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Customer Profiles in Every Retailer’s Database 

CUSTOMER PROFILES

Understanding and Leveraging Customer Profiles for Retail Success

What is a Customer Profile, and Why is it Important?

In the changing world of retail, understanding your customers is paramount. Every shopper has unique preferences influenced by various factors such as proximity to the retailer, product type, price, and even the time of day. Retailers must develop accurate customer profiles to effectively cater to these diverse needs. These profiles categorize shoppers into archetypes, helping businesses tailor their marketing strategies and enhance the shopping experience.

Why Customer Profiles Matter for Retailers and Shopping Malls

1. Personalization of Experience: Customer profiles allow for targeted advertising campaigns, tailored messaging, and personalized product recommendations, ensuring each shopper feels valued and understood.

2. Optimized Mall Design: By analyzing foot traffic patterns, retailers can strategically place complementary stores next to each other, such as positioning a coffee shop near a doughnut store. This enhances customer flow and prioritizes convenience.

3. Deep Customer Insights: Understanding where and how customers like shopping, spending patterns, and behaviors can provide invaluable insights. Data collected from foot traffic, sales transactions, and demographics helps create a comprehensive customer profile, enabling better decision-making.

The Different Types of Customer Profiles and How to Engage Them

The Convenience Shopper

Behavior: Convenience shoppers frequent your store due to its proximity to their home or workplace. They often shop during peak times, such as lunchtime, for quick and easy purchases.

Challenge: These shoppers may not be loyal and could switch stores if they change jobs or move houses.

Solution:

  • Geo-Targeted Offers: Use location-based promotions to attract these shoppers during peak times.
  • Targeted Advertising: Strategically place relevant advertisements at the entrance during peak times to capture and guide lunchtime foot traffic
  • Personalized Messaging: Send personalized communication based on shopper behavior and preferences. For convenience shoppers, this could mean sending timely and relevant messages, such as lunchtime deals if they work nearby or promotions on items frequently purchased by these shoppers.
  • Loyalty Programs: Develop loyalty programs that reward frequent visits.
  • Click and Collect: Offer services like click and collect for a seamless shopping experience.

The Brand Advocates

Behavior: Brand advocates are your biggest fans, promoting your store to friends, family, and on social media. They shop frequently and offer lots of value to your brand.

Challenge: It can be easy to take these customers for granted and not offer them the appreciation they deserve.

Solution:

  • Exclusive Rewards: Offer early access to sales, unique discounts, or exclusive product launches. Such perks make brand advocates feel appreciated and valued.
  • Personalized Communication: Send tailored offers based on shopping preferences, update them on new arrivals, and even send special thank-you notes. 
  • Loyalty Program Enhancements: Implement tiered loyalty programs with exclusive benefits to motivate these shoppers to maintain their status and gain better rewards. 
  • Real-Time Engagement: Providing real-time updates on rewards and special offers via mobile apps or SMS can keep brand advocates engaged. 

The Disengaged Customer

Behavior: These shoppers have visited your store at least once but are not loyal and may shop elsewhere.They have no loyalties or ties to your store and, therefore, will shop at a few different retailers, potentially returning to your store once a year or never at all. Usually, the reason for remaining disengaged is due to a negative experience, the absence of relevant products, and targeting and moving on to an alternative retailer providing better value or a better experience.

Challenge: It’s challenging to re-engage them. On average, it takes 12 positive customer experiences to make up for one negative experience. Therefore, once a customer disengages with your brand, it can be challenging to turn this around but not impossible. 

Solution:

  • Re-Engagement Campaigns: Create personalized win-back offers to entice disengaged customers to return. 
  • Personalized Communication: Address specific pain points with customized messages to make disengaged customers feel valued.
  • Incentivized Visits: Invite them to exclusive events or offer VIP access. manage these invitations and track attendance to ensure they receive a personalized experience.
  • Behavioral Analytics: Use analytics to identify patterns and tailor re-engagement strategies.

The Loyal Shopper

Behavior: Loyal shoppers love your store or shopping mall, shop frequently, and engage with your loyalty programs.

Challenge: Customer retention is key, especially with evolving shopping experiences and new technologies. it is important to utilize key data to keep up-to-date with how your loyal customers are changing so you can change with them.

Solution:

  • Enhanced Loyalty Programs: Implement tiered rewards systems to reward customers based on spending levels. Offer unique rewards for top-tier members. 
  • Personalized Offers: Send offers based on purchase history. This can include birthday discounts, personalized thank-you notes, and targeted promotions that make loyal shoppers feel valued and appreciated.
  • Real-Time Messaging: Provide instant updates on rewards and special offers to keep loyal shoppers engaged and informed of the latest news. 
  • Special Recognition Programs: Celebrate milestones and offer referral bonuses.
  • Regular Engagement: Regularly communicate with these shoppers through newsletters, social media, and app notifications. Online groups or in-store events can also strengthen the sense of community and connection to the mall. 

