How Well Do You Know Your Customer

We have mentioned on a number of occasions, the importance of marketing to your established consumer base, as a means of maximising their existing spend. From the point of company formation, it is vital that you have an understanding of your customer and their key purchase drivers. It may seem obvious, but making sure you have a clear and comprehensive knowledge of your consumer is key to every element of forming your own company, from writing a business plan, to creating an effective marketing strategy. While in the current economic climate, the fundamental objective of most businesses is to drive incremental income by appealing to everyone, you don’t actually want to market to everyone. Instead, establish the demographic profile of your most commercially valuable customers, get a clear understanding of what form of communication they respond to, and market to them. Not only is this more efficient, it will also help you make informed decisions about your company’s future growth.
But where do you start when attempting to define your typical consumer? The obvious answer is to carry out some market research. There are a various methods of doing this from establishing their demographic profile, to establishing what they have bought from you and the key drivers of purchase. Try and identify a correlation between your customers; do they share a geographic location, do they purchase from you in the same way or buy a similar range of products and crucially why do you think to buy from you instead of your competitors?
Regardless of the sector you operate in, whether it is business to business or business to consumer, ultimately, your product or service is bought by a person. Once you have been through the process of establishing your customers demographic profile and buying behaviour, you need to ask yourself the following questions; what does your customer want that you don’t currently provide? Do they have any problems with the service they currently receive? How can it be improved?
Once you have established this information, not only should it inform how you position your marketing and sales strategy, but it should also define how you grow your company