The 5 Types of Customers and how to win them to your business.
Successfully identifying these 5 types of customers will help grow one's business tremendously
Customers are the lifeblood for any business. Getting new customers into the door is already hard enough, successfully retaining customers over a long period of time is even more challenging.
Gone were the days where a single marketing strategy can be applied to all the different types of customers. The purpose back then was to get the message across to as many people as possible (Shotgun approach). Reaching the right customer at the right time with the right tool is far more efficient and effective in reaching out to the different types of customers.
Here’s the 5 types of customers that businesses will interact with:
They are exactly what it sounds like - bargain hunters.
This customer segment is difficult to capture with upselling techniques.
This customer segment is arguably the most difficult to convert into loyal customers. They rarely make purchases on impulse and scour through avenues of information for bargains.
However, bargain hunters are easily appealed through sales promotions and discounts.
The majority of customers belong into this category of customers.
Impulse shoppers generally purchase goods or services with no specified goal in mind, and this customer segment typically generates a significant portion of revenue for the business.
Impulse shoppers are open to upselling and have the highest potential to be loyal customers if the goods and services exceed their expectations.
This segment of customers is similar to impulse shoppers.
Wandering customers bring the largest amount of traffic but contributing only a small piece of the revenue of the business. They are also more drawn to the location of the business.
A common phrase that we often overhear from customers in this segment is that they are “just looking”.
They are more prevalent in traditional brick-and-mortar locations (shopping malls especially).
Need-based customers purchase a specific goods or service solely on their needs at that particular moment in time (right timing and product).
This typically happens after they have already done their research on the good(s) or service(s) with regards to price and quality.
They will also very quickly move onto the next location if the particular location does not have it.
This segment of customers have no brand loyalty and will switch if a better alternative can be found.
However, need-based customers can be converted into loyal customers with quality positive personal interaction.
The bread and butter for any successful business - loyal customers.
Just like the name suggests, loyal customers are customers who are convinced in your business and trust in your brand name to solve their needs.
They contribute the smallest segment in the customer base but are most likely to generate the most revenue over the lifetime of the customer.
Loyal customers are not only loyal towards your brand but they will also help recommend your brand to others via word of mouth marketing.
In fact, the insights of loyal customers on how to improve the business should be taken seriously as they are a microcosm of the wants of potential new customers.
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