Identifying and Understanding Customers

• Why is understanding customers crucial for businesses?

  It leads to targeted products and increased sales
• How does understanding customers impact customer satisfaction?

  It allows for tailored products and services
• What are the benefits of identifying and understanding customers?

  Improved product development and effective marketing
• What are the key benefits of understanding customers?

  • Tailored products and services
  • Targeted marketing campaigns
  • Enhanced customer experience
  • Increased sales and loyalty
• What is market research?

  Collecting and analysing data about customers
• What are the two types of market research?

  Primary and secondary research
• How might a fashion retailer use market research?

  By conducting surveys on customer preferences
• What is customer segmentation?

  Dividing the market into distinct groups
• What are common criteria for customer segmentation?

  Demographic, geographic, psychographic, and behavioral
• How can a travel company segment its customers?

  By categorizing them into adventure seekers
• What are functional and emotional needs?

  Functional needs relate to practical use
• How might a smartphone buyer prioritize their needs?

  By valuing battery life and brand prestige
• What stages are involved in the purchasing decision process?

  Problem recognition, information search, evaluation
• How can businesses influence the purchasing decision process?

  By providing helpful information and comparisons
• What methods can businesses use to collect customer feedback?

  Surveys, reviews, and social media monitoring
• Why is customer feedback important for businesses?

  It helps identify satisfaction and improvement areas
• How can a restaurant use customer feedback?

  By analyzing reviews to improve service speed
• What strategies can businesses develop using customer insights?

  • Personalised marketing
  • Product improvements
  • Customer relationship management (CRM)
• What does personalised marketing involve?

  Tailoring messages and offers to customers
• How can customer feedback lead to product improvements?

  By refining products to meet expectations
• What is the purpose of CRM systems?

  To manage and analyze customer interactions
• What is a challenge businesses face in understanding customers?

  Data overload from large amounts of data
• How can changing preferences affect businesses?

  They can shift rapidly due to trends
• How might competition impact a business's understanding of customers?

  It makes differentiation more difficult
• What are the key practices of Amazon’s customer-centric approach?

  • Personalised recommendations
  • Efficient delivery options
  • Encouraging customer reviews
• What are the benefits and challenges of understanding customers?

  Benefits:

  • Improved product development
  • Effective marketing and sales
  • Increased customer loyalty
  • Enhanced customer experience

  
  

  Challenges:

  • Managing large volumes of data
  • Adapting to changing preferences
  • Competition for customer attention
  • Ensuring consistent data collection
• What is the conclusion about understanding customers?

  It is essential for developing effective strategies