Lesson 3 - Customers - 1

LEARNING MODULE IN TECHNOPRENEURSHIP
AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY

College of Engineering and Information Sciences
MAIN CAMPUS, BUNAWAN AGUSAN DEL SUR
Lesson 3: Customers
Introduction
Great customer support drives an amazing customer experience, especially when your
support team moves beyond just reacting to problems and toward anticipating customers'
problems.
It’s often said that it’s cheaper to keep existing customers than to find new ones. (It’s even
been estimated that acquiring customers costs 6–7x more.) And it’s true: Bad customer service is
a key driver of churn. The U.S. Small Business Administration reports that 68% of customers leave
because they’re upset with the treatment they've received. Don’t let that happen to you. Prioritising
customer service support helps you attract and retain loyal customers, and can have a big impact
on your company’s bottom line.
At the end of lesson, the students will be able to:

1. Discuss customer needs, pain points and demographics.
2. Discuss market research and validation.
3. Identify the decision-making process.
4. Enumerate and discuss target customer profile, persona.
What Is a Customer?
A customer is an individual or business that purchases another company's goods or

services. Customers are important because they drive revenues; without them, businesses cannot
continue to exist. All businesses compete with other companies to attract customers, either by
aggressively advertising their products, by lowering prices to expand their customer bases, or by
developing unique products and experiences that customers love. Think Apple, Tesla, Google, or
TikTok.
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KEY TAKEAWAYS
 Customers are the individuals and businesses that purchase goods and services from
another business.
 To understand how to better meet the needs of its customers, some businesses closely
monitor their customer relationships to identify ways to improve service and products.
 The way businesses treat their customers can give them a competitive edge.
 Although consumers can be customers, consumers are defined as those who consume or
use market goods and services.
Understanding Customers
Businesses often honor the adage "the customer is always right" because happy customers
are more likely to award repeat business to companies who meet or exceed their needs. As a result,
many companies closely monitor their customer relationships to solicit feedback on methods to
improve product lines. Customers are categorized in many ways. Most commonly, customers are
classified as external or internal.
External customers are dissociated from business operations and are often the parties
interested in purchasing the final goods and services produced by a company. Internal customers
are individuals or businesses integrated into business operations, often existing as employees or
other functional groups within the company.
Studying Customers
Businesses frequently study their customers' profiles to fine-tune their marketing

approaches and tailor their inventory to attract the most customers. Customers are often grouped
according to their demographics, such as age, race, gender, ethnicity, income level, and geographic
location, which all may help businesses cultivate a snapshot of the "ideal customer" or "customer
persona." This information helps companies deepen existing customer relationships and reach
untapped consumer populations to increase traffic.
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Customers are so important that colleges and universities offer consumer behavior courses
dedicated to studying their behavioral patterns, choices, and idiosyncrasies. They focus on why
people buy and use goods and services and how it impacts companies and economies.
Understanding customers enables businesses to create effective marketing and advertising
campaigns, deliver products and services that address needs and wants, and retain customers for
repeat business.
Customer Service
Customer service, which strives to ensure positive experiences, is key to a successful

