by L
ori Schulenberg
Who are your best customers? You may know which customers generate the most revenue and profit, but how well do you really “know” them? The more you understand your most valued customers, the better you can target other potentially great customers to establish new relationships that can grow sales and boost your business.
Developing ideal customer profiles helps you better develop targeted marketing plans. There are two basic types of customer profiles. Demographic profiles tell you “who” your customers are, while behavioral profiles answer the questions “how” and “why” they buy from you. Both help you understand your current customers so you can predict characteristics you want to see in your target customers.
Demographic profiles include attributes such as age, gender, income levels, marital status and place of residence, while behavioral profiles generally focus on shopping and purchasing patterns. For example, younger buyers may behave differently than older buyers, perhaps buying products more on the basis of status as opposed to quality or price.
Here are three steps for creating effective buyer profiles:
1: Create a demographic profile of your customers. For specific geographic areas, use online tools, such as Census Department data (www.census.gov), to gather population and economic information on customers in your area.
2: Evaluate your current customers. Review your sales during the past six months, identify principal customers, and profile them. Those who purchased most frequently and spent the most will likely be your best target customers for the future.
3: Look at behavior. You probably already know your customers better than you think. But what characteristics do they share? Their demographics will help identify common traits but also look at behavioral characteristics. For example, review recency and frequency patterns, how often customers buy from you, and which ones spent the most money. That can tell you who is likely to be a better customer in the future.
Evaluating the Results – Now examine your ideal customer profile. What characteristics, such as age or gender, do your best customers share? Next, look at your current marketing strategies. Are you effectively targeting your best customers? If not, you can adapt your strategies to focus on those customers who best fit your business now and can help you grow in the future.
California Bank & Trust is proud to support Temecula businesses.
For additional information, call Lorie Schulenberg, Senior Vice President and Branch Manager of our Temecula Valley Branch at (951) 296-2422 or visit CB&T’s Business Resource Center at CALBANKTRUST.COM.