Know Your Customer

When starting a business, one of the key tasks in customer relations is creating a customer profile and defining your target audience.

When starting a business, one of the key tasks in customer relations is creating a customer profile and defining your target audience.

Know Your Customer, image #1

Customer profile – a comprehensive representation of a person that includes characteristics telling EVERYTHING about a potential buyer. It's defined through geographic, socio-demographic, behavioral and psychographic parameters.

What parameters are universal?

  • Age
  • Gender
  • Location
  • Marital status
  • Number of children
  • Employment sector
  • Income level
  • Position
  • Needs
  • Desires
  • Phobias

For example, selling premium products at high prices would be unprofitable in villages or small towns with low salaries, even if the product quality is excellent.

You can use any characteristics that distinguish "your" people.

Where to start?

Begin by grouping people using these questions:

  1. Gender, age, occupation
  2. Geographic location: country, city, district
  3. Marital status, children
  4. Income (monthly or annual)
  5. Needs and desires

You might end up with several groups - this is normal. Groups can be divided into direct and indirect potential customers. The first group is obvious. The latter might include, for example, children who aren't financially independent but are interested in your product.

Visualize.

Imagine your customers. From names to where they typically shop, find photos online and create dossiers for each customer group. Outline each group's needs.

For example, you sell flowers and toys at kiosks.

Here's a sample customer profile:

Egor, 22. Student living in a dorm, uses public transport. Income - about 10K RUB stipend plus 15K RUB from side jobs. He's not ready to spend much. Egor uses VK and Instagram. He has a girlfriend. He needs an affordable flower and gift shop where he can buy surprises for her.

Know Your Customer, image #2

How will customer profiles help me?

You can develop advertising campaigns based on potential customer profiles. Maintain accounts on relevant social networks, target ads geographically and by interests. Use both online and offline promotion based on behavioral characteristics.

Conclusion

Creating customer profiles is actually quite extensive, labor-intensive, and creative work. You can include any items if needed. Analyze your customer's behavior and thinking, and also create negative customer profiles to understand who definitely ISN'T your target audience.

Recommended Reading

These books will help you better understand target audiences and customer profiles:

"Target Audience: How to Find Yours and Become a Magnet for It"

Author: Tom Vanderbilt

"You'll Learn Everything About Target Audiences and Business"

Author: Vera Vasilyevna Dvurechenskaya