Detailed effective process of analyzing target customers

Analyzing target customers is one of the important tasks that any marketer must perform. Customer analysis results are the most accurate foundation to devise marketing strategies as well as improve product and service quality. So how to analyze target customers accurately and effectively? Let's find out with 1C Vietnam in the article below!

1. What is the target customer?

To analyze customer behavior accurately, businesses need to understand what their target customers are. Target customers, also known as Target Customers, are the target group that businesses target to focus resources on providing products and services. This is a group of customers who have needs and desires for the services and products of the business, and at the same time have the ability to pay for those products and services.

Identifying target customers is extremely important so businesses can focus their resources on reaching a group of potential buyers. By analyzing target customers , businesses will develop effective marketing strategies, creating suitable products or services to meet their needs. From there, profits were maximized and the company's market share also expanded rapidly.

2. What is target customer analysis?

Target customer analysis is the foundation of all marketing activities. This process includes techniques such as forecasting, data visualization, information management, and customer segmentation. This is the activity of researching and evaluating potential customers that a business or organization wants to reach, playing an important role in the process of product development, branding and increasing business profits.

To analyze target customers , businesses need to collect information about customers' characteristics, behaviors, needs and desires. Some commonly used valuable data include age, gender, geographical location, income, interests, lifestyle, education level, and psychographic factors.

3. Effective target customer analysis process

Each business or Marketing department has its own process of analyzing target customers . Below is the general process with basic steps for businesses to refer to and apply in practice.

3.1 Analyze customer portraits

Customer Persona is an effective tool that helps businesses have a clear picture of the target customers they are aiming for. Below are the steps to drawing a portrait of your target customer:

• Step 1: Administrators need to determine for what purpose customer portrait drawing is done? Some purposes include serving Marketing Communications campaigns, Product research and development, Building sales strategies,...
• Step 2: Collect data about customers through different sources such as interviews, surveys, data from social networking platforms,... Information to collect includes Demographics, Psychographics Learning, Habits, Behavior.
• Step 3: Based on the information collected, find similarities and differences between customer groups. From there, businesses will identify important factors that influence their purchasing decisions.

• Step 4: Draw a portrait of your target customer based on analyzed data. A complete customer portrait needs to ensure information such as name, image, story, needs, challenges, goals, reasons for choice, information channels and influence groups.

Note: Drawing customer portraits is an iterative process and businesses need to regularly update information, change, and adjust so that the results are accurate and consistent with reality.

3.2 Analyze the customer experience journey

Customer experience analysis is a method that helps businesses capture every step along the customer's journey to purchasing a product or using a service. The journey map will be created by interactive touch points from the time the customer first has a need to the purchase and post-purchase evaluation stages.

To build a customer's buying journey, businesses need to identify the following factors:

• The stages that customers go through when using a product or service such as awareness, interest, consideration, purchase, evaluation.
• Customer expectations at each stage include diverse search results, easy shopping, timely support, reasonable prices...
• Reasonable touch points at each stage, including Fanpage, Store, Website, Email, Message, Hotline,...

3.3 Analyze customer insight

Analyzing target customers through insight analysis is the core factor leading to a successful Marketing strategy. Customer Insight is considered the "heart" of Marketing strategy, a deep understanding of customers that businesses need to capture to reach them accurately and effectively.

Insight allows businesses to delve into the minds of customers, uncovering hidden needs and desires that they cannot directly express. From there, businesses can develop suitable products or services to meet customer needs to the maximum.

So how to analyze customer insight accurately?

• Collect data: Data on purchasing behavior, social network interactions, feedback from surveys, etc. are valuable sources of information for businesses to increase their ability to understand customers.
• Data analysis: Use tools to analyze data, identify trends and potential needs of target customers.

• Interpret results: Turn data into information that is easy to understand, has practical value and can be applied in practice.

4. The importance of identifying and analyzing target customers

So why do businesses need to analyze target customers ? What benefits can this activity bring to the company? Below is the importance of target customer analysis in businesses.

4.1 Optimize enterprise resources

When clearly identifying customers, businesses can focus resources on developing products and services that meet their needs. This helps avoid wasting resources on projects and strategies that are inappropriate or have low demand in the market.

4.2 Understand customers' needs and desires

Identifying target customers allows businesses to research and understand them better. This helps identify the needs, desires and challenges that customers are facing, as a foundation for product development and the creation of more effective communication messages.

4.3 Improve the effectiveness of Marketing strategy

When analyzing target customers , businesses will understand the outreach channels they regularly use. From there, marketers can choose appropriate communication channels and build marketing messages that better meet the needs and desires of customers.

4.4 Improve product and service quality

Analyzing target customers helps businesses understand customers' desires, thereby improving the quality of products and services to better meet these needs. Businesses can also develop new products based on the insights found to increase competitiveness.

4.5 Increase sales

When focusing on the right customers, the ability to convert will be higher, thereby increasing revenue and profits at the same cost limit. Besides, businesses can build long-term relationships with target customers, increase loyalty and motivate them to shop more.

4.6 Increase competitiveness

A business's target customer base is a competitive advantage, creating barriers for competitors in the same market segment. By providing differentiated products and services that suit the needs of target customers, businesses can create a deep impression in their hearts as well as attract more potential customers.

5. Distinguish between potential customers and target customers

One of the concepts that is often confused with target customers is potential customers. Both of these concepts refer to those who have the need and ability to pay for the business's products and services. However, when going into details, these two groups can be distinguished through the information table below:

Analyzing target customers is the foundation for developing general business strategies and marketing activities in general in the enterprise. Facing the rapid fluctuations of the market, businesses can use supporting software to analyze data and manage customer relationships such as 1C:Company Management. With specialized data management features, this is definitely an effective support tool in finding insights as well as maintaining long-term relationships with the business's target customer group. Contact 1C Vietnam immediately for detailed product consultation support.