In the era of Big Data, businesses are increasingly inundated with customer data but often lack a basic understanding of who their customers are. Luckily, data-driven analytical solutions can help businesses gain a comprehensive understanding of their customers to provide a more meaningful (and longer-term) engagement with their customers. Customer demographics provide businesses a rich profile of the unique characteristics of their customers and play a vital role in developing an understanding of exactly who they are.
Due to changing market conditions and an ever-growing competitive marketplace, businesses have a continuous need to adapt. Customer data represents one of the greatest assets to address this challenge. Data-driven analytical solutions leverage customer data to deliver key strategic insights that can provide a competitive edge over their competitors.
Recently, a national menswear retailer wanted to further grow their business and realized they had a limited understanding of who their customers are. They started by conducting a demographic profile analysis of their current customers.
This comprehensive profile detailed the individual, household, and residential characteristics of their customers and compared these characteristics to non-customers that live in the same geographic areas.
Their customer demographic profile revealed:
• Most of their customers are male (not surprising)
• Over 50 years old (71%)
• Most of their customers are married (84%)
• Have an average household income of $185,596 (compared to the national average of $105,549)
• Have an average home value of $326,141 (compared to a national average of $116,612)
From this profile, the retailer had a better understanding of who their customers are: males, over 50 years old, married, with higher than average incomes, and living in homes with higher than average values. These insights were leveraged across their entire operation to better inform their decisions. The merchandising team tailored their product mix towards the needs of older, married, mid to upper income clientele. The customer service department offered new services with a better understanding of their customers’ needs. The retailer’s marketing team changed the focus, content and tone of their messaging to create a higher-value level of engagement with their customers.
By harnessing the power of data-driven analytical solutions, the retailer was able to drive new growth and, ultimately, create lasting brand loyalty. It all begins with knowing your customers.
To learn more about Valid’s data-driven analytical solutions, please contact Brenda McGowan, Account Manager of Data Solutions, at 630.742.8062 or write [email protected].