Customer Profiling

Customer Profiling
Customer Profiling: Why is it important?

Who is your ideal customer?
If you don’t build customer profiles, your strategy will be hit and
miss and you won’t be getting a strong return on investment for
your marketing efforts. You'll also be giving your competition a
real competitive edge, because this is what savvy companies are
doing.
Customer Profiles: the kind of people most likely to be
attracted to a specific product.
•Cohort : a group that shares common characteristics and buying
habits, also called a Consumer or market segment.
Primary or target market : the most likely consumers
Secondary market : other, occasional consumers
Customer Profiles
• Knowledge of consumer profiles affects distribution, advertising,
product design, media, international markets.
• Deliver the precise solutions to meet your customers’ needs
Knowing a customer in this depth allows you to deliver the precise
solutions to meet your customers’ needs. It enables you to offer
products at the right locations, at the right price, and deliver the
right features and support to create positive buying experiences.
• Aim for exceptional customer experiences Research your
customers and find out as much about them as possible. What
problems and desires led them to consider your product? Why did
they choose your product over your competitors?
• Use whatever communication types you can – interviews, surveys,
chatting at events or in their workplace.
Customer Profiles
Demographics: the study of obvious characteristics that
categorize people e.g.. age, gender, family life cycle, income level,
ethnicity, culture. Age
– generally broken down into six groups: 0-14, 15-24, 25-44, 45-64, 65-
74, 75 and over
– Different researchers use different breakdowns…
Gender
– Few products are marketed exclusively to one gender; gender roles
have changed, many products are successfully marketed to both.
But here are some typical gender segments:
• Male – Cologne, Tools, Cars, Football
• Female – Perfume, Purses, Romantic Novels
• Both – Groceries, Gas, Movie Rentals
Five Major Generations
Five Major Generations
Mature 60+
Baby boomers 45-59
Generation X 27-45
Generation Y 11-26
Millennium Kids 0-10
How Does Facebook Make Money?
source: http://www.ibtimes.com/articles/234132/20111019/how-
does-facebook-make-money.htm
Facebook is the world's largest social network, with a

reported 800 million users. But the service is free to
users, in that it doesn't charge a sign-up or monthly fee.
So, many wonder: How does Facebook make money?
Facebook has become proficient at making money, to
say the least. According to a report, Facebook will
generate $4.27 billion in revenue this year -- double
what the company made in 2010. Of that $4.27 billion,
some $3.8 billion will come from advertising, according
to New York - based EMarketer.
Demographics
Interesting FB Facts Break…
• - Average user has 130 friends on the site
• - Average user spends an average 15 hours and 33
• minutes on Facebook per month
• - Average user visits the site 40 times per month
• - Average user spends 23 minutes on each visit
• - Average user creates 90 pieces of content each month
• - 200 million people access Facebook via a mobile device
• each day
• - More than 30 billion pieces of content are shared each day
• - Users that access Facebook on mobile devices are twice as
• active on Facebook compared to non-mobile users
• - Facebook generates 770 billion page views per month
Demographics
New Family – diapers, baby food
Older Family – Ipods, computers
Family Life Cycle

Demographics
Income Level: Businesses use this to determine whom to
market to. Upper-income group can/will buy more
expensive items. Most businesses target
customers of average income and compete for
customers’ discretionary income.
Psychographics:
Customers may also be grouped by similar

psychographic variables such as values, beliefs,
buying patterns, perceptions, and lifestyle choices
such as recycling, fitness, travel, and hobby interests.
Psychographic variables provide insights into how
and why customers buy.
Psychographics:
Geographics
Marketers are also interested in where consumers live.

Urban Consumer
– live within the boundaries of a city
– live in apartments, condos, houses with small yards
– spend on cultural events, restaurants, public transport
Suburban Consumer
– lives on the outskirts of the city
– needs at least one car
– spends money on gardens, barbecues, home furnishings
– almost always commutes
Rural Consumer
– usually need a truck to carry items
– often has large parcels of land and needs riding mower, tractor, other farm
equipment
Geographics
• Marketers develop Consumer Profiles by combining

Demographic, Psychographic and Geographic information.
• This is done with consumer surveys and by data mining habits
we reveal through credit card purchases and Internet usage.
• Google and Facebook are constantly “mined”, because we
divulge our location and willingly offer details about ourselves
through searches and posts.
• Consumer Profiles are also developed through census data
published by the Government. This data is full of
Demographic, Psychographic and Geographic information
Marketers can use.

Customer Profiling

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Customer Profiling

Customer Profiling: Why is it important?

Facebook is the world's largest social network, with a

Older Family – Ipods, computers

Family Life Cycle

Customers may also be grouped by similar

Marketers are also interested in where consumers live.

• Marketers develop Consumer Profiles by combining

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