Hi!
I teach a couple of classes: brand management and strategy.
Thanks for reading Above Average Intelligence: Dave Wakeman’s Newsletter! Subscribe for free to receive new posts and support my work.
Subscribed
During the holidays, I had a bunch of work done at my house. This forced me out of the house and into my MIL’s house for several weeks.
This gave me the time to unplug and do some work on using my classes to create assessments for the industries I talk to and work with.
One area that has a lot of overlap is retail.
I put together a retail assessment and I wanted to share that with you this morning.
Retail Customer Clarity Assessment: Do You Really Know Your Customer?
Introduction
This diagnostic tool helps retailers evaluate whether they truly understand their target customers or are operating on assumptions and hopes.
How to Use This Tool
- Rate each question from 1-5 (1 = Strongly Disagree, 5 = Strongly Agree)
- Add up your scores in each section
- Review your results and recommended next steps
Section 1: Customer Definition
Core Questions
- We can describe our ideal customer in specific demographic AND psychographic terms
- We know exactly why this customer would choose us over competitors
- We have consciously chosen which customers we DON’T want to serve
- We can name three specific customer segments that drive most of our profit
- Our entire team can consistently describe our target customer
Quick Analysis
Total Score: __/25
- 20-25: Clear customer definition
- 15-19: Definition needs work
- 0-14: No clear target customer
Section 2: Customer Behavior Understanding
Core Questions
- We know our customers’ typical path to purchase
- We can list our customers’ top three alternatives to buying from us
- We understand what triggers a purchase decision
- We know why some potential customers choose not to buy from us
- We can predict our customers’ next likely purchase
Quick Analysis
Total Score: __/25
- 20-25: Deep behavior understanding
- 15-19: Behavior gaps exist
- 0-14: Limited behavior insight
Section 3: Customer Value Alignment
Core Questions
- Our pricing aligns with our target customers’ expectations
- Our store experience matches our target customers’ preferences
- Our product mix reflects our target customers’ lifestyle
- Our location(s) are convenient for our target customers
- Our marketing speaks directly to our target customers’ values
Quick Analysis
Total Score: __/25
- 20-25: Strong value alignment
- 15-19: Misalignment present
- 0-14: Significant misalignment
Section 4: Customer Data Usage
Core Questions
- We regularly analyze our customer purchase data
- We track and use customer feedback systematically
- We know our customer retention rate by segment
- We measure customer lifetime value
- We use customer insights to drive business decisions
Quick Analysis
Total Score: __/25
- 20-25: Data-driven decisions
- 15-19: Limited data usage
- 0-14: No data culture
Section 5: Customer Evolution
Core Questions
- We monitor changes in our customers’ preferences
- We actively plan for next-generation customers
- We understand how economic changes affect our customers
- We track shifts in our customer demographics
- We adapt our offering as our customers’ needs change
Quick Analysis
Total Score: __/25
- 20-25: Forward-looking
- 15-19: Reactive stance
- 0-14: Static perspective
Red Flag Indicators
You likely don’t know your customer if:
- You say “everyone” is your customer
- You can’t name your top three customer segments
- You don’t know why customers choose competitors
- Your marketing targets “anyone who might buy”
- You haven’t updated your customer profile in years
Overall Analysis
Total Score: __/125
- 100-125: Customer Clarity Leader
- 75-99: Basic Customer Understanding
- 50-74: Significant Knowledge Gaps
- 0-49: Operating on Assumptions
Strategic Implications of Your Score
100-125 Points: Customer Clarity Leader
- Focus on anticipating future needs
- Deepen relationship with core segments
- Explore adjacent customer groups
75-99 Points: Basic Understanding
- Formalize customer insights
- Fill specific knowledge gaps
- Align operations with customer needs
50-74 Points: Significant Gaps
- Conduct customer research
- Rebuild customer profiles
- Realign business model
0-49 Points: Operating on Assumptions
- Complete customer discovery needed
- Reevaluate target market
- Rebuild from customer up
Next Steps
Immediate Actions
- List your actual top 20 customers
- Identify common characteristics
- Interview your best customers
- Track who’s not buying (and why)
- Document your customer definition
Common Pitfalls to Avoid
- Assuming demographics tell the whole story
- Trying to appeal to everyone
- Ignoring customer feedback
- Making decisions based on personal preference
- Failing to track customer changes
Do me a favor, hit reply and let me know if you like this.
Also, share it on the social media or with your friends and colleagues.
Dave