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How to know your Customers ‘Inside-Out’?

It is common knowledge that customers are the lifeblood of businesses. Let’s face it, if you don’t have customers, you don’t have a business.

Yet, while most businesses say that the customer is an important part of their business, their actions do not support their words.

Many companies spend most of their marketing dollars trying to attract new customers, leaving their existing, loyal customers fending for themselves. Did you know it is five times more expensive to obtain a new customer than it is to satisfy your existing customer?

Worse still, some do not treat their customer complaints seriously enough.

To run a successful business, you must have in-depth knowledge of who your core customers are and their evolving wants and needs.

There are several key areas that need to be evaluated, in order to understand your customers.

What Benefits are your Customers Buying?

Customers do not purchase features or products, they purchase benefits. Consumers don’t buy laundry powder, they purchase goods that make their whites brighter, save them time in the laundry and remove stains. Likewise, they don’t purchase televisions, but home entertainment boxes for family unity.

Similarly, people rarely make purchases based on rational, logical thought. Instead, they purchase products and services based on emotional reasons. Then, they rationalise their emotional desires with logic.

Interpreting buying behaviour can be complex due to the myriad of emotional and rational factors that are used in the purchase decision process. It is important to unravel this complexity in order to profit from it. You need to find out, from the customer’s point of view, what exactly it is they are buying. This will enable you to sell the emotional benefits to your current and potential customers and produce innovative products desired by your customers.

What Types of People are Buying your Products/Service?

Some crucial factors that affect purchasing behaviour are the personal characteristics of the consumer. These are demographics (eg: age, gender, occupational status) and psychographics (eg: preferred recreational activities, level of spending on clothes).

By combining both your demographics and psychographics, you will be able to accurately define your target market. This can save you money on advertising in the long run, as you will be able to precisely match the media audience characteristics with your core customers

For example, instead of just targeting females aged 25-39 years, you will


need to find the right promotional vehicle that matches your market of professional females, 25-39 years of age, fashion-conscious, with a high disposable income.

When do Your Customers Buy?

Buying patterns are often closely related to a customer’s lifecycle stage. Important ‘rites of passage’ occasions are moving out of the parental home, marriage or change in employment.

By understanding the different lifestyle factors that may affect your customer’s buying patterns, you will be able to target your customers through more appropriate advertising (eg: Back to School).

How Satisfied are your Customers after Purchase?

Research has found that repeat and referral business typically account for 60-90% of revenues. The value of loyal customers and word-of-mouth endorsements should never be underestimated.

For a customer to recommend your product and use you again, it is crucial that every contact you have with your customer is satisfactory.

The best way to find out your level of customer satisfaction is to ask them. If you have a small client base, this is a relatively easy procedure, but if you have a large customer base and different staff attending to their needs, a market research study will need to be implemented.

How do you conduct Customer Satisfaction Research?

There are two ways – you can conduct the research in-house or you could commission a market research agency.

Conducting the research yourself is advisable if you have lots of time, you feel knowledgeable and confident about questionnaire/research design and data analysis. Remember, conducting market research is a lot harder than it looks. Therefore, you will need to invest time and money reading books on how to conduct research.

If you choose to commission a market research agency, there are several things you can do to cut costs. Write a draft of your questionnaire and/or use a freelance market research consultant or small agency who charge a more competitive fee.

All in all, communication is the foundation of customer service. It is only through listening to your customers that you can meet their needs and ensure your success.

About the Author

Marie-Claire Ross is the Principal Consultant of Astute Research, a market research consultancy dedicated to providing strategic, cost effective, quality and innovative market research services. She also provides an ezine “Astute Business Ideas”. Subscribe at her site: www.astuteresearch.com.au, or by sending a blank email to mc@astuteresearch.com.au.

