Customer Profiling

'Customer segmentation is one of the key functions of marketing. It aims to divide a large customer base into smaller subgroups that share similar needs and characteristics. Typical criteria for classification are age, gender, occupation, financial situation, lifestyle, life stage, residential location, purchasing behaviour and spending habits. Segmentation helps enhance a company's understanding of its customers so that it can position its brand and offer products and services designed to appeal to the targeted customers.' (Posner 2011, pp. 105)


'By identifying and understanding the customers in the clusters where you have the highest penetration, you can target marketing or business activities to those who are most likely to purchase your products.' (Mapping Analytics 2007)


It is important when profiling a target customer that one understands both the demographics (i.e. age, gender, employment, financial status etc) and the psychographics (attitudes, behaviours and interests) of the customer. These attributes must be detailed very comprehensively in order to obtain the most accurate portrayal of the target customer as possible.


References


Posner, H., 2011, Marketing Fashion, Laurence King Publishing Ltd., London.


2007, Customer Profiling Benefits, Mapping Analytics, viewed 20th May 2012, http://www.mappinganalytics.com/customer-profiling/customer-profiling-benefits.html>


Wilder, W., 2012, Do you know enough about your customers, Customer Relationship Management, viewed 20th May 2012, <http://intellinova.com/analysis/customer-profiling/do-you-know-enough-about-your-customers/>