ºÚÁÏÃÅ

How to Create Customer Profiles for an Ecommerce Store

Whether its word ofÌýmouth, direct selling, orÌýaÌýsophisticated automated advertising campaign, every successful sale starts with successful marketing.

Before your customers can take aÌýdrink, someone somewhere’s gotta show ’em theÌýwell. SoÌýifÌýyou’re not seeing theÌýkind ofÌýsales you want, re-evaluating your marketing isÌýaÌýsmart first step.

The key toÌýgreat marketing lies with two simple questions: who are your customers andÌýwhy doÌýthey buy?

Thousands ofÌýe-commerce stores around theÌýworld struggle with marketing andÌýproduct development because they don’t adequately understand their target audience.

ToÌýsell better, you have toÌýlearn toÌýmarket better. ToÌýdoÌýthat, you need toÌýdig deep into defining your audience. That’s where customer profiles come in.

71% ofÌýcompaniesÌýthat exceed revenue andÌýlead goals have documented customer profiles.

Customer profiles identify who your target customers are, what they care about, andÌýwhere toÌýfind them. InÌýthis post, we’ll show you why customer profiles matter andÌýhow toÌýcreate your own forÌýyour e-commerce store.

How toÌýsell online
Tips from e-commerce experts forÌýsmall business owners andÌýaspiring entrepreneurs.
Please enter aÌývalid email address

What isÌýaÌýCustomer Profile?

InÌýmarketing speak, aÌýcustomer profile isÌýaÌýfictional biography ofÌýyour target customer(s).

Think ofÌýitÌýasÌýaÌýbrief document explaining theÌýwho, what, andÌýwhyÌýof your ideal customers.

´¡²ÔÌýin-depth customer profile will not only help you define your marketing strategy but will also help you when you’re developing new products orÌýfine-tuning your customer service approach.

InÌýmost cases, theÌýbigger your product catalog, theÌýmore profiles you’ll have toÌýtarget. For example, anÌýathletic-wear store selling specialized clothing forÌýpowerlifters might only have 2-3Ìýcustomer profiles.

Where aÌýstore like Amazon, onÌýtheÌýother hand, might have hundreds, even thousands ofÌýtargeted profiles.

Broadly speaking, customer profiles are based onÌýtwo things:

1.ÌýDemographic data

Factual information about theÌýcustomer that defines who your buyers are.

This includes data such asÌýtheir:

2.ÌýPsychographic data

IfÌýdemographics explain “who” your buyer is, psychographics explain “why” they buy.

This information might include your buyer’s preferences, hobbies, spending habits, andÌývalues.

What’s their lifestyle like? What kind ofÌýopinions doÌýthey hold? All this information falls under psychographics.

IfÌýyou dig deeper, psychographic information can also include details like:

This isÌýtheÌýinformation you need toÌýunderstand who’s buying what you’re selling.

That being said, there’s also aÌýlimit toÌýwhat you need toÌýknow. Make sure theÌýinformation you collect isÌýrelevant toÌýwhat you sell.

For example, ifÌýyou’re selling boxing gloves, you probably don’t need toÌýknow what brand dog food your customers prefer. But ifÌýyou’re selling, let’s say sustainably-sourced dog toys, what brand dog food they prefer would beÌýaÌýrelevant question.

Customer profiles help you reach andÌýcommunicate with theÌýright audience. IfÌýyour target audience isÌýmiddle-aged female doctors, where andÌýhow you market your products will beÌývery different than ifÌýthey were teenage male gamers.

Why Develop Customer Profiles?

There’s plenty ofÌýevidence toÌýshow that using customer profiles can help you make more money andÌýserve your customers better.

According toÌý, using marketing profiles makes websites 2-5Ìýtimes more effective andÌýeasier toÌýuse forÌývisitors inÌýtheÌýtarget audience.

Another study byÌýCintell found that businesses with documented profiles frequently exceeded their revenue goals.

Specifically, there are 3Ìýmain reasons why you should develop customer profiles.

1.ÌýYou’ll get better conversions

This one’s pretty straightforward: ifÌýyou know what your customers like, you can send them content andÌýoffers they’ll engage with.

Targeted content andÌýpromotions can help you convert more visitors toÌýsubscribers, followers, andÌýcustomers.

For example, Skytap implemented aÌýtargeted content marketing strategy andÌýsaw aÌý.

You can use information from customer profiles toÌýsend more personalised emails andÌýdirect messages which will inÌýturn improve your lead quality andÌýgenerate better customers.

2.ÌýYou’ll develop andÌýsell better products

Think about all theÌýtimes you’ve gone out toÌýbuy aÌýgift forÌýyour friend, mom, great aunt Brenda, etc. IfÌýyou were close toÌýthat person, itÌýwas probably aÌýlot easier toÌýpick out theÌýright gift. Customer profiles work theÌýsame way.

With theÌýhelp ofÌýprofiles, it’s much easier toÌýbuild andÌýoffer theÌýright products because you already know what they want andÌýneed.

