Posted in Marketing and Strategy Terms, Total Reads: 343

Definition: Profiling

The solution for any sales and marketing problem starts with knowing who the customer is. Customer profiling creates descriptive segments or groups of customers which has specified characteristics. Customer profile can be divided on the basis of who the customers are. They can be consumers or businesses. In either case, profiling starts with data such as location, purchases, spending volume, etc. These are then grouped into segments that share similar characteristics.


Customer profiles:

• Demographics- Gender, Age, Education level, ethnicity, Income etc.

• Data that is available through research

• GeoDemographic data- Data on lifestyles, interests, attitudes, purchasing power etc.


• Firmographics- The marketers use this to refer to the characteristics of the company such as revenue, employee, growth rate and special data such as number of customers, specialty data etc.

Benefits of profiling:

1) Understanding Untapped Market Potential:

Customer profiling allows to analyze market areas and gives insights into penetration rates and market potential for products and services.

2) Improve Targeted Marketing:

Companies can focus their marketing efforts on customer groups who are more likely to purchase the products.

3) Selection of better sites:

Profiling helps in projecting the total market opportunity, expected revenues and customers for new and planned locations. It can use this to select better sites for their operations.


Hence, customer profiling, if done accurately helps in identifying and knowing customers. A company can assess the customer needs and gauge whether their business model meets those needs. A proper market research helps in estimating the target market accurately and can be an effective tool for meeting their objectives.



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