Demographic data about the shopping habits of people has been an important part of business since its conception. With the influx of social networks and consumer rating sites that encourage customer reviews, businesses tend to follow the trends, which are being discussed online. Thanks to these tools, social customer profiling was born and has thrust business in a completely new direction.
A company will react to the influences of the public sphere by analyzing and reacting to data collected from the public sphere. In most cases company will use this data to market towards a specific demographic, be it gender, income level, age, marital status or employment status.
For example, social networks have shown businesses that younger customers tend to be more interested in new and innovative products while older demographics tend to focus more on the quality and safety a product offers. Businesses will take note of these preferences and adjust their pitch accordingly.
Once businesses have mapped behavior profiles of their customer base they will begin to focus on specific actions these customers take. This will include noting where the customer bought a product, how much the product costs when it was purchased and if they purchased any other items during this sale.
This customer profiling allows businesses to know who is buying their products before anyone else. Businesses can use this data to adjust their business profile to meet their customers’ needs so they can stay ahead of the competition.
Social customer profiling is the newest way to follow consumer trends, not only to generate money but also to help keep a loyal customer base. Customers tend to stick with brands that have provided a good experience in the past.
Companies work to imprint their branding in customers’ minds because this will help encourage customers to purchase their products in the future. Companies can then count on these loyal customers to purchase a new product line before it is heavily advertised or becomes popular.
Companies all over the world are using social networks to collect data on their customers. In a tough economy where many businesses are fighting for the same consumer base it is essential to use every tool available to keep in contact with loyal customers. Not only does online profiling allow companies to track their inventory, it also helps them follow up a successful marketing strategy with products that are sure to meet consumer’s needs.