seller/customer dynamic. Loyalty in the form of favorable online reviews, referrals, and future
business can be lost or won based on a good or bad customer service experience. In recent years,
customer service has evolved to include real-time interactions via instant message chats, texting,
and other means of communication. The market is saturated with businesses offering the same or
similar products and services. What distinguishes one from another is customer service, which has
become the basis of competition for most businesses. This is a key element of Sigma Six.
Customers vs. Consumers
The terms customer and consumer are nearly synonymous and are often used
interchangeably. However, there exists a slight difference. Consumers are defined as individuals
or businesses that consume or use goods and services. Customers are the purchasers within the
economy that buy goods and services, and they can exist as consumers or alone as customers.
Customer’s Need
A customer need is a need that motivates a customer to purchase a product or service. The
need can be known (i.e., the customer can put it into words) or unknown, and is the ultimate factor
that determines which solution the customer purchases.
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One effective way to determine and evaluate customer needs is by using the lens of “jobs to be
done.”
Three (3) Main Types of Customer Needs
Customer needs can be broken out into many different varieties and categories. For
example, a customer might need a solution that has specific functionality, falls within a set budget,
or provides a certain level of reliability.
Ultimately, all customer needs can be categorized into three main types: functional, social,
and emotional needs.
1. Functional Needs
Functional needs are the most tangible and obvious of the three main types of customer
needs. Customers typically evaluate potential solutions based on whether they’ll help them achieve
a particular task or function. The product or service that best addresses their functional need is
likely to be the one they purchase, or hire.
Functional needs can be broad or extremely specific, depending on the customer’s buying
criteria.
For example:
A customer who’s planting a garden for the first time might say, “I need a garden hose.”
Meanwhile, an experienced gardener might tailor their criteria by saying, “I need a hose that’s long
enough to reach my vegetable garden from my backyard spigot.” Another customer who’s dealt
with the frustration of using a low-quality product might tailor their need differently by saying, “I
need a high-quality garden hose that won’t tear or kink from regular use.”
With this kind of insight into customers’ functional needs, a company that manufactures
garden hoses might develop new products, such as hoses that come in a range of lengths and don’t
kink.
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2. Social Needs
A social need is a customer need that relates to how a person wants to be perceived by
others when using a product or service. While social needs aren’t typically a customer’s primary
concern when considering a purchase, they can influence their final decision.
Social needs are often more difficult for a company to identify, and vary substantially from
customer to customer. By understanding various social needs, you can look for patterns among
your users. If enough of your customers share a particular need, consider how it can inform your
product development, sales, and marketing processes.
Returning to the garden hose example, imagine the customer is a member of a gardening
association. Members of this association have an affinity for high-tech gardening tools and
regularly discuss new products they’ve tried. The customer may decide, either consciously or
unconsciously, to purchase a hose with advanced features—for example, one that connects to a
smart water controller—to bond with other association members.
If, on the other hand, the customer is an environmentalist who’s active in various
communities, they might be more concerned about whether a hose is made from sustainable
materials that their fellow environmentalists use.
3. Emotional Needs
Emotional needs are similar to social needs in that they’re typically secondary to functional
needs. Whereas social needs refer to how a customer wants to be perceived by others when using
a product, emotional needs refer to how a customer wants to feel.
Returning once more to the garden hose example, consider the reasons why the customer
gardens. If they find gardening to be a relaxing hobby, they may be more likely to choose a basic
hose over a high-tech option. Alternatively, if gardening triggers memories of the customer’s
grandparents, they might opt for a brand that evokes that nostalgia.
While emotional needs can be difficult to pinpoint, companies that identify those of their
customers can use the information to tailor and optimize their product messaging.
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Customers Demographics
Customer demographics are categories of consumer populations that are useful to a

business for purposes, such as marketing and product design. The term also refers to the study of
such categories in a business context.
An endless number of variables can be used to categorize customers and potential
customers. Some examples of the most common customer demographics for business purposes
include the following:
 age
 gender
 ethnicity
 geographic location
 household income level
 level of education
 marital status
 home ownership
 occupation
 employment status
 number of children in household
 hobbies
What is customer segmentation?
Demographics and demographic segmentation are a key element of customer

segmentation, which involves profiles that are based on grouping people together who have similar
demographic characteristics. Targeting specific groups of customers enables more efficient
allocation of marketing resources and increases the opportunities for cross-selling and up-selling.
Customer segmentation enables more personalized interaction between a business and its customer
base. It improves customer service and fosters customer loyalty and customer retention.
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Appropriately targeted marketing campaigns are typically more relevant to the customer's needs
and more welcome.
Businesses can take a variety of approaches to customer segmentation.
Why analyze customer demographics?
Besides being used to improve marketing and customer service, a business might study
consumer demographics to get a better understanding of who is using a product or other resource.
For example, demographic information helps delineate the characteristics of a population in a
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particular neighborhood or the audience of a website. This approach is used to create demographic
profiles of individual customers as well as groups of target customers.
The specific customer profiles that a business uses will depend on what it's selling and who
its target audience is.
Virtually any organization trying to sell products and services to a target audience uses
market research to gather demographic data, market segmentation data and related statistical
information to formulate its marketing strategy. This specific demographic information is essential
when preparing messaging or promotional content to ensure that it reaches its target market and
addresses specific metrics, such as age group and ethnic group.
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Sources of Customer Demographic Data
Social media is an important source of data on demographic characteristics. Using

