In this article we describe Customer Analysis, often used in order to map out the external environment of a business.
In this article you can expect:
Summary of Customer Analysis
Customer Analysis is used in order to map out the external environment of a business. It is a component of Situational Analysis, CICD Analysis and External Analysis. The output from Customer Analysis serves as input for SWOT Analysis. Conducting a customer analysis enables a business to respond to the opportunities and threats that the customers entail.
What is de Customer Analysis?
Within present market perception, the client stands in an increasingly central position. The Customer Analysis is therefore the ideal way to understand clients and basis for adjusting a business’s strategy.
Customer Analysis is a component of Situational Analysis and is used in order to map out the external environment of a business. The opportunities and threats that originate therefrom serve as input for SWOT Analysis upon which the ultimate choice of strategy is based.
“Customers” is understood to be:
- customers of manufacturers (suppliers)
- dealers (stock supplies)
- consumers ( end users)
Why Customer Analysis?
Conducting a Customer Analysis provides a business with insight into the opportunities and threats that comes with the external environment. This enables a business to adjust its strategy accordingly and thereby effectively respond to its environment.
What does Customer Analysis consist of?
The W’s of Ferrel et al. (1999) gives a good indication on what the Customer Analysis must give answer for.
Who – who are our present and potential customers?
What – what do our present and perhaps potential customers do with our products?
Where – where do our present and perhaps potential customers buy our products?
When – when do our present and perhaps potential customers buy our products?
Why – why do our present customers and perhaps potential customers buy our products? Why – why don’t they?
Conducting Customer Analysis
Divide it into a number of paragraphs under the following (per purpose group):
1. Segmentation - Which groups exhibit comparable behaviour? Describe these groups!
2. Situation(s) of use+ Potential value + the importance thereof
2.1 General values
2.2 Product specific values With what purpose do customers use the product? Which values do they find important generally as well as product specifically?
3. Achievements (present) – Gives insight into the present achievements. How good does the product perform? Does it have distinctive character?
4. Future (expectations) – Should there be changes implemented in the near future?
5. Client satisfaction - Is the customer satisfied? Here a number of opportunities and threats manifest themselves that are used for the SWOT and strategic policy making.
Customer Analysis is an aid for analysis with which research can easily be done on the way a business can effectively respond to its environment. It is up to the marketer to implement a good adjustment.