a name
- Put a face on the customer
- Add the customer’s demographic information
- Add the customer’s psychographic and socioeconomic traits
- Add a quote from the customer
- Add the customer’s goals, pain points, and motivations
- Add the customer’s preferred communication channel
You can make the profile as detailed as you want. However, keeping it simple is wise. So you avoid getting stuck by too much information.
How creating a customer profile helps
A customer profile gives marketers plenty of benefits. Here are the main ones.
Improves targeted marketing
It is easier to build targeted ads when you already know your audience. For example, say you run a bike shop and your buyers are millennials who love long rides. So you can feature bike accessories in your next newsletter.
Improves customer experience
Access to customer profiles makes each experience more personal. In addition, support agents can help faster, since they already know the customer’s pain points. As a result, this feeds a stronger customer retention plan.
Improves sales rate
Better targeting means better-quality leads. These leads are more likely to buy. So you close more deals and lift your customer acquisition results.
Reduces customer churn
Higher-quality leads turn into more invested customers. These people truly need your products or services. As a result, you cut customer churn and keep fewer “come-and-go” buyers.
Tools marketers can use in creating a customer profile
Many online tools can help you build a strong customer profile. For example, these include:
- Data collection tools, such as lead capture forms and surveys
- Communication platforms, such as email and social media
- Web analytics, such as Google Analytics and customer accounts
- Core business tools, such as eCommerce platforms, billing systems, and CX platforms
References
[1] customers’ purchasing decisions. Limayem, M. et al. (2000). “What makes consumers buy from the internet? A longitudinal study of online shopping.” Institute of Electrical and Electronics Engineers, 30(4), pp. 421-432. DOI: 10.1109/3468.852436
[2] psychographic data. Lin, C. (2002). “Segmenting customer brand preference: demographic or psychographic”. Journal of Product & Brand Management, 11(4), pp. 249-268. https://doi.org/10.1108/10610420210435443
Frequently asked questions about customer profiles
What is the difference between a customer profile and a buyer persona?
A customer profile is based on real data about your current customers. A buyer persona, on the other hand, is a semi-fictional sketch of your ideal buyer. So the two work well together.
How often should I update a customer profile?
Review it at least once or twice a year. However, update it sooner if your market shifts or you launch a new product. Fresh data keeps your targeting sharp.
Can small businesses benefit from customer profiles?
Yes. Even a short profile helps a small business focus its budget. So owners spend less on ads that miss the mark.
What data is most important in a customer profile?
It depends on your goals. Still, most teams start with demographics and pain points. Then they add psychographic and behavioral data for a fuller view.
Do I need special software to build a customer profile?
No. You can start with a simple document or spreadsheet. However, CRM and analytics tools make the work faster as your customer base grows.
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