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Where the customer is and how it affects the company's profitability

In it Financial Management blog We have continually remembered that the customer is the center of the business and that the approach from the customer's point of view is basic and necessary for the development of any business organization. For this same reason, reflections on the client are essential for any type of business development planning.

Within the framework of these paradigms, one of the reflections that we can make is where to find clients. This question can lead us to propose important actions to be valued by the executive in a business and the management team of an organization.

When we ask ourselves where the client is, we may be referring to several dimensions:

Physical or geographical

It refers to the identification of the areas of a territory in which the client is located; This type of dimension will be important, for example, in logistical issues. Perhaps the physical location of the customer is the most traditional and the most obvious to manage for many businesses. Still, many companies are unclear about where their customers live or where their products are consumed, which could be vital to marketing decisions. 

Furthermore, knowing where the client is can lead us to identify it in the market or in the marketing phases. So, for example, the customer may not be the end user of a product. For example, if I want a hammer at a specialty wholesale store, I am clearly the customer of that store; However, I also have this condition regarding who manufactured the product; If the latter is not clear about who I am, my purchasing and consumption habits and my needs, they will be blind when it comes to their marketing.

Therefore, it is extremely important to identify where the customer or end user is located.

I remember when I advised a group of carpentry companies that made furniture for small apartments and had their strategy aimed at their owners; When we asked the question about where their client was, we were able to realize that for them selling ready-made furniture to apartment builders was an opportunity; They did not have to wait to sell the furniture to the end customer when they already bought the apartment but they could also take advantage of the opportunity to place it with the builders of such apartments. Knowing where the client is can allow us to vary our marketing strategy.

Customer digital location

Currently it is a dimension of vital relevance. We all have a location in the world of networks. Thus, for example, it may be that a client is a frequent user of Facebook, Tik Tok, Instagram or specialized networks. In that sense, Knowing which networks our clients travel through and how often they do so is very important to be able to send them our messages. This digital location is becoming increasingly important in the business world.  

Socio-Economic Dimension

This dimension analyzes the purchasing power of the client, the location of your home, which consumption habits has in relation to your income and even your own lifestyle. Being clear about where our client or our client niche is located in society will be essential to be able to speak their “language”.

As we have seen, it is not only important to know who your client is but, at the same time, where they are digitally, geographically, socioeconomically and in the marketing chain. 

Get your team together now and start analyzing your client; I assure you that this will give you many returns

Do you want to learn to know your clients and get maximum profitability? In our Master in Financial Management, Accounting and Management Control You will train to become the Financial Director, obtain the necessary skills for business management and analyze the client for greater profitability

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