Consumer packaged goods move fast, and customer buying behavior changes. To keep up, you must assume that knowing your ideal customer profile (ICP) entails more than simply naming it.
If you really know your CPG customers inside out, you can stay in tune with them and use your ICP to
- drive brand awareness in that group,
- increase customer loyalty via social media, offers, etc., and
- maximize sales – wherever those customers find themselves.
But before we ask some questions about your ICP, let’s look how it works.
How An Ideal Customer Profile Works For CPG Products
These often target young adults and athletes looking for a quick burst of zing! Perhaps you’ll target ages 18-35 with a focus on males. Perhaps not, nowadays! But your decision affects your branding and possible markets.
You probably target parents and carers – possibly 25s-40s with very young children. But does your market prefer quality and comfort, or affordable basics? Can your brand target both effectively?
These can target a broader market – but widening your appeal doesn’t necessarily lead to more sales. Customers are choosy. Your ICP should carefully consider the most likely customer for your product. Will they want gluten- and sugar-free? Sustainable sourcing? Cheaper, bulk buys?
It’s easy to assume “women,” but men now use moisturizer. How does this affect your ICP? Your demographic and psychographic decisions need to keep up with changes in trends.
So let’s move on to some questions about the components of your ideal customer profile – because one thing is certain, it’s not a one and done. It needs revising regularly.
Interrogate Your Ideal Customer Profile Regularly!
>>Has the age or gender, income or location of your expected target market changed? Check analytics, and shoot for the right target going forward. Your merchandizing strategy in-store depends on accurate demographics.
>>Have your customers mentally moved to conform to the zeitgeist? Interests, values, and beliefs are not static. Talk to customers!
Consumer Behavior and Shopping patterns
>>Are customers avoiding your brand’s shrinkflation? Do they now prefer more quality or more content for the same price? Do they now prefer an online subscription service to reduce their costs? This information helps you revise your ICP and possibly lead to an effective trade promotion?
Ways to Define and Keep Your ICP Up to Date
1 Conduct Market Research
Constant market research will keep you in tune with your ideal customer. As we said, you need to really know them so you keep them loyal.
2 Analyze Your Customer Data
Don’t forget to analyze both your lagging and leading indicators to help you refine your ideal customer profile. One without the other can be misleading. But together, they let you know if your targeting is on point.
3 Use Customer Feedback
Your research will uncover information about how well your ICP is serving you. But also keep an eye on social media responsively. You can then adjust your marketing or your customer profile accordingly.