You can even find real customers that match your profiles toÌýcollaborate with onÌýnew products andÌýopportunities. They’ll help you identify problems andÌýchallenges, then you can beat your competition toÌýtheÌýpunch with new solutions forÌýyour industry.

There’s even aÌýgood chance they’ll stay customers longer because your products andÌýservices will beÌýtailored toÌýtheir needs.

Also read: How toÌýCreate aÌýProduct Prototype

3.ÌýItÌýhelps you understand where your customers are spending time

When you understand theÌýbackground ofÌýeach ofÌýyour profiles, itÌýwill help you understand where your customers spend most ofÌýtheir time online andÌýwhat online channels doÌýthey use.

This, inÌýturn, will help you optimize your marketing spend.

For example, ifÌýyour data shows that your customers prefer Instagram over Twitter, you can shift your marketing spend toÌýfocus more onÌýtheÌýformer.

Related: How toÌýFigure Out Where toÌýSell Your Products

How toÌýDevelop Customer Profiles?

We’ve established how crucial customer profiles are forÌýanyÌýe-commerce store, but how exactly doÌýyou goÌýabout making one?

Understand that customer profiles can beÌýasÌýbasic orÌýasÌýcomplicated asÌýyou want. There are noÌýhard andÌýfast rules.

What’s matters more isÌýhow effective they are atÌýcreating aÌýclear picture ofÌýwhat drives different types ofÌýcustomers toÌýyour services.

ToÌýstart off, think about modelling profiles based onÌýyour available qualitative andÌýquantitative research focusing on:

IfÌýthis sounds like aÌýhandful, don’t worry, we’ll show you exactly how toÌýget this data forÌýdeveloping your own profiles.

Step #1: Conduct surveys toÌýget customer insight

NoÌýone knows your customers better than themselves.

This isÌýwhy theÌýfirst step inÌýcreating customer profiles isÌýtoÌýconduct surveys.

InÌýfact, inÌýone survey ofÌýmarketers (for B2B companies), surveys ranked asÌýtheÌýthird most important method forÌýcreating buyer profiles.

Your objective here isÌýtoÌýget inside theÌýcustomer’s head toÌýmake sure profiles are based onÌýwhat real people think.

Before you start, it’s aÌýgood idea toÌýsegment your customers into three groups:

There are multiple ways toÌýreach different customer segments identified above.

For existing customers, theÌýbest way toÌýreach them isÌývia email. You likely already have their email address onÌýfile. Just send them anÌýemail with aÌýlink toÌýyour survey, like this:

For site visitors, you can use aÌýnumber ofÌýdifferent tools toÌýask questions.

For example, you can create aÌýpop-up survey using aÌýtool like Qualaroo:

Ìýallows you toÌýhave aÌýsingle question pop upÌýonÌýyour site atÌýaÌýdesignated time. ItÌýworks especially well when you want toÌýfind out why your customers are not completing their purchase.

You can also use aÌý“Hello Bar” atÌýtheÌýtop ofÌýyour page toÌýlink toÌýyour survey, like this:

For non-visitors, theÌýbest way toÌýreach them isÌýthrough Facebook.

ToÌýfind such users, log into Facebook andÌýgoÌýtoÌýCreate Ads.

Here, goÌýtoÌý“Audiences”.

Next, click onÌý“Create Audience” andÌýselect “Lookalike Audience”:

°¿²ÔÌý³Ù³ó±ðÌý²Ô±ð³æ³Ù pop-up, select your Facebook page andÌýtarget country. You can drag theÌýaudience size slider around toÌýincrease/decrease your range.

This will create aÌýnew custom audience that matches your existing Facebook fans. IfÌýyou already got some traffic inÌýyour online store, add theÌýFacebook pixel toÌýcollect aÌýLookalike audience that matches people who have made purchases onÌýyour site.

You can then send them aÌýlink toÌýaÌýsurvey like this with anÌýincentive toÌýtake part:

Fortunately, you have more choice than ever when itÌýcomes toÌýcreating surveys today. Here are aÌýfew options:

Here comes theÌýmeat andÌýpotatoes ofÌýthis sectionÌý— theÌýactual questions toÌýask inÌýyour survey.

The questions can range anywhere between 7ÌýtoÌý20. Design andÌýcategorize them inÌýsuch aÌýway that you insights based onÌýtheir behavioural drivers, obstacles toÌýpurchasing andÌýmindset.

The exact questions you ask may change from industry toÌýindustry, but theÌýend goal remains theÌýsameÌý— getting actionable information that serves your needs.

Here are some examples ofÌýquestions that you may consider including inÌýyour survey:

Demographic questions:

These are theÌýmost basic questions that you should beÌýasking your target customers, such as:

Education questions:

Our early school andÌýcollege education help usÌýshape asÌýadults. People usually tend toÌýanswer these questions more honestly.

Career questions:

Questions about theÌýworking life ofÌýyour prospects reveals aÌýlot ofÌýinteresting details about them.

Financial questions:

Your customers finances will tell you what they can afford andÌýhow easily they make their purchasing decisions.

