Retail Customer Clarity Assessment: Do You Really Know Your Customer?
A FREE Tool
Hi!
I teach a couple of classes: brand management and strategy.
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