LinkedIn, Facebook and other social media sites, businesses can gather data on metrics, such as
age group, educational background, geographic location and travel preferences, providing insight
into the target audiences.
Other sources of demographic data include the following:
 S. Census Bureau
 S. Bureau of Labor Statistics
 Social Security Administration
 tax records
 search engines
The key to capturing data is to make sure that it reflects the true nature and behavior of
prospective customers.
Demographic data includes a range of personal information.
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Demographics versus Psychographics
Demographics is largely statistical data from specific metrics. Psychographics includes

both objective statistical data and subjective, non-numerical data and information. It examines
attitudes, aspirations, fears and other relevant psychological criteria.
Knowledge of both statistical and nonstatistical data provides a detailed view of existing
and prospective customer profiles and their "hot buttons" or highly charged issues from various
perspectives.
The idea behind psychographics is identifying and triggering relevant topics in marketing
messages to customers. This approach is more of a psychological approach. The goal is to prepare
a message that inspires customers to do something by appealing to one or more psychological
attributes, such as greed, fear and the need for acceptance.
For example, television commercials often ask viewers if they use a product or service.
The ad might make reference to the viewer's financial situation, such as having large credit card
bills. If the viewer has credit card debt or can relate to that situation, with the accompanying
anxiety and needing help to address the problem, the ad may elicit the psychological response and
consumer behavior the advertiser is looking for. That is, the viewer calls the phone number
provided or goes to a website, gets more information and becomes a customer.
Demographic data contributes to how a message is formulated, which markets are the best
targets, the timing of message delivery and other criteria. In this context, both demographic and
psychographic data complement each other, resulting in messages that go to the right audience
with the most effective content.
Customer demographic data is also useful when trying to manage customer experience.
Find out more about customer experience management.
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Customer’s Pain Point
Marketers always seem to be talking about pain points.
Unlike a bum hip aggravated by the weather, however, the kind of pain points marketers
typically encounter can be a little more complicated.
Today we’ll be diving into the world of customer pain points – specifically, what pain
points are and how you can position your company as a potential solution. We’ll be taking a look
at several real-world examples to see how marketers overcome some of the most common
customer pain points, as well as general tips on how to make yourself indispensable to your
prospects at the right time, in the right place.
Before we get to the examples, though, let’s start with the basics.
Also check out our free ad copywriting guide, 10 Tricks to Get the Click!
What Are Customer Pain Points?
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A pain point is a specific problem that prospective customers of your business are
experiencing. In other words, you can think of pain points as problems, plain and simple.
Like any problem, customer pain points are as diverse and varied as your prospective
customers themselves. However, not all prospects will be aware of the pain point they’re
experiencing, which can make marketing to these individuals difficult as you effectively have to
help your prospects realize they have a problem and convince them that your product or service
will help solve it.
Although you can think of pain points as simple problems, they’re often grouped into
several broader categories. Here are the four main types of pain points:
 Financial Pain Points: Your prospects are spending too much money on their current
provider/solution/products and want to reduce their spend
 Productivity Pain Points: Your prospects are wasting too much time using their current
provider/solution/products or want to use their time more efficiently
 Process Pain Points: Your prospects want to improve internal processes, such as assigning
leads to sales reps or nurturing lower-priority leads
 Support Pain Points: Your prospects aren’t receiving the support they need at critical stages
of the customer journey or sales process
Viewing customer pain points in these categories allows you to start thinking about how to
position your company or product as a solution to your prospects’ problems, and what is needed
to keep them happy. For example, if your prospects’ pain points are primarily financial, you could
highlight the features of your product within the context of a lower monthly subscription plan, or
emphasize the increased ROI your satisfied customers experience after becoming a client.
However, while this method of categorization is a good start, it’s not as simple as
identifying price as a pain point before pointing out that your product or service is cheaper than
the competition. Many prospective customers’ problems are layered and complex, and may
combine issues from several of our categories above. That’s why you need to view your customers’
pain points holistically, and present your company as a solution to not just one particularly
problematic pain point, but as a trusted partner that can help solve a variety of problems.
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How Do I Identify My Customers’ Pain Points?
Now that we know what pain points are, we need to figure out how to actually identify
them. Although many of your prospects are likely experiencing the same or similar pain points,
the root cause of these pain points can be as diverse as your clientele. That’s why qualitative
research is a fundamental part of identifying customer pain points.
The reason you need to conduct qualitative research (which focuses on detailed,
individualized responses to open-ended questions) as opposed to quantitative research (which
favors standardized questions and representative, statistically significant sample sizes) is because
your customers’ pain points are highly subjective.