Keep inÌýmind that people tend toÌýanswer financial questions incorrectly, even inÌýanonymous online surveys. Some might even construe this asÌýanÌýinvasion ofÌýtheir privacy. Temper your results accordingly (usually byÌýdecreasing theÌýstated average income).

Step #2. Interview customers toÌýunderstand psychographics

Conducting one onÌýone interviews can provide invaluable information into your prospect’s buying habits andÌýwhat motivates themÌý— information that’s easily missed with surveys.

This could beÌýanÌýexpensive affair, but totally worth it. Not only will you develop better customer profiles, but you’ll also get toÌýunderstand your customers atÌýaÌýfundamental level.

Your existing customer base isÌýtheÌýperfect place toÌýstart with theÌýinterviews because they have already purchased your product andÌýknow about your business.

ToÌýget better results, narrow down your interviewees into two groups:

Surprisingly, your “bad” customers will often tell you aÌýlot more about your problems than your “good” customers.

Also, look forÌýprospects, referrals andÌýthird party networks toÌýget some interviewees onÌýboard.

AsÌýyou reach out toÌýpotential interviewees, here are aÌýfew tips toÌýrecruit interviewees:

Here’s anÌýexample ofÌýanÌýemail Quora sent out toÌýaÌýfrequent contributor:

Here’s another example ofÌýanÌýemail toÌýyour “bad” customers courtesy ofÌý:

While these examples might beÌýfrom B2B businesses, you get theÌýideaÌý— beÌýhumble, honest andÌýmake theÌýprocess easy toÌýget interviewees onboard. Treat interviews like conversations. Assume theÌýprofile ofÌýaÌýfounder just trying toÌýrun aÌýbetter business. You’ll beÌýsurprised toÌýknow how many people will beÌýhappy toÌýhelp when you reach out.

Nonetheless, here are aÌýfew tips you can follow inÌýyour interviews:

IfÌýyou can doÌýthis, you’ll have aÌýtreasure trove ofÌýsubjective data toÌýunderstand your customers.

Also read: How toÌýWork With Focus Groups toÌýTest Your Niche orÌýBusiness Idea

Step #3: Back upÌýwith analytics data

The final step isÌýalso theÌýeasiest: find data from your analytics tool toÌýbackup theÌýfindings from step #1ÌýandÌý#2.

IfÌýyou have Google Analytics, you can get quite aÌýbit ofÌýdata about your visitors’ location, age, technology usage, etc.

ToÌýfind this data, log into Google Analytics. Then goÌýtoÌýAudiences.

Here, you can find location, language andÌýtechnology data. You can also get interests, age andÌýgender data under “Demographics”.

For example, here’s what your “Location” data might look like:

Another tool, , might not have data onÌýyour site, but there’s aÌýgood chance itÌýhas your competitors’ demographic data.

ToÌýfind this data, goÌýtoÌýQuantacast.com andÌýclick onÌý“Explore”. Next, type inÌýyour competitor’s’ URL inÌýtheÌýsearch box that pops up.

There’s aÌýgood chance Quantacast might have not quantified your competitor’s profile. IfÌýthat happens, just move onÌýtoÌýanother competitor until you get aÌýpositive result.

For example, here’s theÌýdemographic data forÌýTMZ.com:

Use this data toÌýcorroborate your findings from theÌýearlier steps. For example, ifÌýyour survey showed that 90% ofÌýyour customers are married, your demographics data should reflect that your visitors are older (since 18-24Ìýyear olds have low marriage rates).

Step #4: Create customer profile

InÌýthis final step, you’ll use theÌýdata you’ve collected soÌýfar toÌýcreate aÌýrough sketch ofÌý3-4Ìý“ideal” customers.

You don’t have toÌýgoÌýfancy with thisÌý— aÌýsimple Word doc will suffice. However, attaching aÌýname andÌýaÌýpersonality toÌýeach customer profile (such asÌý“Frugal Fred” forÌýaÌýbudget customer) makes itÌýeasier toÌýremember.

Ìýto create aÌýmore “visual” profile.

After signing up, click onÌý“User Persona” toÌýget started.

Edit theÌýtemplate based onÌýyour data:

Your final result might look something like this:

CongratulationsÌý— you just created aÌýcustomer profile forÌýyour e-commerce store!

Your Next Steps

Customer profiles will help you identify your audience andÌýsolve their problems.

ItÌýisÌýimportant toÌýremember your profiles will keep evolving andÌýchanging asÌýyou discover more information about your customers andÌýwhat motivates them.

Don’t beÌýsurprised ifÌýyou discover entirely new profiles asÌýyour business grows.

Here are your next three steps:

  1. Create aÌýsurvey andÌýsend itÌýout toÌýyour existing customers
  2. Select 10Ìýeach ofÌýyour best andÌýworst customers andÌýinvite them forÌýanÌýinterview
  3. Create aÌýrough customer sketch based onÌýfindings from your interviews andÌýsurvey.

Ìý

About The Author
Jesse is the Marketing Manager at ºÚÁÏÃÅ and has been in e-commerce and internet marketing since 2006. He has experience with PPC, SEO, conversion optimization and loves to work with entrepreneurs to make their dreams a reality.

Start selling on your website