What is customer profiling and why is it so popular today?

Also known as “customer profiling”, customer profiling is to be considered an analytical strategy used today by many companies. Aimed at anticipating the needs and preferences of customers in its principle, it involves in particular the collection and analysis of data.

How does customer profiling work in practice?

As we mentioned in the introduction, the profiling process begins with collecting data from various sources. This includes, among other things, direct interactions with customers, online behaviors, and what can be found on social networks. 

This information is then dissected to distinguish examples and patterns. Thanks to these, you will be able to highlight valuable insights into your customers' behavior.

For example, by using customer profiling wisely, a company can identify a segment of customers who prefer to buy eco-friendly products and are sensitive to green marketing campaigns. With all this in mind, it can then carry out targeted campaigns with personalized products while taking care of its communication. Yes, it is rather formidable!

Why is customer profiling crucial today?

We are evolving in a society that has changed a lot in recent years and we must be aware of this. Consumers are now bombarded with information and options of all kinds. To capture their attention, it is therefore necessary to identify their individual preferences thanks to their purchasing history, among other things. In other words, if you launch a classic marketing campaign that aims to reach the greatest number of people, it is very likely to have an extremely low conversion rate.

If customer profiling has become so important, it is because it allows companies to stand out by adapting an original approach to specifically meet consumer expectations. This translates into increased conversions, increased loyalty, and improved marketing effectiveness. Customers are not left out on their side since they will receive more relevant offers, which makes them want to go further with the brand.

Some tips for setting up effective customer profiling

To take full advantage of customer profiling, you’ll need to follow some tried and true practices. Here’s a quick list of tips that should get you on the right track: 

• Make sure to collect data from all possible sources. To be able to best understand customers by developing very precise profiles, nothing should be left to chance with this strategy. For example, we see that some companies put social networks aside, which is typically a mistake in our opinion.
• Act in compliance with regulations. Before diving into customer profiling, check that the tools you use are compatible with the GDPR in Europe. Otherwise, you could be exposed to heavy fines.
• Use cutting-edge technologies. In 2024, artificial intelligence and machine learning are booming, so be up to date to avoid being left behind!