Do you Know Your Customers? 12 Questions on which you should always be prepared to answer.

Your boss expects you to be able to answer all his questions and especially to know your customers. Here are the 12 things your boss is likely to ask you and a handy Checklist to prove to him that you know your customers better than he realizes.

Everyone speaks about customer-centricity and the importance of the customer, but how well do you know yours – really? The following is a checklist of 12 facts you need to be able to answer to know your customers as well as you should.

1. Who is your customer?

OK I'm starting slowly, but do you know who your customers are? Not who uses your category, but who the people are that buy your product or service today? How much do you know about them? Their age, gender, and location are the basics, but there's a lot more you need to know about them. 

2. What business are you in ?

Although this refers more to the category than the customer, it is essential to ensure you are looking at it through the eyes of your customers. Many organizations are working with industry definitions rather than customer ones. What about you? If you want to know your customers, you need to understand what category they think they are buying.

This is one of the essential elements you need to understand to know your customers deeply. It is something that many organisations don't take the time to identify clearly, which results in an incorrect appreciation of their market and competitors. By not correctly identifying the category you are in or plan to enter, your innovations will also lack the success you are hoping for.

3.Who are your major competitors?

Again another slow starter to show you know your customers. Here you want to make sure that you have correctly identified what market you are competing in and who your competitors are. It just might not be the one you think!

Also, do you know as much about your competitors' customers as you do about your own? 

 4. What do they buy?

What and where your customers buy your product should have been covered in point #1. You should look at how much your customer spends on your product or service and how much they have available. How does what they spend compare with the amount they spend on your competitors? Is your share of category and wallet growing? If not, why not?

Other information you need to gather to know your customers in this area is how they react to promotions. 

5. What does your customer need?

I'm not speaking about what he says he needs, but what he really needs and perhaps doesn't even know yet. What would surprise and delight him? What does he need that he only knows he does when he sees it?

Sometimes customers will compensate without even realizing it. By watching and listening to them, you will know your customers well enough to offer them even more (satisfaction). 

6. What do they think of your price?

Here consider not just the price they pay but also the cost to them of their actual purchase. Do they buy online with packing and shipping costs extra? Do they have to drive out-of-town or even further to be able to purchase? All of these add to the perceived cost of your brand.

To know your customers, you have to calculate the total cost to buy what you have to offer? And how that price compares to the total value, they place on it?

The value will automatically include a comparison to competitive offers, ensuring you evaluate their brands' values.

Review the elements of your offer, which your customers value and which they value less. Is there room for renovation to include more of what they like or remove what does not bring value – and usually involves cost for you? Spend your manufacturing and development budget on things your customers value most.

7.What do they think of your product?

Product testing is an often overlooked essential of concept development. Even if a product is tested before launch and supposedly does well, competition is constantly changing, as are your customers' tastes.

Therefore it is vital to keep an eye on your performance over time. Annual measurement at the very least and preferably also of your major competitors is the minimum, to keep your finger on the pulse

8. What do they think about your advertising?

I am continually appalled at just how many companies waste large portions of their marketing budget by producing multiple ads, sometimes to practically air-readiness, before choosing the final direction. Please consider adopting your advert to your customer's needs.

9. What do they think about your online presence?

It's not so much what they think here, but more about do they even notice? Unless you know your customers' habits online, you are unlikely to be where and when they are ready to receive your messages.

Instead of choosing and using just the most popular online websites – like everyone else – your work completing point #1 will indicate the most visited by your customers. For some brands, an online presence is of minimal importance, whereas it replaces more traditional forms of advertising for others.

10. What do they think of your social media personality?

You can't hide your personality on social media, nor delete what you have shared. The words you choose for a Tweet, the ideas you share on FaceBook, the images you post on Pinterest, all build to a picture in the minds of your customer. Treat your online discussions in the same way you would any other form of communications and use the same tone and spirit. Just because it's new media doesn't mean it is less important or severe.

11. Why do they buy?

There are many "why" questions I could have added here, but this is fundamentally the most important. If you know why people buy and how you satisfy their needs, you are more likely to meet them.

In addition, if you frequently monitor their changing needs and desires through trend following, the more likely you are to continue to enjoy increased customer satisfaction.

12. Why do you sell?

I've saved the best for last. Why are you in the business you are in? Are you looking to grow a products' sales, increase distribution for your other products, make a different product more attractive (or a competitors' less attractive), or are you just milking profits? All of these are valid reasons, but you need to be very clear on why to know how to answer all the other questions.