As a business owner it’s important to know your customers. We don’t mean know their names, we mean know them on a deeper level. What are their professions? Challenges? What draws them to your business? Where do they spend time online? What are their priorities? Building a strong relationship with your customers demands a good understanding of their needs and wants. If you know what someone needs or wants, you’ll be better able to give it to them. When you map a customer’s journey, you can use those insights to persuade the new as well as existing customers to buy from you.
Here are more advantages to understanding your customer:
- You can align your solutions with your customer’s needs: Sales grow as demand increases. So, if you want to increase sales of your services, you need to first understand your customer’s needs and align your solutions accordingly. Try to identify the challenges your customers usually face when looking for your services.
- You can offer different pricing packages: Understanding your customers also lets you decide the price to set for your services. When you know your customers’ purchasing power, you can differentiate your solutions and stand apart from your competitors.
- It will build rapport: When you know what your customers need and offer them personalized solutions based on their buying behavior, it builds your rapport with them. They perceive that you care about them, which will increase loyalty.
- It will increase customer retention: When you understand your customers’ needs and take care of them, they are more likely to buy from you more often and won’t move on any other company. This increases customer retention rates, thus decreasing the costs associated with acquiring new customers.
5 Steps to Take to Get to Know Your Customers Better
Now that you know why it’s important to understand your customer, it’s time to look at a few ways to know them better:
- Conduct market research: Conduct market research to identify current trends and buying patterns of your target customers. You can use this data to create customer awareness of your products and services. You can do this by setting up customer surveys, feedback forms or scorecards. It’s a good idea to regularly monitor online reviews and forums. These mediums provide you with direct insights or customer opinions that you wouldn’t have otherwise been able to gather. Make sure to keep your surveys and feedback forms simple and short to get better responses from your audience. And of course, listen to the phone calls coming in to your business! What are the common questions you’re getting? Are there any trends you’re noticing?
- Communicate directly with your customers: One of the best ways to know your customers is communicating with them directly. Ask for their feedback on your services, and ways to improve them that will better meet their needs. Talking to your customers directly help you build on your existing knowledge, and strengthen relationships with your existing customers.
- Build buyer personas: What is a Buyer Persona? This is a representation of your business’s ideal customer, based on their buying behavior, demographics, personal characteristics, purchase history, buying motivation and more. When you segment the customers based on certain parameters such as age, gender, location, occupation, their interests etc., you can get a good idea of how your services may best meet their needs. Use the knowledge you’ve gained from doing research and talking to current clients to put this together. If you have your ideal customer in mind always, you’ll be able to offer solutions that meet their needs.
- Analyze customer interaction: It’s a good idea to analyze customer interaction to know what challenges they face and what they’re usually looking for. Take a look at every touch point that your customers may encounter. It could be your front desk, telephone, website or social media account. For example, regularly reviewing phone calls will help you know how many calls turn into sales and why certain calls don’t close a deal. Felix clients can listen to calls through their dashboard, and use the knowledge about which calls turn into sales and which don’t to improve their conversion process.
- Understand why certain customers aren’t converting: It’s never simple to turn a prospect into an actual customer. It can be a long journey that involves a lot of stages. If you’re not converting a lot of calls, it’s a missed opportunity if you don’t listen to them to figure out what’s wrong. Try to recognize what stage in the buyer’s journey the disconnect began. Knowing this will ultimately help you tailor your approach in the future.
If you really want to make your business stand out, you can’t assume you know everything about your customer. Today’s consumers are more informed than ever — especially when it comes to what solutions are available to them. However, if you work to offer solutions based on your customers’ particular needs, you can create a loyal base that helps your business succeed in the long run.
Want to get more calls to your business? Get in touch!