The success of a business doesn’t come from selling to as many people as possible, but by selecting a target market, they can reliably gain revenue from it. When you have a set of consumers, you can continue to satisfy. This opens up to a business phenomenon known as patronage. However, with the multitude of competitors vying for the same privilege, having a stream of loyal customers is either going to be a godsend or a product of concise customer analysis.
What Is Customer Analysis?
As a customer, have you ever taken the time to look back at your previous purchases? What were the factors that hypnotized you to suddenly take out your wallet, and buy that item or service? Chances are the reason why you bought it was because that particular product was tailor-made to fit your criteria. Businesses and franchises understand that there are exploitable customer profiles, and market trends and patterns they can use to gain revenue; thus, the people who they can most comfortably provide goods and services for their chosen target market. An excellent example of this is the existence of vegan and pork-free products made for the palate and preference of a specific group of people.
This is what is known as customer analysis. Customer analysis is the selection of a set of individuals who either want, can afford or need your goods and services. This type of analysis is done to establish a patron basis and to increase the amount of reliable revenue gained by the company. A customer analysis has multiple aspects tackling areas of specification, such as strengths and weaknesses, possible competitors, and even performance gaps. When done right, this will provide you with customer profiles you wish to target and heavily advertise to secure their loyalty to your brand.
Most people know the Gs, PGs, PG-13s, Rs, and NC-17s found on films come from MPPA. These ratings help audiences determine the types of films available and who can view them. It’s never a good idea to generalize a movie based on a specific genre as, for example, not all superhero movies are for kids (case in point, Deadpool). With that said, to a certain degree, filmmakers understand these film ratings and find ways to work around them.
Much like how businessmen focus on a particular group of customers, it wouldn’t make sense for producers to try and release a movie that covers all five ratings. With rated-G cartoons and animations, they market heavily to children, for R-rated and NC-17 movies, adults are the target audience. At the end of the day, marketing viewership is no different from advertising goods and services. It’s better to be selective of the reliable than to try and cater to everyone and end up satisfying no one.
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How to Find Your Customer Base Through an Analysis
As your business grows, so too will the cost of upkeep. Perhaps in your early days you could still find a way to cater to the needs of a broad market but this isn’t a long-term system. Furthermore, unless you have a reasonably large capital and the resources to fuel your cause, your franchise will crash and burn sooner than you think. With that said, knowing how to find your target market requires effective customer analysis, the patience to utilize trial and error, and help from these generic suggestions.
1. Identify their Needs
What do your customers need the most? Do they need fresh produce daily? Yard keeping services? A reliable supply of liquid nitrogen? Your job as an entrepreneur is to identify the needs of your target audience, and see if what their looking for is something you can provide.
2. Market Your Solution
Whether they purchase your goods and services out of necessity or convenience, they’re not really after your product. Customers purchase the commodities that solve their current problem whatever that may be. As such, in selecting your customer basis, convince them that your product is more than just another item on the counnter but the solution to their predicament.
3. Know Your Competition
The one thing major corporations do all the time is study their opposition. An objective and unbiased SWOT analysis that contains data on your company’s and your competition’s strengths and weaknesses provides relevant information for improvement. Using the above-mentioned process, you can learn what you’re doing right and wrong, how you can improve, and you can learn how your opponents do the same to stay a step ahead.
4. Use Customer Feedback
Establishing a body of patrons has one discrete advantage: reliable customer feedback. Do not take their small tips and tricks for granted nor shrug it off, as much as you want to think you know more about your product than your customers, you don’t. For example, if you’re a video game developer who keeps releasing tons of new content regularly, but fails to fix the bug issues that your playerbase constantly talks about, is this a sustainable franchise? Learn from your consumers as they can help you improve product quality and increase your revenue.
From audiences and luxurious expenditures of life to the daily needs and essential commodities of everyone, marketing isn’t a one-sided endeavor that revolves solely around the goods and services. It’s more so about the customers that make the purchases and enjoy the solutions of their little pickle. Hence, being an effective business isn’t about moderately satisfying the wants of every person passing through supermarket aisles, but by catering to a body of consumers whom you can reliably supply with their demands.
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