Why every Edinburgh business needs to understand their customers better
Running a business in Edinburgh can be both exciting and challenging. Edinburgh has a mix of locals, students and tourists ready to discover your business meaning there’s many opportunities but also great competition that can impact your business.
Businesses must offer more than just a great product or service to thrive, they need to truly understand their customers.
Lets explore why customer understanding is the foundation to long-term success, how Edinburgh’s unique market shapes customer behaviour and the practical steps you can take to get closer to your target audience.
Why customer understanding is crucial for Edinburgh businesses
Many business owners are confident they already know their customers but the chances are they don’t really. They probably see who places the order or walks through the door and thinks that it, but that’s really not enough.
Customer needs and wants change constantly, especially in a vibrant city like Edinburgh
Tourism creates seasonal shifts, meaning summer and winter demand will be totally different
Students and young professionals have different expectations than families or retirees have
When businesses fail to keep up with these shifts, their customers will find a more attractive business that meets their needs. Meaning you lose your business to competitors.
The cost of not knowing your customers
Imagine two businesses on the Royal Mile:
Shop A thinks everyone who walks past is a customer. They offer a wide range of products but don’t tailor their offers so visitors leave unsure of what they stand for
Shop B takes the time to truly understand who buys from them and why. They know that tourists look for authentic and local experiences so they offer a fun “Made in Edinburgh” product bundle
Take a guess who had higher sales, better reviews and more repeat customers?
When you don’t understand your customers you waste money on ineffective marketing, waste time developing products and services nobody wants and stagnate your growth.
How can you understand your customers better?
Here are 5 proven methods you can apply today to better understand your customers:
Talk to your customers directly
Ask them what brought them to your business, what stopped them buying and what would improve their experience.
Use feedback tools
Set up short surveys either online, via email or in store. This helps you gather quick feedback that can be used to define your customer journey.
Analyse customer behaviour
Check sales data, website analytics and footfall. Small insights, even things like the time of day customers shop with you, can be powerful data points to help you improve.
Create customer profiles
Building customer personas for your main customers can help you better understand them and keep them in mind when you are making business decisions. For example Tourist Tammy will be interested in authentic Edinburgh memorabilia and gifts whereas Student Samantha would prefer value and convenience.
Keep listening
Understanding your customers isn’t a one-off activity, it’s something you have to look at continuously so make sure you are regularly reviewing your insights and refining your personas.
Why Edinburgh’s market requires extra attention
Edinburgh combines a strong tourism trade driven particularly with the Fringe Festival and Hogmanay (New Years Eve) celebrations, a strong student population due to multiple celebrated Universities and a thriving young professional population. This means a one-size-fits-all approach won’t work.
How business coaching helps bridge the gap
Understanding your customers is easier with guidance. As an Edinburgh business coach I help local businesses to:
Identify blind spots in how they view and interact with customers
Develop systems for collecting and using customer insights
Turning understanding into action that improves customer journeys and increases returns
See what services I offer here
Final thoughts
Customer understanding isn’t just a nice-to-have. In Edinburgh’s competitive market it can be the difference between becoming the local favourite or the forgotten soul.
Start small, talk to yur customer and gather rich insights on their experience with your business. Use this knowledge to improve their experience.
If you’d like expert guidance on how to make this process easier, consider working with a local business coach.
Book a free consultation with an Edinburgh business coach today