Why knowing your customer is critical?
Nowadays, when ordering your products’ stock or preparing your new point of sale shop window, you are ofcourse thinking about doing what will suit your customers the best. Then the objective is to offer products tailored to their needs and wishes, adapting also your store to its environment (competitors and attractors around your stores, for example). Wouldn’t it be interesting to gather more objective data about your customers, digging deeper into their profiles and then, really sticking to what they are looking for?
Thanks to your loyalty programs you already have access to a lot of data about your customers: who they are, what do they buy and how frequently, where they live, etc. But if you don’t have similar programs or if you want to go a step further you can also use Location Intelligence software. Those applications will help you gather much more information than the one you used to have, such as: sociodemographic (e.g., population, gender, age, occupation…), socioeconomic (e.g., disposable income, unemployment rate …), commercial (average spending per category), or about the pedestrian traffic among others. Gathering all that data will help you get a lucid picture of your customers’ profile.
Increase your sales
Firstly, according to the profile of the customers that are coming to your points of sale or walking in front of it, they may be more interested in low cost products or, on the contrary, in more premiums ones; if they would like to receive any advice from the sales staff or shop by their own, etc. Thus, you need to adjust your product mix, opening hours, promotion strategy, etc. to their profile in order to maximise your sales.
Let’s take a practical example. Let’s say you are a fashion brand settled nearby an area full of offices. The target of your brand is adult women and you segment them by different age ranges. Taking into account your location and the information about the potential clients you have been able to gather up to now, it’s time to adapt. Indeed, the women working nearby are mainly between 25 and 40, have a high disposable income, are attracted by high end products and are working from 9am to 6pm in average. Knowing that, it will be better for you, in order to increase the company’s sales, to adapt your point of sale and its offering to them. That is why you need to select, among a large product offer, the best product mix to display to your potential clients and so. Following the same idea, you also need to adapt your shop window, sales service, working hours, etc. Being open when your target is able to come to your point of sale and having more salesmen around 6pm, for example.
In the end, deeply knowing your customers will help you tailor them the best experience in your point of sale and thus, spend more money than they were used to, which on your side means increasing your sales.
Improve your marketing
Gathering many data about your consumers is also very useful in order to improve your marketing campaigns and their return on investment. Indeed, once you know your audience (who they are, what they buy, for how much, how frequently, etc.) you will be able to tailor your marketing messages. Thus, you will be able to promote products they could be interested in, making discounts on other ones, etc. and creating a real attractiveness around your points of sale. Your target audience will then easily be reached with personalised messages.
Let’s take another specific example. As a restaurant, you may offer different kinds of menus depending on the season, such as lunch menus, dinner ones, kids’ ones… But let’s say you are a vegan friendly restaurant. According to the profile of your target audience, you know that they will be more tended to come to your restaurant by foot and that they are attracted by promotions. Knowing that, in order to attract those clients to your restaurants, you could do advertising in their neighbourhood or nearby their work and promote the special offers you are going to make for them. For sure after this, your reservation rate is going to increase.
Thanks to the data about your customers, you will also be able to do Geomarketing campaigns. Indeed, knowing where your customers are coming from, where they are living and where they are consuming, you can adapt the places where you advertise. In this case, using a Location Intelligence tool such as Geoblink can help you gather information about your clients’ location, visualise them on a map and take actions to improve your ROI.
Screenshot of Geoblink application showing where the consumers of a point of sale are coming from
As a consequence, you can make advertisement nearby their houses or work offices and thus attract them to the point of sale they are used to go, offering them a product mix adapted to their needs. In the end, all those methods can help you improve the Return On Investment of your marketing campaigns. Entering in the virtuous cycle in which the customers are better targeted thanks to Geomarketing campaigns, they will start increasing their purchases, leading to a boost in your sales, allowing more resources for marketing campaigns and so on.
In the end,, knowing your customer is a real added value for your company to increase your sales and marketing campaigns and once one is performing well, it is the entire business that benefits as well.