Customers play the most role in every business. In fact, a business can never be successful without the contribution of customers. Businesspersons are therefore required to establish a strong customer foundation through the help of customer analysis.
What is Customer Analysis?
A customer analysis provides business owners with in-depth information about their current and prospective customers. This information is crucial as it helps the business people plan and determine the future direction of their businesses. While writing a customer analysis, one is often required to reflect upon the business through customer interactions, feedbacks, and comments.
Components of Customer Analysis
An exhaustive customer analysis should take care of the three components, as mentioned below.
Regardless of the type or age of your business, it is always important that you identify and define your customers, respectively. Therefore, you should always include the descriptive characteristics of your existing and prospective customers. This should be based on demographics, geographic, psychographic, customer interest, and how they prefer getting information. Once you have identified who your customers are, then you can move to the other component of customer analysis, which is defining their needs.
Define your customer’s needs
Defining your customers’ needs is important as it helps you know whether or not your products/services meet their needs. Also, it helps you to make necessary adjustments so as to meet those needs fully. The following questions will help you know what your customers are craving.
- What are your customer’s hopes and fears?
- Are your customers affected by quality, price, or uniqueness?
- Do your customers complain about your product/service?
- What are their recommendations?
There are plenty of ways by which you can get responses to your questions. This includes:
- Asking potential customers your concerns
- Considering past actions such as the percentage of customers that bought a similar product.
- Looking at questions posted on the Quora website
- Joining professional social media platforms such as linked in
- Lastly, using social intelligence software to determine issues faced by customers.
Determining product-customer fit
Here, you’ll basically make plans on how to meet the customer’s needs. Whether your company/business is new or well established, it is always recommended that you provide products or services that meet the taste of your customers.
Also, this section should be a matter of discussion and brainstorming on solutions that can address customer needs. Solving problems that customers experience will definitely resonate with them in the most appropriate way, therefore, boosting your business enterprise.
What to Include in a Customer Analysis
- Your market segmentation
- The age range of your current and prospect customers
- The lifestyle of your customers
- The number of potential customers
- Customer base
- Purchase history of past and existing customers
In order to make everything easy for you, we have provided a free template that helps organize your thoughts into one place. Also, the template provides you with the recommended format for writing your customer analysis report.
Customer Analysis Questions (PDF)
This one is used for showing customer profitability. This customer analysis template explains how a business can profit from customers; if the business follows certain guidelines to meet the customer’s needs.
Consumer Analysis Report Example
This one is about customer feedback. It explains why customer feedback is always needed for businesses to improve.
Customer Analysis & Marketing Plan Template
This one is used to analyze customer service. It shows how each employee or manager directly relates to customer service. The employees will be the first ones expected to handle customer service needs; and then the managers and CEO.
Customer Analysis Template
Conclude your customer analysis report by re-evaluating your current business strategy to ensure they meet the needs of your customers.