How Well Do you Know Your Customers? 13 Questions your Boss Expects you to Answer

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Your boss expects you to be able to answer all his questions and especially to know your customers. Here are the 13 things your boss is likely to ask you and a handy Checklist to prove to him that you know your customers better than he realises.

Everyone speaks about customer centricity and the importance of the customer, but just how well do you know yours – really? The following is a checklist of 13 facts you need to be able to answer in order to know your customers as well as you should.

As you read the post, keep tabs on your answers and share your final score below. I’m offering a personal 50% discount code to spend in store for everyone who publishes their score here in July 2018. And if you’re the boss, I’d love to hear how well you think your team would do – 100% of course, no?!

 

 

#1. Who is your customer?

C3Centricity how well do you know your customerOK I’m starting off slowly, but do you know who your customers are? Not who uses your category, but who the people are that actually buy your product or service today? How much do you really know about them?

Their age, gender and location are the basics, but there’s a lot more you need to know about them. Check out12 things you need to know about your target customers for more on what you need to know to be able to describe them in the depth your boss expects.

The C3Centricity 4W™ Template is a great resource for storing all the information you have on your customer. Download a free copy and watch the related videos HERE.

 

 

#2. What business are you in?

Although this refers more to the category than the customer, it is important to ensure you are looking at it through the eyes of your customers. Many organisations are working with industry definitions rather than customer ones. What about you? If you want to know your customers, you need to understand what category they think they are buying.

This is one of the essential elements you need to understand in order to know your customers deeply. It is something that many organisations don’t take the time to clearly identify, which results in an incorrect appreciation of their market and competitors. By not correctly identifying the category you are in, or plan to enter, your innovations will also lack the success you are hoping for.

Many organisations are working with industry definitions for their category rather than customer ones. They are losing sales! And you? #CEX #Customer #Category Click To Tweet

For instance, are you in the food business or the pleasure business, beverages or relaxation? One of my clients wanted to launch a fruit flavoured soft drink and thought they were competing with other soft drinks. When we worked together we discovered that they were actually competing in the energy drink business!

How many of your brands are not competing where you thought they were? See How to Innovate better than Apple for more on this topic.

 

 

So there’s my 13-point “Know your Customer” checklist to enable you to know your customers well enough to answer any question your boss may ask of you.

I suggest you go back to the top and revisit each point and answer them truthfully. By reviewing all 13 I am sure that your thoughts will have changed or at least been modified as a result of this new perspective.

And if you yourself happen to be the boss, why not ask your team how many they can answer? Let my know your score below; be the first to confirm that you can answer all 13!

 

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If you or your team can’t answer all 13 questions, I have a solution. Book a 1-Day Catalyst training session and be amazed at the progress & changes!

Check out our Latest Training Courses.icon

 

 

This post is based upon an article first published on C3Centricity in 2013.

 

 

How Well do you Know your Customers? Can you Answer these 12 Questions?

How well do you know your target customers? I mean really know them? Are they men, women, young, old, Fortune 100 companies, local businesses? If you can at least answer that, then you have the basics, but how much more could you know about them? Can you answer the following twelve questions?

I was recently working with a local service company who was looking for help with their online presence. They were keen to get more active on social media and had asked for advice about the best platforms, optimal frequency of publishing and possible content ideas.

C3Centricity how well you know your customers

However they were in for a surprise. Rather than getting straight onto the “sexy” topic of social media, I started by taking them through the basics of target customer identification. Lucky for them that I did! When we had finished the exercise, we had found five different targets for them to target, rather than the mere two they had been addressing until now. This clearly would have a huge impact on the where, what and how they communicated online.

These are the twelve questions that enabled us to brainstorm, identify and then complete a better and more complete description of their target customers. Their use also resulted in clear differentiated segments for their services – three more than they had originally thought!

How would you like to double your own market potential? Read on:

  1. WHO DEMOGRAPHICS: OK this is usually a “no-brainer” and is how most organisations describe their customers. Not really original and definitely not competitive, but still the essential foundation.
  2. WHAT THEY USE: Whether you are offering a product or service, you need to know what your customers are using today. And not only for your category, but in adjacent categories too. What do they use – if anything – if your product / category is not available?
  3. WHAT THEY CONSUME: Here we need to underst and what types of information and media they are consuming; what do they read, watch, listen to in their spare time. Which social media do they use, what websites do they consult on a regular basis?
  4. WHAT THEY DO: How do your customers spend their time? What type of lifestyle do they have? What are their hobbies? What do they do all day, and in the evening and at weekends?
  5. WHAT THEY BUY: This is where you describe their current category purchasing habits. How frequently and what quantity do they buy? Do they have regular buying habits? Do they do research before buying or repurchasing? Do they compare and if so how, where, why?
  6. WHERE THEY USE: Is the category consumed in home, in work, on vacation? With friends, with their partner, their children, with colleagues? Are there certain surroundings more conducive to consumption? What makes it so?
  7. WHERE THEY BUY: Do your target customers have certain places and times they buy? Is it an habitual or impulse purchase? Is it seasonal?
  8. WHERE THEY CONSUME: Today “consume” covers not just traditional media but new media as well. From where do they get information about products? From manufacturers, friends, family, colleagues? Do they access it online, in print, on radio or TV, at home or on the road? What websites and people do they follow, listen to and value the opinion of? What interests do they have in general and concerning the category?
  9. WHERE THEY SEE: One reason to target a specific group of customers is so that you can better communicate with them. Where are they most likely to be open to your messages; what media, what times, which days?
  10. WHY VALUES: What values do your customers have that you are meeting with your product or service, and explain why they are using it? Do they have other values that are not currently addressed, either by you or your competitors? Do these values offer the possibility of a differentiated communications platform or product / service concept?
  11. WHY EMOTIONS: What is the emotional state of your customers when they are considering a purchase or use, both of the category and the br and? Clearly identified emotions enable you to more easily resonate with your customers through empathising with their current situation. You are more likely to propose a solution that will satisfy their need or desire when their emotional state is precisely identified.
  12. WHY MOTIVATIONS: What motivates the customer to consider, buy and use their category and br and choice? Emotions and motivations are closely linked both to each other and to the customer’s need state. By identifying the need-state you want to address, you will be better able to underst and your customers and increase the resonance of your communications.

If you can answer all twelve of these questions in detail, then you certainly know your customers intimately. But before you sit back and relax on your laurels, remember that people are constantly changing and what satisfies them today, is unlikely to satisfy them tomorrow. Therefore you need to keep a track on all four layers of your customer description to stay ahead of competition, as well as to satisfy and hopefully delight your customers.

As mentioned above, by answering and completing a detailed description of the target audience for my client, we were able to identify a couple of new segments that my client’s services could address. Although their demographics were similar, their emotional and need states were quite different. This gave us the opportunity to respond with slightly different service offers for each group.

If you would like to try out this exercise for yourself, we have some useful templates that we make available to C³C Members. Why not sign up and get access? It’s FREE to join.

For more information on better identifying and understanding target customers, please check out our website: https://www.c3centricity.com/

C³Centricity used images from Dreamstime and Microsoft in this post.

This post has been adapted from one which first appeared on C³Centricity in April 2013.

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