CUSTOMER PROFILING

FOR RETAIL
CONTENTS

• Introduction to Customer Profiling

• Customer profiling
• Challenges
• Importance of customer profiling
• Application of customer profiling
• Conclusion
Introduction to Customer Profiling
● What is Customer profiling?
● Need for Customer profiling
Customer Profiling
● Data Collection
● Data cleaning
● Data Analysis
● Inference
 Data Collection
Explain the different methods of data collection folowed by what
types of data to be collected.
Demographics - Age,Gender,Income level,Education,occupation
Psychographics - Lifestyle,Interest,Values,Attitudes
Behavioral pattern - Brand loyalty,product usage,Purchase
history,Online activity
Technographic - Customers' technology preferences, usage patterns,
and digital behavior.
Data Cleaning
● Data organization
● Data exploration
● Standardizing data format
● Remove Duplicate entries
● Data consistency
● Data Validation
 Analysis
● Once we get data on Demographics, Understanding data distribution using
simple statistical techniques
● Visualize those raw data into charts to identify trends,pattern and outliers.
● Perform demographic segmentation to group customers based on similar
demographic characteristics.
● Explore relationships between demographic variables and other variables
of interest (e.g., Purchase behavior, product preferences, Month of visit)
● Same concept with some minor tweaks will be explained for
Psychographics, Behavioral pattern, Technographic
Inference
Once all the data’s are collected you need to merge all data representing different
customer behaviours and get the inference in following ways.
For example Let’s assume that we bucketed your customers into these 3 categories
"Tech-savvy millennials", "Budget-conscious families", "High-value fashion enthusiasts"
Further RFM analysis will be done for above categories to arrive who is our potential
customer
How much these proportions contribute to overall customer base.
Self retrospection
1. Is this our customer base we intend to target?
2. If not, how do we target them?
3. Is there any other opportunity to capitalize on?
4. What type of products to sell vs not
 Plan of Action

● Strengthening your target audience

● Focus on actionable segments which require minimal investment
and thus improving sales
● Forecast future trends through customer profiling to stay one step
ahead of customers
● Maintain a dynamic approach
 Challenges in Customer Profiling
● Data Quality and Availability
● Privacy and Compliance
● Data Integration and Fragmentation
● Dynamic and Evolving Customer Behavior
Benefits of Customer Profiling
● Personalized marketing strategies
● Customer Experience Enhancement
● Enhanced product development
● Increased customer loyalty
● Impact on Product Assortment
Conclusion
● Summary of key points
● Importance of Customer-Centric Strategies
● Empowering Data-Driven Decision Making