Customer Profiling and CRM

Customer Profiling and CRM

Do you know who your customers are? What do they like? How much do they spend with your business? How often do they use your services? What do they buy? These are all important questions, the answers to which can make a massive difference when it comes to maximizing the potential of your business.

Customer profiling is something that can help you with this and, when taken with robust CRM solutions, it could help you to boost your business.

What is customer profiling?

First of all, let us turn out attention to the question of what customer profiling actually is. The basics of it are all about building up a picture of who your customers are. For example, this could include data such as how they use your business and what they buy, as well as their demographic information (age, gender, education, occupation, income and so on) and geographic details (region, city).

You can use this data to build up information about the people who use your business, in order to get a better understanding of your customer base. CRM software can be used in order to keep track of all these details and make sure you have all the information you need to hand.

What should you consider?

When you are developing a strategy for customer profiling, there are a few things you should consider. For instance, what details are you going to focus on? As an example, you could choose to focus on customers who are good revenue generators for your business, either because they make occasional large purchases or because they buy from you regularly. You might decide to categorize people according to the types of products they have bought before – for example, which is your most popular product category? What sorts of people tend to buy from that range?

This is all information that you can feed into your CRM system when it comes to implementing other business strategies and maximizing your resources. We’ll find out more about this in the next section.

Implementing your strategy

Now we come to the issue of implementing your strategies: once you have organized all of your customer data and have built up profiles on the people who use your company, it’s time to make use of the information.

For instance, most CRM systems will come with good marketing tools that can help you design and implement campaigns. One option would be to decide to target a marketing campaign at a particular group of customers that you have put together based on your profiles. This could include promoting items to people who have bought similar things before, or promoting products to your ‘top end’ customers. You can use the marketing templates that are typically included in CRM software to help you manage this.

Overall, customer profiling is a useful way of gaining greater insight into your business. It can help you build more robust CRM practices and enable you to identify sources of potential development within your business, and so is definitely an avenue worth exploring.

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  1. Kit Singleton says

    You are absolutely right about the importance of building your customer relationships. In order to do this successfully you do need to have an idea of their likes, dislikes along with other in-depth info. Once you have this profile of your customers, you are able to increase your business profits as well as provide them with the exact products and services they are looking for.

  2. Sandro Jakonia says

    Nice article, I completely agree to you, good customer management means that you must know what your customers want, this way you can build your future plans

  3. Sandro Jakonia says

    I completely agree with you,  personally I think that customer profiling is the most important part of customer management, with it you can improve your strategies and this way get more satisfied customers = more profit – what else do we need?