How Customer Profiling Can Help Accelerate Your Business
In today's fiercely competitive business environment, keeping your eyes peeled on the latest customers’ preferences and behaviour is key to customer retention and increased market share. Based on a survey done by Deloitte, companies that prioritise customer centricity are 60% more profitable than firms that do not put customers’ needs first.
One of the most effective ways to gain this understanding is through customer profiling. A customer profile is not limited to the name and contact details but a broad spectrum of data that epitomises how the target audience engages with a brand. By creating detailed profiles of your customers, you can gain insights into their preferences, behaviours, and needs, which can help you tailor your products and services to better meet their expectations.
What is customer profiling?
Customer profiling is the process of creating detailed descriptions of your customers based on their demographics, behaviours, interests, pain points, and other relevant data points. This process involves collecting data from various sources, such as customer surveys, purchase history, social media interactions, footfall tracking, and website analytics. By analysing this data, businesses can gain a better understanding of who their top customers are, what motivates them, where have they been visiting, how far they travel from home or work locations, and what matters most when they interact with a brand.
How can customer profiling help accelerate your business?
- Tailored marketing campaigns and content
With customer profiling, businesses can create targeted marketing campaigns and content based on their online and offline interests. This is done by considering different features of the customers such as their location, personas, etc. You would not want to waste your marketing or advertising budget on the wrong audience groups, especially when you have a limited budget to work on. Look into the data you have at hand, both qualitative and quantitative, and view that information like a narrative. You might uncover more insightful information than expected. Serving relevant products, services, content, and communication to the right audience leads to increased engagement, higher conversion rates, lower cost per acquisition, and ultimately, higher revenue.
Among the solutions that Burger King in Thailand sought from ADA is Consumer Profiler as they wanted to gain insights into consumers’ attributes and behaviours to expand their customer base. Equipped with this information, they launched a campaign on their new Thai menu targeting consumers that like food & dining in locations where they have a physical presence. As a result, they achieved a 12% increase in daily sales, a 4% increase in brand consideration, and more.
- Improved customer relevance
When one wants to set up a new mall or a new store, it is critical to find out who visits similar malls or stores, when they visit, how far they travel from home or work location, and what are their online and offline preferences. Armed with such insights, a mall could cater to the prospective customers residing or working within the vicinity of the new mall.
Knowing the prospective customers’ online and offline preferences (or their persona) could support the selection of retail tenancies to cater to the crowd. For example, if the persona of most visitors is that of a social butterfly, the mall ought to plan for a set-up of café, restaurants, or bars visible on the ground floor to attract prospective customers.
Several property developers and mall operators subscribed to ADA’s Consumer Profiler to understand the visitors’ footfall levels to competing malls and the prospective customers surrounding the mall. This has helped with their planning and accelerated their growth with the right tenancy mix.
- Improved loyalty and reduce churn
Customer profiling can also help businesses optimise their operations by identifying patterns and trends in customer behaviours. For example, businesses can use customer profiling to determine the best times to offer promotions, when to stock certain products, and when to schedule staff. With this, businesses can improve their prediction, prevention, and response to their customers’ issues.
Tesla is listed as one of the fastest growing companies in the Fortune Global 500 list and this is contributed by their in-depth understanding of their customer profiles. They are able to exploit the insights gathered from the customer profiling process to create the Tesla experience whereby the driver profiles are unique to each driver. Each driver can make reconfigurations such as suspension, braking, driving style, and more with the push of a button, instead of having to perform those adjustments manually. This is what makes Tesla one of the car manufacturers with high customer satisfaction ratings and 78% of Tesla owners will purchase another Tesla in the future.
At ADA, our Device Insights Dashboard profiles the demographics and persona of each smartphone brand and model in each market (by country, state, district level). Knowing the age group, gender, affluence, device age, and persona of each device model helped device manufacturers understand the different user profiles they should be targeting. Understanding the consumer profiles of each competing device has helped them gain a competitive advantage.
How can ADA aid in consumer profiling?
ADA can produce different types of analysis to better understand a company's consumers and their profiles. Below are the types of analysis that can be done:
- Footfall levels
Footfall analysis of consumers by time blocks of day, week, and month.
Analysis of age group and gender, use of mobile device model, and home property prices may be used as a proxy to affluence.
Categorisation of visitors based on our 10 personas or customised personas per client’s focus.
- Cross-visit patterns
Observe the switching behaviour of visitors, from one brand to another.
- Device information
Analysis of telco providers and mobile device model used by consumers.
- Distance to Point of Interest (POI)
Analysis of distance travelled from home or work location.
Take your business to the next level
Customer profiling is a powerful tool that can help businesses accelerate their growth by providing insights into their customers' needs and preferences. With a deeper understanding of your customers, you can make data-driven decisions in marketing, operations, and more that lead to increased revenue and customer satisfaction.
ADA has served clients from various sectors and won accolades such as the Campaign Asia Agency of the Year, The Drum, and more. Contact us or your ADA representative to learn how to make full use of ADA’s data solutions for your business.