April 4, 2023

5 Reasons you Need to Build Customer Profiles

Discover how building customer profiles can give your SaaS a competitive advantage, increase customer retention & more!

Have you ever wondered why some businesses succeed in creating long-lasting relationships with their customers, while others struggle to retain them? Well, the answer lies in understanding your customer's needs and preferences, and the best way to do that is by building customer profiles. Whether you're a new business trying to establish a loyal customer base or an established one looking to improve customer retention, building customer profiles can be a game-changer. 

In this blog post, we'll explore the top five reasons why building customer profiles is crucial for your business's success and how you can leverage buying data to build them. So, let's dive in and find out how you can create a personalized experience for your customers, develop new products, cross-sell, and gain a competitive advantage with customer profiles.

Personalized Marketing

Standing out against your competition is more important than ever, and personalized marketing is one way to do it. You could have the most amazing product but if you’re not reaching your customers where and how they want to be contacted then it’s a moot point. We’ve all heard the saying, if a tree falls in the forest and no one is there to hear it, then did it really happen? Building customer profiles allows you to create targeted and personalized marketing campaigns to ensure the right people are hearing about it. By understanding the interests, needs, and pain points of your customers, you can create messaging that resonates and increases the likelihood of a sale.

Improved Customer Retention

Customer profiles provide insights into customer behavior and preferences, enabling you to identify potential churn risks and address them proactively. By providing tailored support and resources to customers based on their needs, you can improve retention rates and reduce customer churn.

Identifying patterns like end-user buying behavior can help you identify customer needs. For example, you could notice that a certain vertical has a higher average transaction size and as such end-users are less likely to purchase via credit card. You can use this information to create personalized marketing campaigns (you see what I did there?) to inform your customers about other payment methods. 

Product Development

Here at Flexibl we can relate to the never-ending product roadmap, which begs the big question - how do we decide what to prioritize? Customer profiles can provide valuable feedback and insights into the features and functionality your customers value most. This feedback can be used to cut through the noise and prioritize product development efforts, ensuring that you’re delivering features that are important to your customers.

If I take my earlier example about a vertical having a higher average transaction and end-users being less likely to use their credit cards. The product development team can take this information and assess adding alternate payment methods like ACH, or payment features like installments to diminish the size of the transaction. 

Upselling and Cross-Selling

Understanding customer profiles can also help you identify opportunities for upselling and cross-selling. By understanding a customer's current usage of a product and their needs, you can suggest additional products or features that will add value to the customer's experience. Keep in mind that upselling and cross-selling doesn’t mean it’s your product; it can also be a great way to create partnerships and provide your customers with value-added solutions. 

Competitive Advantage

Last but certainly not least, building customer profiles allows you to gain a deeper understanding of your customers than your competitors. By leveraging this information, you can develop a stronger competitive advantage, delivering products and services better tailored to your customer's needs and preferences. This may seem like a no-brainer but it’s easy to lose sight of how important it is for our customers to feel heard. If you have customers across multiple verticals and territories then it’s very likely that they have varying needs and behaviors. For example, if you have customers in Europe then you need to know that their end-users have very different payment method behaviors then end-users in the United States and Canada. Europe is predominantly debit card transactions whereas the United States and Canada are mostly credit cards.  

In conclusion, building customer profiles is crucial for any SaaS business that wants to provide personalized experiences, increase customer retention, develop products that cater to their customers' needs, cross-sell effectively, and gain a competitive advantage. By leveraging a combination of demographic, behavioral, and purchasing data, you can create detailed customer profiles that enable you to tailor your product and marketing efforts to meet your customers' needs better. And with the wealth of data available today, building customer profiles has never been more accessible.

So, don't wait any longer – start building your customer profiles today and take your SaaS business to the next level!

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