To better understand your customer’s behaviors, it is helpful to identify and categorize them. Then you can develop effective business strategies to increase sales.
Below are the five main types of customers in the retail industry.
The Main Types of Customers
The five primary types for retail businesses are:
Let’s discuss each one to differentiate the differences between them and determine how best to please them as a company.
Defining Loyal Customers
This portion of your target audience is loyal and value the product or service that your organization provides them. This type of person is likely to recommend you to their friends and family.
While this type of consumer usually only accounts for a small part of your company’s sales, they have the potential to have a bigger impact because of the referrals they make to loved ones. Thus, they need to be an important part of your business growth strategy, along with an Application Funnel to attract leads and convert them into paying customers.
Impulse Customers: Who are They?
These are the customers who buy on a whim, without doing research or taking time to consider their purchase. They usually buy an item based on a recommendation.
This type of customer will boost your organization’s profit margins. Updating them on new services and products you offer is essential.
Those who are receptive to sales are a substantial portion of your customer base. They are important because they help improve your inventory turnover ratio.
Discount customers are open to upselling. They are probably the least loyal part of your audience base, though, as they are receptive to sales, no matter who is offering the product or service.
This portion of your customer base is shopping based solely on their needs. In other words, they buy when they need and nothing more, making it difficult to upsell to them.
To help you retain this type of consumer, make an effort to have quality interactions with them. This action could be something that you do after determining why a product isn’t selling. The time spent with a need-based customer is a good investment because it can help them become loyal customers.
The most significant amount of traffic your organization will likely receive is from wandering customers. Yet, they are the smallest amount of sales.
This type of buyer does not have a specific need or want to fill. Instead, they are enjoying the experience of shopping itself. While they are not the most profitable ones for your business, they can communicate their love of a product or service to other people, which makes them influential and can boost sales.
Concluding Thoughts on Customers
Understanding the types of customers that you have will help you decide how to market effectively to them and maximize your interactions. Keeping each one happy takes a slightly different strategy, and it is vital to spend the effort doing so to grow your business.
With each of the major types of customers having different needs and intentions, you can customize your offers to appeal to them. Doing so will help you get an edge over competitors.