 

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  • how to create your ezine ad campaign part 1 evaluating ezines

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  • how to profit when your product isnt selling

  • how to promote your business a 10 step guide for beginners

  • how to promote your small business without spending a fortune

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  • how to properly use ezine advertising conclusion

  • how to properly use ezine advertising part one

  • how to properly use ezine advertising part three

  • how to properly use ezine advertising part two

  • how to publish your own highly demand ezine

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  • how to use your google api key as your secret weapon part two

  • how to write and craft your online classified ads

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  • how well do you know your prospects take this 10 point quiz to find out

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  • hunting for niches

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  • if your sales need a shot of adrenaline maybe your easy street needs a bump

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  • importance of marketing offline

  • improve email deliverability 15 tips for successful email marketing

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  • increase your book sales when a book for sale is no longer a book for sale

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  • index

  • industry pro interview insider secrets to building your pr campaign

  • industry pro interview marketing beyond the basics

  • inner directed marketing a new way to prosper in tough times

  • insights to advertising

  • insurance and financial services sales tactics

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  • internet 101 hitch your wagon to a star for internet success

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  • internet business doomed by grand theft

  • internet marketing avoid blind sheep mentality

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  • internet marketing in the future

  • internet marketing is confusing isnt it

  • internet marketing i dont know everything neither do you

  • internet marketing or whats that you say

  • internet marketing requires lots of patience

  • internet marketing strategy the advertising co op

  • internet marketing success requires a business plan part ii

  • internet marketing success the easy way

  • internet promotion ezines

  • internet promotion off line site promotion

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  • interviews one of the easiest products to create

  • interviews with successful ezine publishers david geer

  • interviews with successful ezine publishers eva browne paterson

  • interviews with successful ezine publishers james mcewen

  • interviews with successful ezine publishers jan tallent dandridge

  • interviews with successful ezine publishers jan wallen

  • interviews with successful ezine publishers pamela geiss

  • interviews with successful ezine publishers paul becker

  • interviews with successful ezine publishers renee kennedy

  • interviews with successful ezine publishers thomas olin

  • interviews with well known ezine writers 3 shelley lowery

  • interview with an ezine marketing pro alexandria k brown

  • interview with ezine publisher terry telford

  • interview with michael murray autoresponder basics

  • introduce to pluginnetproefit com marketing strategies that empower success course

  • introduction to autoresponders

  • is a home business right for you

  • is ezine advertising still worth

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  • ive got an article to submit now what do i do with it 6 tips

  • i dont want to publish my own ezine thats my final answer

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  • i want to do an ezine part 1 what is an ezine

  • i want to do an ezine part 2 how do i start

  • i want to do an ezine part 3 what is content

  • i want to do an ezine part 4 how do i promote

  • i want to do an ezine part 5 more promoting

  • johnny appleseed a lesson in sowing and reaping

  • joint ventures your path to success

  • joint venture 101 the quickest way to build your ebusiness

  • joint venture 101 the quickest way to build your ebusiness part 1

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  • just give them what they want

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  • know these five audiences to write a top selling book

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  • marketing a professional practice free by writing

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  • marketing basics gather it all up

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  • mind set that helps you get new clients

  • mini persuaders six steps to successful classified ads

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  • most commonly asked questions about ezine publishing

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  • my cybernet life story the life and trials of an internet junkie

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  • networked markets are democratic structured markets are republican

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  • newbies guide to writing and submitting ezine articles

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  • nine power words to punch up your ads

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  • offline advertising tips

  • offline marketing part 1 drawings

  • offline promotion 45 places your url should be seen or heard

  • offline promotion matters too

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  • old and new contents for your ezines newsletter

  • one american city defies the rule

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  • online promotion beats traditional seven one part 2

  • on your honor 3 steps to building the e trust factor

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  • opt in email and ezine advertising still more effective than rss blogs and ppc

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  • part 1 easy steps to creating your very own ezine

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  • payment processing basics

  • pay per click fraud exposed

  • pay per click search engines get the most bang for your buck

  • personalizing your emails an amazing technique that doubles your click throughs and profits

  • personal profile of the week bob osgoodby

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  • politicians are like car sales people

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  • postcards with an edge 7 ways to use postcards in your marketing campaign

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