Practicing Socially Responsible Practices Internally
In previous articles, we have seen how companies need to adopt CSR as a business need and imperative. The role of media and advocacy groups was discussed as well. In this article, we turn to a crucial but often neglected aspect of a company’s social responsibility i.e. the need to be socially conscious with its […]
Strategy Evaluation Process and its Significance
Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in todays dynamic world with socio-economic, political and technological innovations. Strategic Evaluation is the final phase of strategic […]
Making Corporations Accountable for their Actions by Voluntary and Involuntary Means
Why Corporations Must be Made Accountable for Their Actions Throughout the history of the modern corporations, there have been cases where corporations have literally and figuratively gotten off with murder and wanton destruction and exploitation of the natural environment. Indeed, the 20th century is littered with examples of how rapacious corporations have both extracted resources […]
Pre Sales Process in Multi Level Marketing
We are living in exciting times. For anyone and everyone, there are abundant opportunities to earn decent income and achieve economic wellbeing, provided one is ready to work hard and work smart. For people who are interested in earning a second income or are interested in making selling a career, Multi Level Marketing offers unlimited […]
What is Brand Promise? – Mistakes to Avoid While Building it
Brand evokes the responses. There are many people who love their Apple iPod or love their car etc. There are certain feelings that come to your mind when you think about your favorite brands. People expect that these brands should demonstrate brand promises every time whenever they are, encountered. Inconsistencies in the performance of services […]
For a developing business it is very important to understand who are the best customers, how to find more customers like these and where to find. Customer profiling is the best strategy to accomplish this. It helps to find valuable new customers, enhance the profitability by retaining existing customers and also identify low valued customers so as to minimize the cost to reach them. Customer profiling is a behavioral relationship marketing technique which includes a variety of marketing strategies ranging from simple one’s to most complex one’s.
Customer profiling starts with identification of relevant information regarding all the satisfied existing customers and then try to target new prospects with matching profiles. The profiles of customers can be categorized differently according to some influential variables present in their profile.
For example, let’s examine the following two customer profiles:
The first profile clearly indicates that the customer characteristics are demographic. The demographic profiles always help the suppliers to attract the customers and generate good revenue in the amateur stages of projects; these projects are basically online projects. The first profile will be interesting for someone inside the organization who is in advertisement department or who is involved in deciding the content and matter of websites.
The second profile can be depicted as a behavioral profile. The basic questions arise regarding to this profile should be, will they buy again? Will they visit again? A behavioral profile indicates the prominence of the relationship with customer in near future hence these profiles are crucial for organizations that focus on retaining more customers to increase their business value. Although behavioral profiles are more prominent than demographic but a combination of both provides a powerful and strong database to decide the customer characteristics in efficient way. The following steps depicts an ideal profiling technique:
The above process is involved ideally for simple profiling which can become complex for complex strategies. After profiling is completed the customers are then segmented according to segmentation variables. Every customer has individual preferences, needs and behavior associated with products which are different from other customers. Substantially it becomes impossible for suppliers to manage customers separately on individual characteristics; hence they pool customers into separate segments according to the type and variables they have in common.
Invalid or wrong information passed while profiling process will result in suboptimal decisions and unworthy consequences and could fetch customer dissatisfaction and could even lead to customer defect. Hence all the information and data should be validated and corrected before profiling is done. Customer profiling is the basis of market research techniques and is proved to be the most useful strategy under any circumstances in customer acquisition approach.
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