How To Analyse Your Customers And Draw Conclusions
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Benefits of Understanding Your Customers
Why do you need to analyse your customers? Well, they ultimately help you sell more. Regardless of the nature of your business, your customers are the key to your success. Every one of them is responsible for some form of profit to your organisation. The more you know about your customers, their needs and behaviours, the easier it is to pinpoint the best ways to engage with them and deliver appropriate offers that will maximise your sales.
Understanding your customers also helps with planning and management of resources. If you can predict what they will buy and how much, you can plan your resources accordingly to minimise loss.
Let’s not forget that the more information you have access to about your customers, the better you can interact with them improving your overall customer service.
By conducting thorough analyses of your customer base on a regular basis, you will be able to identify which of them bring you the most value. You can then use these profiles to nurture and build relationships with existing customers but also utilise them to source new similar prospects. They may even help you identify a set of customers that you haven’t targeted before, but that could be worthwhile.
Analysing your Customers
As we have established, your customers are a valuable source of information. But it’s important to collect the right data and to avoid making empty assumptions. So let’s break down the best ways to analyse your customers:
A good place to start is finding out who your demographic is. If you sell directly to consumers, you will want to know their age, gender, income, where they live and so on. However, if you trade with businesses you need more relevant information like their size, the industry they operate in, location, scope, etc.
CRM systems can be a great tool to use as they have the ability to extract all this information for you at the click of a button.
You also need to know what is making your customers buy your products or services. What are your customers buying? How much and why? What factors are influencing them? What are their needs, wants and demands? What journey is your customer taking to reach you? What is most in demand? Use these questions to help you analyse your customers, and you will be able to narrow down what your customer’s purchasing habits are. By establishing this, you will then be able to tailor your offering exactly to suit their needs and wants.
New vs. Returning Customers
The last crucial aspect of your customer analysis profile is determining whether your customers are coming back or converting from a prospect to a customer, depending on the nature of your business. If this is not the case, then there is something wrong. However, the above two points will help you establish this. If the customer is not performing how you would like, then you will need to detect which functions are working and which ones you should be discarding.
Profiling your customers in this way enables you to group them into different segments that you can approach separately depending on your product offering or business strategy.
There are multiple ways you can collect the information you need about your customers. We list the best methods below:
Speak to your customers
Speaking to a few important customers, particularly if you’re a B2B business, is a good opportunity to get inside their heads. By speaking to them, you will get a real insight into how your customers behave and think and the information you obtain will be much more valuable than any other metrics and analytics package.
Feedback will always be worthwhile so if you can’t speak to your customers, why not use surveys or get in touch through email.
If website activity is a significant aspect of your business strategy, you should be tracking how your customers are using your web pages. You should never assume that people are navigating your website as you have visualised; users can be unpredictable.
Your web hosting account and analytics package can provide a sizeable amount of data about your website visitors. While there is a lot of information on offer, look for the metrics that tell you where your visitors are from, what they are looking for, clicking on and how they go about finding it. Assessing this data on a regular basis will help you create a greater picture of your customers.
Create alternative paths
Another way of understanding your customer’s way of thinking is by controlling their actions. If you have a webpage that only consists of information on your product offering, ensure there are at least two action possibilities. By having two ‘calls of action’, you are leading your customers to distinct and clearly different outcomes. These different behaviour pathways will inform you what kind of customers you are attracting. There will be the active customers that want instant outcomes and the more thoughtful and guarded individuals.
Ultimately, knowing your customers and understanding their behaviour is an activity that you cannot ignore. Carry out a good, thorough study to properly analyse your customers, and you will be able to position your offering in the best possible way that gets them buying.