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Aug 05

Why Building Consumer Profiles Is Crucial To Your Business

Here at Madak, it’s our job to make meaningful human-to-human connections that drive business growth. One of the key ways in which we accomplish this is by developing detailed consumer profiles that help us understand the people we want to connect with. No matter the type of business you own, here’s a look at why creating consumer profiles can be critical to the success and growth of your business.

One Size Does Not Fit All

Most businesses would like to believe that their product or service is for everyone. The reality is that, unless your product is toilet paper, there is a very specific type of consumer that accounts for most of your revenues. In fact, the Pareto principle suggests that as much as 80% of your sales will come from roughly 20% of your customers. This means that for every five customers, one will spend more than the other four combined. With these implications, and as customer acquisition costs continue to rise, it’s easy to see how trying to appeal to everyone can waste precious marketing dollars. Building consumer profiles is about discovering who that golden 20% of consumers are and putting your money where it counts.

Better Understand Your Customers

A fully fleshed-out consumer profile includes very specific details about who your ideal customer is. This requires some information that can easily be collected by sending out an email survey to existing customers. Great questions to ask are about their job, salary, marital status, hobbies, how they found you, and the problems they solve with your product or service, etc. The point is to gain insights that will allow you to create the fictional profile of someone that embodies all of the characteristics of your best and most frequent customers. This helps you understand their needs as a consumer, their pain points, their buying behavior, how to connect with them, and which platforms you may be able to reach them on.

Improve Your Marketing ROI

Well-written ads or blog posts aren’t enough to get people interested in your business unless they reach people on a personal level. That means that your message has to be relevant to their needs in order to convert well. A detailed consumer profile helps define exactly what those needs are and how to best present your solution. Having these types of insights can be powerful in helping you position your brand correctly, and it can even help guide the creation of future products or services. It may also help you make an informed decision about which platforms to run ads on. All of this translates to making better use of your marketing budget and better connecting with your target customers.

Putting It All Together

Building consumer profiles helps you swan dive into the minds of your customers and deliver more value than ever before. It helps you identify the 20% of customers that bring in most of your revenue and gives you a specific target to aim all of your marketing dollars at. It also helps you more effectively market and position your brand in a way that will resonate with people and build brand loyalty. To help you more meaningfully connect with your customers while getting the best ROI on your marketing budget, building consumer profiles is crucial to your business.

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