The Bargain Hunter

Behavior: Bargain hunters are focused on finding the best deals and saving money. They are highly price-sensitive and will often shop around to compare prices before making a purchase. Economic downturns tend to increase the number of cost-conscious consumers, making this profile particularly relevant during such times.

Challenge: Maintaining their loyalty can be difficult as they may switch to competitors offering better deals.

Solution:

  • Price Matching and Guarantees: Implement price match policies and satisfaction guarantees such as hassle-free returns or price adjustments, can build trust with bargain hunters. 
  • Membership Perks: Offer exclusive member benefits and special shopping days with even better discounts. 
  • Real-Time Notifications: Provide instant alerts about sales and discounts. Notifying bargain hunters about flash sales or surprise discounts can create a sense of urgency and drive immediate visits. 
  • Clearance and Overstock Sales:  Regularly hosting clearance events to sell overstock or out-of-season items at reduced prices can attract bargain hunters. Creating dedicated discount sections within the mall or stores where bargain hunters can easily find marked-down items can also enhance their shopping experience.
  • Coupon Books or Bundle Offers: Providing digital coupons that can be easily accessed via a mobile app or email can appeal to bargain hunters. Consider offering discounts for bulk purchases, such as buy one get one free or percentage off when buying multiple items.

The Wanderer

Behavior: Wanderers enjoy browsing without a specific intention to buy but may make impulse purchases.

Challenge: Converting their browsing into purchases can be difficult, so its essential to capture their attention while in-store.

Solution:

  • Visual Merchandising: Use eye-catching displays and strategically place best-selling or unique items at the entrance to the store to capture attention.  Regularly updating the mall’s decor to reflect seasonal themes or current trends can enhance the browsing experience for wanderers, making their visits more enjoyable and encouraging longer stays.
  • Seamless Shopping Experience: Provide interactive maps to help wanderers navigate the mall more easily. Ensuring the mall is inviting with plenty of seating areas, clean restrooms, etc can also enhance the browsing experience. 
  • Impulse Purchase Encouragement: Offering last-minute deals and small, enticing items at checkout counters can encourage impulse purchases. Creating a sense of urgency with flash sales or limited-time offers on specific items can spur wanderers to make spontaneous purchases
  • Exclusive Events and Experiences:  Hosting events such as live music, fashion shows, product demonstrations, or craft workshops can engage wanderers and encourage them to make related purchases. 
  • Storytelling: Using signage and digital displays to tell the story behind products, such as how they are made or their unique features, can create an emotional connection and attract wanderers. 

The Researcher

Behavior: Researchers are informed shoppers who have done their homework. They have read reviews, compared prices online, and know exactly what they want to purchase. Their shopping journey is driven by the need for efficiency and ease.

Challenge: Meeting their high expectations for information and service. They demand a frictionless shopping experience and may be quick to abandon their purchase if they encounter any obstacles or if the process is too complicated.

Solution:

  • Comprehensive Product Information: Ensure all products have detailed descriptions, specifications, and reviews available. Provide digital catalogs that researchers can access via mobile apps or interactive kiosks to browse and compare products before making a purchase decision.
  • Seamless Customer Service: Train knowledgeable staff and offer live chat support allowing researchers to get immediate answers to their questions.
  • Ease of Shopping: Streamline the checkout process with card-linking technologies and digital wallets. Offer click-and-collect services to combine the convenience of online shopping with the gratification of in-store pick-up. 
  • Comparison Tools: Provide tools for price and feature comparisons. Display customer reviews and ratings to help researchers make informed decisions.
  • Enhanced In-Store Experience: Use interactive displays and self-service kiosks enabling researchers to look up product information and check availability without requiring staff assistance. 

The Takeaway

Customer profiles are a gateway to providing better customer experiences. To maximize customer retention and loyalty, identify the different customer profiles in your database and develop targeted strategies to encourage repeat visits and foster loyalty. Consider these questions for your business:

  • Which customer profiles do your shoppers fit into, and what are the proportions of each?
  • What strategies can you implement to enhance their loyalty to your store or shopping mall?
  • What tools or technologies do I need to meet my customer’s needs?

Understanding your shoppers is essential for boosting customer loyalty. By combining the right data with thorough analysis, you can effectively increase both customer acquisition and retention.

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