Customers play a significant role in the success or failure of your business. In fact, the customer is the actual boss in all dealings and responsible for profits generated for your business. The customer is the one who uses the products and services and judges the quality of those products and services. Hence, it’s important for your business to prioritize and retain former customers as well as continually gain new customers to sustain and grow the business. A strategy to gain new customers includes segmenting your current customers into groups which will help determine how to satisfy and attract your desired customer group.
Your segmenting strategy should also take into account:
- Age group of the customers
- Geographical location
- Lifestyle of customers
- Social status of customers
Targeting the Right Customers
All customers fall within select groups, and it is your responsibility to know which group that is. It is also essential to know if you are reaching your desired targeted group(s). For example, funky designs and loud colors would be a hit among teenagers, whereas middle aged and the elderly would prefer subtle colors and sophisticated designs. Suits and khakis are extremely popular amongst men, whereas females prefer blazers and blouses. Know your target groups and plan accordingly.
Customers are often of the following types:
Loyal Customers. These customers may be less in number but promote higher sales and profit as compared to other customers. These customers are generally satisfied with your product or service and desire consistency and reliability. Loyal customers often require individual attention and rewards that demand quality customer service.
Discount Customers. Discount customers are also frequent visitors but they usually only make purchases when offered discounts on regular products and brands or buy only low-cost products. The greater the discount, the more likely this customer is to purchase.
Impulsive Customers. These customers are difficult to market to as they don’t have any specific item on their purchase list. Handling these customers is a challenge as they don’t look for particular products and are attracted to businesses that have many options to choose from with products and prices on display.
Wandering Customers. These customers are likely to generate the least profit as they are not sure of what they want to purchase or if they want to purchase. Additionally, these customers don’t usually have the finances available to make a purchase but may purchase at a later date dependent on whether they are still interested and have not found a better value elsewhere.
As you can see in the explanations above, loyal and repeat customers are ideal for most businesses. Nonetheless, it is necessary for you to study the behaviors of customers in your chosen demographic before connecting with them as it will help you to identify specific customer needs and respond accordingly. By identifying the behaviors of customers, you can easily create targeted strategies to attract and satisfy their wants and needs.
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Dr. Elijah Clark (February 16, 2023). Types of Customers [Web log post]. Retrieved from https://elijahclark.com/types-of-customers/
