Customer Profiling

Know your ideal buying customers

What is customer profiling?

Customer profiling is the method of grouping customers based on similar characteristics or personas. Generally, these characteristics include three things: Demographics, psychographics, and buying behaviours.

Demographics means the statistical description of their socioeconomic information. Mainly, it includes their gender, age, race, education, employment, income, and marital status.

Psychographics refers to customers’ psychological attributes. Some of these are their values, attitudes, aspirations, interests, and opinions. Examples of such traits are customer lifestyles, social status, food habits, or beliefs about certain subjects.

Buying behaviour is how customers make a buying decision. Above all, it reveals their attitudes toward their purchases. This includes their preference for the product price, quality, channels, discounts, promotions, and so on.

Why is customer profiling important?

Customer Profiling reveals crucial insights about your customers. These insights then help you to identify the right customers for your business. When you have identified your target customer, you know their needs and wants. Thence, it enables you to design bespoke offerings to satisfy their needs in a timely manner. Your customers love tailormade offerings. This results in customer loyalty and retention.

Additionally, you can use these insights to design personalized marketing strategies. This can result in more customers buying more frequently, and of higher value.

Thus, Customer Profiling helps you to grow your business.

Customer Profiling Case Study for a Retail Business


A retail firm trading in home and kitchen electronic appliances and apparel all over India and abroad


The client’s revenues stagnated despite employing multiple sales channels to sell their products.


The client wanted to know the most effective geographies, channels, and salespeople with respect to annual sales.


Our detailed analysis revealed huge variations in channel and product performance. So, we performed multivariate analysis to understand specific performance gaps. Subsequently, we worked with the client to develop channel-specific strategies for sales growth.


The study helped identify the top 24% of their core products that brought 85% of their revenues. Accordingly, we recommended a new product mix for sales growth.

The study benefited the client identify the most effective channels vis-a-vis their core products. It also recognized the need to diversify into retail businesses related to their core products.

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