Even if two customers have exactly the same problem, the underlying causes of that
problem could differ greatly from one customer to another.
There are two primary sources of the information you need to identify your customers’
pain points – your customers themselves, and your sales and support teams. Let’s take a look at
how to get the information you need from your customers first.
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Conducting Qualitative Customer Research
One of the best ways to learn your customers’ biggest problems is by really listening to
them. Recently, we held our first Customer Insight Round Table event, in which we invited 11
WordStream customers to spend some time at our offices in Boston to share their experiences –
good and bad – with us openly and honestly.
A WordStream client evaluates a series of problems and proposed solutions during our
first Customer Insight Round Table event
As part of this process, we asked attendees to participate in an Ideation & Design workshop,
a collaborative, hands-on session in which our customers identified some of their biggest
challenges as online advertisers. This helped attendees remain focused on the problems they shared
as advertisers, rather than as individual entrepreneurs and business owners, and also allowed us to
focus on solving problems that were within our control.
We learned things about our customers’ problems that even the most detailed questionnaire
could never unearth, and it gave us the opportunity to discuss those issues within the context of
wider problems that our customers are experiencing. This gave us a remarkably detailed view of
our customers’ pain points as well as a broader view of how the current economic climate and
other factors are affecting real businesses.
This kind of event is invaluable to you as a business. Not only does it allow you to converse
at length with the people who are actually using your products, but it also creates an environment
in which problem-solving is a collaborative process.
Conducting Qualitative Sales Research
The other research resource at your disposal is your sales team. Your sales reps work on
the frontlines of the battle for the hearts and minds of your prospective customers every single day,
which makes them an invaluable source of feedback on your prospects’ pain points.
However, as valuable as your sales team’s feedback can be, it’s important to distinguish
your sales reps’ pain points from your prospects’ pain points; your sales reps’ problems may be
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very real, but you’re not building a product or providing a service to make your sales reps’ lives
easier (at least, not in the context of this article).
It’s crucial to separate operational challenges from genuine customer pain points. For
example, let’s say your reps are experiencing a slow quarter, and sales goals have been missed for
two consecutive months. Here’s where things can get complicated. Facing the prospect of missing
another sales target, your reps might be tempted to bemoan a lack of qualified leads or the quality
of the leads assigned to them. While this may be a legitimate complaint, it’s got nothing at all to
do with your customers’ pain, so you have to filter out the noise to get to the actual problem.
This word cloud of things advertisers would change about their campaigns offers us a lot
of insight into our customers’ pain points
Now let’s say that your reps tell you that they’ve had several potential deals fall through
because the prospect told them that PPC is “too complicated.” This is a genuine customer pain
point. This speaks to several potential pain points, including a lack of experience or training, a
poor understanding of PPC best practices, badly allocated ad budget, a fundamental
misunderstanding about your product and what it does, and dozens of other potential problems.
Regardless of what’s causing the pain, you now have a pain point you can counter in your
marketing. Remember our list of pain points from earlier in this post? Let’s take a look at the pain
points we identified, and see how we could address them in our marketing:
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 Financial: Emphasize lower price point (if applicable), highlight the average savings of your
client base, use language that reiterates better ROI
 Productivity: Highlight reductions in wasted time experienced by current customers,
emphasize ease-of-use features (such as at-a-glance overviews or a centralized dashboard)
 Processes: Mention current/planned integrations with existing products/services (i.e. Slack’s
integration with Dropbox and Salesforce), highlight how your product/service can make
typically difficult/time-intensive tasks easier
 Support: Help the prospect feel like a partner by highlighting your after-market support, use
connecting language (“us,” “we” etc.) in your copy
It’s important to remember that you can’t “prove” you can ease your prospects’ pain, and
what works for one customer may not work for another. That’s what makes social validation so
crucial when using customer pain points in your marketing; word-of-mouth recommendations and
user reviews become much more persuasive when a prospect already believes your product or
service could make their life better.
That’s why you should be using customer testimonials and other social validation tools in
your marketing – a great review or glowing testimonial can sell your product far more effectively
than even the most silver-tongued salesperson.
Customer Profiles: How to Target Your Ideal Customer (With Real Examples)
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Post summary:
 As marketers, we’re told that 50% of our budget is wasted on unqualified traffic and
leads. But, what if you could reduce that wasted spend by being more focused on
who you target?
 Customer profiles (or buyer personas) are designed to help you understand who your
ideal customers are. By doing so, you can craft marketing messages that address their
challenges and needs, and attract them to your business.
 Here, we share what customer profiles are, how you can create them, best practice
tips and how they can benefit your business. Plus, we provide you with 3 examples to
help inspire you when creating your own.
What is a customer profile?
Before we go any further, here’s the official definition of a customer profile:

A customer profile tells you everything about the people you want to bring onto your
customer list.
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It includes common details they tend to share, such as their:

 Age
 Location
 Hobbies
 Job title
 Income
 Purchasing habits
 Goals or motivations
 Challenges or pain points
A B2B customer profile should also include the firmographic data of their targets—such
as their company size, employee count, or annual turnover.
Customer profiles are often referred to as buyer personas or user profiles. Each term
essentially means the same thing: A single document that lists key demographics, interests, and
behaviors of your target customers.
The benefits of customer profiles
Now we’re clear on exactly what a customer profile is, you might be questioning whether
you actually need them.
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Why do marketers consider customer profiles so important?
1. It's easier to find new leads

When you put together a user profile, you’ll know the exact traits your target customers
share. This data is a goldmine for sales teams because they can use the information you’ve already
collected about your customers to actively generate new leads that fit the same criteria.
For example: If your customer profile notes that leads are in-house marketers involved in online
communities, you’d head to sites like Growth Hackers or Hacker News to find them. It’s much
easier than running generic (and costly) Facebook ads to people who might be your ideal customer,
right?
You’re heading to the websites they engage with in their own time—not invading their
space elsewhere on the internet.
2. You can quickly qualify new targets

How many of the leads who make their way to your pipeline actually convert? If 100 leads
come through to your sales team, just 25% of them might actually be the people you want to
convert. But it doesn’t make sense to nurture them all; you just need to identify the leads most
likely to hit “purchase”.
So, for each new lead that comes in, map them across to your customer profile using the
data you’ve already collected about them. Prioritize nurturing those who are a match.
3. It helps with account-based marketing

It’s no secret that personalization is here to stay. One report found 52% of consumers are
willing to share personal data in exchange for personalized offers or discounts—something you
can use customer profiling to take advantage of.
When you’re using an account-based marketing strategy, you’ll need to personalize the
communication your sales team have with each lead. It’s tough to do that on a large scale when
you don’t have much time to invest into learning about each individual lead.
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But when customer profiles come into the mix, you can focus on their pain points they
share.
You’ll be able to aggravate the problems your leads are facing when they match your buyer
persona—and prove that your product or service can solve it.
4. Build customer loyalty
Your job doesn’t end when a lead becomes a customer. The most successful
businesses focus on customer retention - keeping existing customers around, encouraging them to
become loyal to your brand, and persuading them to purchase time and time again. There’s a reason
for this: It’s five times cheaper to retain an existing customer than acquire a new one.
Customer profiles slot in perfectly here because you can use a lead’s interests to personalize
the post-purchase customer marketing campaigns you’re sending to them. Why wouldn’t they want
to continue purchasing from your brand if you’re going above and beyond to send more free,
relevant content in their direction once they’re on-board?
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How to create a customer profile
You’ll need to make a customer profile as soon as possible to experience those

