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Customer Profiling And Modelling In CRM:Practical Guide (+Examples)


In the previous chapter, we talk about the brand promise which has much to do with what consumers should expect from your organization. Before you can study your customers, you must have clear insight into the calibre of customers that you want in your organization. Having a clear insight of this will help your organization to evolve into a truly customer-centric enterprise. In order for you to succeed with this, you need to engage in customer profiling and customer modeling.


The elements that identify the best customer profiles should be those that reflect the corporate business model, unique selling proposition, and customer value statements(s).


An organization must be clear about which strategic objectives they want to optimize and for what products, to arrive at a sound basis for customer profiling and modeling. In customer profiling, we are talking about having enough information about our customers and using that information to come up with products and packages that will satisfy the need of our customers. An organization must know what they want to achieve with each of its products and how they intend to achieve it.





In this chapter we will be looking at the following:


·    Definition of customer profiling and modeling.


·    Customer scoring and scoring methods.


·    The role of technology in customer profiling and modeling.




Customer modeling on the other hand is the process of coming up with products that will meet the needs of different categories of customers that you have in the organisation For example, Etisalat came up with easy cliq in order to suit the need b segment of their subscribers.



The difference between a profile and a model is the element of time, making a model more a powerful predictor of behavior. Modeling involves profiling in order to elicit action. In modeling, we are talking about acting upon information that you have about your customer. You might access the information that you have about your customers in order to see what they have in common. This will help you to come up with products and packages that will suit a large percentage of them. You should know that models are not static in nature. You try and consider your customer behavior and discover what they have in common.


A model can help the organization in constructing campaigns, designing marketing plans, and offering better products and services to the target customers.


Customer Scoring and Scoring Methods


Customer scoring is one of the means of developing a customer model. It aims at scoring the customers based on certain parameters on a regular basis instead of developing a specific model for each requirement.


Developing this kind of scoring method will enable the organisation to assign multiple product/service score plus lifetime value, making it useful across multiple requirement areas such as campaign management, marketing departmental plans among others.


One of the widely acceptable methods of scoring is the RFM method. It captures the Recency, Frequency and Monetary behavior of customers. Customers that have bought recently, frequently and have spent the most money will be ranked as the most economically viable customer with regards to products/service offering.


Note:  REM is closely related to another scoring method called lifetime value.





So far in this chapter, we have talked about customer profiling and modeling, which has much to do with compiling customer data and having as much information as possible about customers, including relationships that they keep, in order to come up with models, that are products and packages that will meet the need of a large percentage of the customer base.


We also talked about the scoring method to be used which includes the Recency, Frequency, and Monetary behavior of he customers.  The role of technology is also discussed which we believe will help us in understanding the customer and the type of relationship that they keep. 


There is a need for market research and knowledge management which will help the organizations to know more about their customer base and come up with products and services that will meet their needs.


Brainstorming Session


  1. Who is a satisfier customer?
  2. How can you satisfy your customers?
  3. How do customers satisfaction relate to customer loyalty in a CCE
  4. You are the Business Developments Manager at Etisalat Nigeria. How can you measure the satisfaction level of your customers?


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