On the previous article, I wrote "you
can find a clue to improve sales by looking at purchase tendency and buying
psychology of your customers". In this
article, I'd like to go into this topic.
How do you create profiles of your
customers?
Do you have clear profiles of your existing
customers?
When I ask these questions to my clients,
for the most of time, I receive answers like these.
"Women in their late teens and early
twenties."
"Female office workers in their late
twenties and thirties."
"Housewives in their late twenties,
thirties and forties."
Now, I want you to ask yourself these
questions. Haven't you thought just like them and convinced yourself? This kind
of profiling is probably needed when you place advert. But, if you add a little
more information on these customer profiles, then you can have not only clear
ideas of customers but also think up what you should sell for the next.
For example:
"Woman aged 37: she purchased
underwear four times, but she shops only when free shipping is on. Her average
order unit price is \2,980."
"Woman aged 23: each time she
purchases three or four, low-price & bright colour tops with some patterns
on. Her average order unit price is \4,750."
"Woman aged 32: she purchased roll
cakes that richly filled with double cream at 70% possibility in the past. Once
she liked a product, she tends to keep buying the same product every time. Her
average order unit price is \2,400."
"Woman aged 27: she purchase the same
skincare product for once in three months. She also added items related to good
sleep at recent two purchase.
At this point, it comes to important to
check "vertical and horizontal axes of customers". By examining these
two factors, you can definitely increase sales.
【What is "vertical
and horizontal axes of customers"?】
The vertical axis is a record of a
customer's purchase from the past to the most recent. And the horizontal axis
shows what kind of products the customer bought together at each shopping.
In fact, by looking closely at the relation
of these two lines, you can make a clear profile of your customer. And if you
have solid profiles of your customers, it will be easier for you to structure
what you should offer them next.
Now, here is the process of profiling.
1. Sum up the order data of your customers.
Using Excel is a good and easy way to make your calculation on each customer.
2. Categorize your customers into "new
customers", "repeat customers" and "regular
customers", then examine each category.
3. After categorized your customers, you
can study them like these examples.
"This customer has shopped four times
but only bought products with free shipping."
"This person always purchased clothes
with patterns on".
"This customer is hooked on anything
tagged "melting".
"This customer purchase items in
similar colors every time.
"This customer shops only once in a
year but every time spends more than 100,000 yen".
"There are repeat customers for
product A and B".
Once you find out these facts, then you can
ask yourself these questions to picture your customers.
"Why this person buys this particular
product?"
"What kind of person bought this
product?
Furthermore, you can also think about these
questions to enhance your business opportunities.
"What did this person purchase before
and after that time of shopping?"
"What else did this person buy at that
time of shopping?"
"I found a trend in my customers'
purchase. Then, what is the probability?"
This method may take time at the beginning;
however, it allows you to visualize your target customers clearer and gives you
inspirations for what to develop or what to buy in next.
Moreover, if you have particular types of
customers for sale items, then you can offer them their favorite types of sale
in order to cut down sale cost. In the other way around, you can offer
exclusive items
preferentially to your regular customers who are highly
possible to buy the items. And this will help you to keep your customers
attracted to your shop.
Actually, the comment I receive most from
my clients is "We could come up with new business ideas that do not
require us high cost promotions such as free-shipping and discount."
Because of the highly competitive situation
they are in, companies entered into large shopping malls tend to believe that
they need to hold sale to attract customers. Indeed, it is true, however, it is
also possible to increase sales without having sale.
When you think about ideas for
e-newsletters or monthly promotions, I strongly recommend you to analyze your
customers. By doing so, you will find yourself coming up with huge amount of
ideas. Since it doesn't cost you for advert or anything, why don't you try it
today?
【Profile data of
customers】
Previously, we made use of order data. Now,
we can add them customer profiles to picture more solid images of target
customers.
Types of profile data are varied in each
e-commerce website.
Some websites pick up information such as
age, date of birth, and occupation but others collect no personal information
at all. Either way, you can make an analysis from products your customers
purchased. The worst thing to do is to compromise with ambiguous ideas like
"a female office worker in her twenties".
【Customer promotion
program】
There is a process that your customer goes
through: he/she starts as "a new customer" then becomes "a
repeat customer" and finally she/he shifts to your "regular
customer". You can illustrate this process and consider the way to promote
your customers from "new" to "repeat" customers, and what
to do to make your repeat customers regular customers.
I attached a chart for your reference. I
hope it would help you to revisit your company's case.
I'm going to write about the method later
on, but firstly I recommend you to think about it on your own way.
