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Please read this article about “customer profiling” summarize it and write a paragraph or 2 that consists of 300 words about it.
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exp erienceux Home Services Clients About Ux Blog Careers Contact Sometimes questions are important more than answers CX What is customer profiling? our
enceux Home Services Clients About UX Blog Careers What is customer profiling? Customer profiling is a way to create a portrait of your customers to help you make design decisions concerning your service. Your customers are broken down into groups of customers sharing similar goals and characteristics and each group is given a representative with a photo, a name, and a description. A small group of customer profiles or personas are then used to make key design decisions with, eg which of these features will help Mary achieve her goals most easily?
Customer profiles are a useful design tool Customer profiles are customer types, which are generated to represent the typ/cal users of a product or service, and are used to help the project team make customer centred decisions without confusing the scope of the project with personal opinion Also known as personas, customer profiles are created from an understanding of the typical audience generated from customer research, and focus on the different goals and scenarios the customers might find themselves in when interacting with a specific touch- point (website, catalogue, shop floor etc.). Unilike typical demographics or segmentation, differences in geography, income, status, etc. do not necessarily split customers into different groups. For example, when looking to buy the latest CD by The Kooks for a nephew, a 24 year old single mother of three living in the south of England will use Amazon in the same way that a married 53 year old senior executive living in the north of England would do. Their goal is the same, to buy a specific CD online quickly and easily When creating a profile the critical information needed for each user is their goals (why are they interacting with the touchpoint?-to buy a CO), their tasks (what will they be doing when they interact with the touchpoint-browse for The Kooks CDs, purchase the latest CD. arrange delivery to a different address?), and the touchpoint goals (to sell CD, clearly show which of The Kooks CDs is the latest, cross and up sell etc) For the example abbve,in a very loose manner you might create a profile called Jane, who is 31, married, has three young children, is time-poor, and needs to buy The Kooks CD online, but doesnt know who The Kooks are or what their latest CD is called. Jane will represent all the users who want to buy a specific product but are unsure of all the details Advantages of customer profiling
Advantages of customer profiling Most projects evolve from an idea,.and grow through the opinions of infuential members of the project team. The trouble influential members of the project team are rarely the end user or customer. This often resuts in a product or service that doesnt quit meet customer expectations or needs, and the interaction with it might be clumsy, Similarly, the decisio due to a clash of different opinions, with no member of the project team able to make a definite agreement on whether x this project. -making process can be delayed or Y is best for when the project tearm is discussing the scope. or making desgn decsions they can talk about whether Janes needs and expectations are being met, regardless of what the influential project team member might deem as a cool piece of functionality Disadvantages of customer profiling Traditional marketers often react negatively to the suggestion of customer profiling because it does not cater for the standard demographics that are traditionally used and taught. However,in this situation it is important to explain that profiles are not designed to replace general marketing demographics, which are used for Macro marketing and advertising campaigns, but are created for the specific touchpoint (website, kiosk, catalogue, etc.) as a design tool for the project team to make better decisions.
UX Blog Careers Contact Disadvantages of customer profiling Traditional marketers often react negatively to the suggestion of customer profiling because it does not cater for the standard demographics that are traditionally used and taught. However, in this situation it is important to explain that profiles are not designed to replace general marketing demographics, which are used for Macro marketing and advertising campaigns, but are created for the specific touchpoint (website, kiosk, catalogue, etc.) as a design tool for the project team to make better decisions. Conclusions Customer profiling should be undertaken to provide information and inform the project team about the end users and/or customers to allow project decisions to be made from the typical users perspective, or to assist the project team in making customer-centred design decisions, which will result in a product or service that better meets the customers needs and expectations, and is therefore more likely to succeed. More UX Methods Questions
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Customer profiling is good way of creating information database of customers needs, preferences and buying behaviour patterns and average consumption .

It helps marketers to deflect conflict management in teams and come to definite conclusions And helps in faster rollout and execution of product. Also helps in complete customer based marketing and saves considerable cost to achieve profitability and lower customer acquisition cost as well as lower turnover rate.

However the downsides of this method are marketers cannot adopt segmentation methods and it becomes difficult to market at particular customer touchpoints .

However all in all its great tool for revenue generation and profit maximization.

To understand this we can compare two business Models of Walmart and Target which use Custimer profiling albeit in different ways.

Walmart focusses on lowest cost and product discounted offer model with high specific focus on pricing structure and product availability through strategic acquisition of rivals. Walmart is best known for its Supply Chain management and distribution and catering different customers based on profile.Walmart adopts penetrative pricing to remain competitive in market with lowest rates.

Target majorly focusses on collaborating and investing with private label brands and focusses on quality of products with premium skimming and pricing towards luxurious range of product depth and width. Target is more known for its Total Quality management as well as customer profile management as Target focuses on premium pricing and relatively superior positioning to cater to high end customers .

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