Customer Analysis: The other side of the analysis coin

Like Competitor Analysis, Consumer or Customer Analysis plays an important role in understanding the comings and goings of your industry, not to mention understanding where your customers are at! Customers make businesses go around so understanding them is pretty vital in keeping your business competitive.

What is Customer Analysis?

In short, using data to learn more about new or existing customers. Data plays a massive role in business, being an extremely effective tool to leverage in business decisions, new strategies or campaigns and customer analysis being no different! 

Where this data comes from can vary, but the more you have, the better. Data gathering can look different depending on your organisation. Depending on the size and resources available, this process could be in-depth interviews, focus groups, social media analytics, surveys or existing feedback. For those short on time, you can rely on the resources you have to conduct your own outbound research through emails or engagement ads designed to gather information. And for smaller day-to-day decisions, you can even scale this back to analysing social comments or email replies to gauge the room temperature. Although, we wouldn’t recommend this for big decisions!

Why is Customer Analysis important?

Customer Analysis helps feed into customer experience, and as we all know, to keep your business going, you need to continue to meet their needs. Ensuring your pricing, products or services are competitive plays into this and customer analysis is the way to gain this knowledge. Understanding who your customers are, what they do, what they want, and what they come to you for allows you to adjust your business strategy, plan a new campaign or even roll out a new product or service to suit their needs. 

For some, customer analysis may not seem necessary, particularly if your product offering is essential or there are limited services in your area - it’s a given that people come to you right? Even so, we’d highly recommend getting into your customers' brains to deliver a better experience that will keep them coming back and open up more opportunities.

What does customer analysis let you do?

Customer analysis is a powerful tool and here are some more great ways it benefits you and lets you do business better.

  • Communicate better with your customers
    Knowing who you’re talking to, what they want and what their needs are will help you in day-to-day conversations as well as communication across other channels. And speaking of other channels…
  • Target more closely
    Knowing the ins and outs of your customers is to your benefit when it comes time to send out segmented emails or select targeting options on your Facebook, LinkedIn, Google, or Programmatic.
  • Create more effective ads
    Armed with this new knowledge, you can create more effective ads and campaigns, letting what you now know shape your creative.
  • Identify more opportunities
    We’ve mentioned that customer analysis comes in handy for new products a couple of times, and this is how. By listening to your customers, what they want and need, you can pinpoint new products or services. Finding gaps in the market or your offering are opportunities for you to seize and make the most of. 

By incorporating customer analysis, or even elements of this, you can ensure your business continues to meet your customers needs. Want to talk through how customer analysis can work with your business? Book a callback and talk to a Yellow Expert today!