To improve sales efficiency, customers can be divided into “groups” according to their personal needs and preferences; new customers can then be assessed and assigned to the appropriate group. This profiling combines psychological and demographic groupings— hence the term “psychographic.” This enables the business to cater to customers’ specific needs and preferences in a seamless and efficient way. This streamlining of customer knowledge allows companies to triumph in competitive and customer-focused markets.
“The Key to Happiness” was a self-diagnosis tool developed for Club Med customers. The business found that over 40 percent of customer dissatisfaction was directly linked to customers being recommended (or allowed to choose) the wrong type of location for their holiday. For example, a family would unwittingly choose a resort designed for single people, while a couple wanting to discover the local customs would mistakenly visit an empty island. Further studies revealed Club Med had five customer segments:
- Tubes, who like to be comfortable and with their family.
- Celebrators, who like to party.
- Epicureans, who prefer a high level of comfort.
- Cultivated guests, who like to discover the country—its culture,
history, and charm.
- Activists, who want to get in shape and enjoy sports.
“The Key to Happiness” was a self-service system designed to help customers. It worked by using questions to find out which of the five categories best suited the customer and which location would serve them best. As a result of this system, business grew both in the short term, as customers found what they wanted, and in the long term, as satisfied customers kept returning.
- Understand your clients. Who are they, and what do they want from your business? Customer feedback and surveys are useful sources of information to help you gather this information.
- Segment your market. Divide your customers into meaningful groups based on their personality, demands, and other relevant factors.
- Brainstorm ways your product can be tailored to best serve the interests of these individual groups.
- Assess each new client, to decide which of the “customer groups” they belong to—and then provide them with a more personalized
- Match all the elements of your offer—particularly pricing and extras—to precisely meet the needs of each client segment.
- Ensure that people in your business understand, value, and tailor their work to satisfy each type of customer.
- Be prepared to add new groups as required