benefits. But don’t fall into the trap of assuming the traits your target customers share. Customer
profiles that are based on guesswork are usually inaccurate. You might find target leads have traits
you never thought of—or don’t have the qualities you thought.
The biggest challenge here is accessing enough data to provide a comprehensive overview
of your customer.
In fact, it's a challenge that 1 in 2 marketers currently face with 57% saying they miss
important data points to provide a full overview of their customer.
Decision Making Process
Decision making is the process of making choices by identifying a decision, gathering

information, and assessing alternative resolutions. Using a step-by-step decision-making process
can help you make more deliberate, thoughtful decisions by organizing relevant information and
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defining alternatives. This approach increases the chances that you will choose the most satisfying
alternative possible.
Step 1: Identify the decision
You realize that you need to make a decision. Try to clearly define the nature of the decision
you must make. This first step is very important.
Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is
needed, the best sources of information, and how to get it. This step involves both internal and
external “work.” Some information is internal: you’ll seek it through a process of self-assessment.
Other information is external: you’ll find it online, in books, from other people, and from other
sources.
Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out
each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or
resolved through the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching
your goal. Finally, place the alternatives in a priority order, based upon your own value system.
Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems
to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5
may very likely be the same or similar to the alternative you placed at the top of your list at the
end of Step 4.
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Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative
you chose in Step 5.
Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified need, you may
want to repeat certain steps of the process to make a new decision. For example, you might want
to gather more detailed or somewhat different information or explore additional alternatives.
References:
https://www.techtarget.com/whatis/definition/customer-demographics#:~:text=Customer%20
demographics%20are%20categories%20of,categorize%20customers%20and%20potential%20cu
stomers.
https://www.wordstream.com/blog/ws/2018/02/28/pain-points#:~:text=What%20Are%20Cust
omer%20Pain%20Points,as%20your%20prospective%20customers%20themselves.
https://www.umassd.edu/fycm/decision-making/process/#:~:text=Decision%20making%20is%
20the%20process,relevant%20information%20and%20defining%20alternatives.
https://online.hbs.edu/blog/post/types-of-customer-needs#:~:text=What%20Are%20Customer
%20Needs%3F,which%20solution%20the%20customer%20purchases.
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Lesson 3 - Customers - 1

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LEARNING MODULE IN TECHNOPRENEURSHIP

AGUSAN DEL SUR STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY

At the end of lesson, the students will be able to:

A customer is an individual or business that purchases another company's goods or

Businesses frequently study their customers' profiles to fine-tune their marketing

Customer service, which strives to ensure positive experiences, is key to a successful

Customers vs. Consumers

Three (3) Main Types of Customer Needs

Customer demographics are categories of consumer populations that are useful to a

What is customer segmentation?

Demographics and demographic segmentation are a key element of customer

Businesses can take a variety of approaches to customer segmentation.

Why analyze customer demographics?

Sources of Customer Demographic Data

Social media is an important source of data on demographic characteristics. Using

Demographic data includes a range of personal information.

Demographics versus Psychographics

Demographics is largely statistical data from specific metrics. Psychographics includes

Customer’s Pain Point

Marketers always seem to be talking about pain points.

What Are Customer Pain Points?

How Do I Identify My Customers’ Pain Points?

Conducting Qualitative Customer Research

Conducting Qualitative Sales Research

What is a customer profile?

Before we go any further, here’s the official definition of a customer profile:

It includes common details they tend to share, such as their:

The benefits of customer profiles

Why do marketers consider customer profiles so important?

1. It's easier to find new leads

2. You can quickly qualify new targets

3. It helps with account-based marketing

How to create a customer profile

You’ll need to make a customer profile as soon as possible to experience those

Decision Making Process

Decision making is the process of making choices by identifying a decision, gathering

Step 2: Gather relevant information

Step 3: Identify the alternatives

Step 4: Weigh the evidence

Step 5: Choose among alternatives

Step 6: Take action

Step 7: Review your decision & its consequences

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