How to Deliver Better Service with a Customer Analysis Report
If you want to grow your business, it’s important to conduct customer analysis. But how exactly can you do this? A customer analysis report will help you do the trick! In fact, using customer analysis may be what you need to take your business to the next level.
In this blog post, we’ll take a look at how to write an effective customer analysis report. Specifically, we will discuss how to:
- Identify your current customer base
- Find the problems of each customer group
- Understand the importance of products that add value to the life of your customer.
What is Customer Analysis?
Customer analysis refers to the process of collecting data about customers’ needs and wants. Customer analysis involves understanding what your customers want from you so that you can sell more of your product or service.
There are many benefits to understanding your customer, such as being able to sell more of what they want. Moreover, the gained information can be used to build better rapport with clients and customers, which leads to increased customer satisfaction and brand loyalty.
How to Conduct Customer Analysis (Step By Step)
There are a few main steps when it comes to conducting customer analysis. Here’s a little rundown before we dive deeper into the specific steps:
- Identifying and segmenting your current customer base is the first step in a strategy for customer analysis. Split up this group of customers into categories with similar traits and goals. You can also create a new audience of people that you want to target moving forward.
- In order to design products that will meet the needs of your customer, you must identify the problems and aspirations of each customer group. Think about any complaints these people would make on a daily basis. How can you improve their lives?
- The last step is to identify how your products can help solve the customer’s problems. The goal is to create products that create value and improve the life of your customer. This is also information that you will use in your marketing materials.
Step 1: Who Are Your Customers?
Successful companies take time to research their customers using a variety of methods. You must collect as much information as possible, even those little details that may not seem important. For example, take note of their gender, age, where they live, what they enjoy doing in their free time, the type of media they consume, and what companies they buy from.
You can conduct customer analysis through interviews or surveys, which allow you to collect detailed data. The only downside to using surveys is that there could be some bias. For this reason, you will want to use other research methods, like CRM (customer relationship management), which manages the customer data collected from sales and social media.
Step 2: Put Your Customers Into Different Groups
To make accurate conclusions about your customers, you should categorize them by different variables. Remember the following when segmenting your customers:
· Distinctive: There must be observable differences to define segments. Having segments that are similar will make customer analysis a confusing process.
· Size: A customer analysis report should identify the size of a market segment to understand what proportion of your efforts should be allocated to this demographic. It may not even be worth it at all.
· Cost: Estimating costs and expenses when marketing to multiple, separate demographic groups can be difficult, but it’s a vital task.
· Brand: This means that your marketing messages should be presented in a way that is attractive to each market segment. There’s a chance that your marketing efforts won’t align with all customer segments.
Step 3: Build Customer Personas
With the information you have gained so far in your customer analysis, you should now be able to create customer personas. You may even want to draw a picture of exactly what this person looks like, which helps with visualizing your target customer. Make sure to include the following:
· General demographic: This should include their age, gender, and location.
· Profession: What do they do for a job? What is their career path?
· Media: What are your customers’ favorite media publications, and which individuals do they follow most closely?
· The problem: What problems do they face in their daily life and how can your product help?
· Issues: What is stopping the person from buying your product?
· Message: What beliefs do they align with? How can you relate to this person?
Step 4: Analyze What Your Customer Needs
Once you know who your customer is, it’s time to analyze what they need and how you can best serve them. The key at this stage is to find out what their biggest problems are. You can do this by:
· Conducting a survey is helpful when you have enough participants. It will give a large overview of what that customer segment needs. There are a number of survey companies that will help keep the costs low.
· Study the percentage of past customers who have made a purchase related to your product.
· Use Reddit and Quora forums to research what your customers are complaining about.
Step 5: How Do Your Products or Services Help the Customer?
The first thing you need to do is make sure that your product or service meets the needs of all the customer types you want to reach. It’s time to put your thinking cap on as you dive into all of the information you earlier gathered.
It’s all about product benefits, not features. You may want to write a list of all the ways your product will help the target customer. This information can be used in your brand story, as well as other marketing materials.
This is where a lot of companies go wrong. You see, they focus on the cool features, rather than how the product actually helps the customer. Remember, the customer wants to know what’s in it for them, so make it obvious.
Performing customer analysis can help companies provide a service that meets exactly what their customer wants and needs.
To conclude, you should identify and segment your current customer base, identify the problems and aspirations of each customer group, and then create products that create value and improve the life of your customer.
CustomersFirst Academy offers comprehensive customer service training designed to help you grow your skills and advance your career.
To keep learning and developing your knowledge of customer service, we highly recommend the additional resources below:
Customer Analysis Simplified: Using Data to Understand Your Customers
10 Best Customer Experience Management Software Solutions
Customer Orientation: 10 Steps You Can Implement Today
Customer Insights and What They Can Do for Your Business