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Customer Analysis

Areas to be covered in the Customer Analysis section:

Market Size

Include statistics on the size of the market, both in terms of the number of customers and the value of the industry as a whole.

Attempt to put the above figures into context through providing statistics detailing the growth (or decline) of the market over recent years.

Customer Segmentation

Divide the customers in the market into different groups based on common characteristics.

Value Drivers

Identify what each customer segment values when it comes to your industry.

How price sensitive is each segment, is quality an important consideration, and how important is convenience or are customers willing to go out of their way to get the right product or service?

Decision Process

Include details of who actually purchases your product or service and who is responsible for encouraging that purchase.

For many products the buyer is not actually the end user, often considered the customer.

For example, around 50% of purchases of women’s perfume are actually made by men. The product may be for women but it’s very important to also focus marketing efforts on men. ‘Pester Power’, used to describe the process of kids pushing parents into making a purchase, is another example.

Similarly, there are a surprisingly high number of products and services for whom the buyer is not the main driver being making the purchase, even though they may be purchasing the product or service for themselves. One example is hairdressing, with women encouraging men to go to their hairdressers.

Concentration of Customer Base

Give details of where the various target customers are concentrated. Perhaps they live in similar geographical areas, congregate at certain events, or buy similar items?

This should help you identify appropriate marketing channels for each customer segment.

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