What is a customer analysis?
A customer analysis is part of an analysis of the external factors and actors of an organization in a competitive environment. Customers are suppliers, partners, traders and consumers. The consumer, or end user, is central to most commercial organizations. That is a widespread marketing concept that forms the basis for many successful strategies.
What is a customer analysis?
A customer analysis is part of an analysis of the external factors and actors of an organization in a competitive environment. Customers are suppliers, partners, traders and consumers. The consumer, or end user, is central to most commercial organizations. That is a widespread marketing concept that forms the basis for many successful strategies.
A customer analysis is an ideal way to better understand the consumer and the customer. If the customer is well understood, then the customer’s needs can be better met in the first place. But the marketing strategy can also be adapted to this, so that companies become increasingly effective in approaching and persuading consumers.
As mentioned, a customer analysis is therefore part of the customer’s external situation analysis. It is a recurring element in the CICD (ABCD) analysis and the results of the customer analysis can be used as input for a SWOT analysis.
The customer analysis is largely built on Ferrel’s 6Ws. These six W-questions are as follows:
Who is the primary buyer of the product? That is what the first W-question is about. It’s a more difficult question than it seems at first glance. For example, if a product is distributed by influencers, it can be difficult to find out who exactly the buyer is. The actual buyer will differ from case to case, but creating one or more personas can clarify things.
What do our current customers do with the product? What is the buyer’s goal when making the decision to buy our product? What exactly does this customer gain? What is the added value of buying our product? Is the product used once? Or several times? What happens to the product after use? These are some questions that are linked to the What-question. Try to answer these as best you can.
The third W-question of Ferrel’s 6Ws is: where? Where do our customers buy or get our product? By analyzing this aspect of the customers, you gain insight into the way in which the product is distributed. Which sellers sell our product? Which sellers are selling well? Which bad? Why is there a big difference between the sales figures of these sellers? How have they shaped their online marketing efforts?
The fourth W-question is: when? When will our customers purchase the product or service? By answering this question, you’ll find out if the product might be seasonal or if it sells better on weekends than during the week. Do you identify differences? Then think about perhaps tailoring targeted ads at certain times.
Why do these buyers decide to buy our product? This is the fifth W-question. Discovering the motivation of buyers behind a purchase is valuable for any marketing unit. This information can be used when running campaigns.
If you know exactly why people do purchase, you will find out what exactly fulfills the wishes and needs of the customer. Are the wishes and needs of the customer changing? How can we respond to these changing needs and wishes?
The last question is why not? Why don’t buyers buy our product? By answering this question, a marketing unit can figure out what can be improved. Or rather: what needs to be improved.
For a negative answer, compare what the competitor’s products or services offer that your product does not.
The articles linked to the customer analysis tag can be used to perform an analysis of the external environment of an organization, and a customer analysis in particular. Are you missing methods or topics? Leave a message under an article or contact us.
