Successful business is based on loyal customers. It is well known that 20 percent of customers produce 80 percent of your sales. Still you need to deal with different types of clients to build customer loyalty.
In retail business shoppers can be broken down into five main types:
Loyal customers. Loyal customers are a small percentage of your customer base, but they can make up over 50 percent of your sales. They are the most valuable customers for your business, because they not only buy your products, but also recommend you to others. You need to be in touch with these customers on a regular basis. It is important to listen to their opinion and show how much you value them. Loyal customers are the basis of your business.
Discount customers. Discount customers search for the cheapest products. They are mostly valuable during sales, as they help ensure your inventory is turning over. Discount customers are the key contributors to your cash flow.
Impulse customers. Impulse customers do not plan their shopping activities, and they often do not know what exactly they need. They are open to your recommendations and grateful for advice. When impulse customers are satisfied with your services, they may become loyal customers.
Need-based customers. Need-based customers are driven by a specific need. They usually know what exactly they need and they want to be served quickly. They offer the greatest long-term potential. Need-based customers are difficult to serve, and they can be easily lost. But if they are well-taken care of, they can become your loyal customers.
Wandering customers. For many retailers wandering customers are the largest segment in terms of traffic, while, at the same time, they make up the smallest percentage of sales. They shop for experience and communication. You should not ignore this type of customers because they share their experiences with other people, who may become your loyal customers. You need to find the balance between providing good service and minimizing the time spent with wanderers.
Understanding your customers types will help you turn them into loyal customers and grow your business. At the same time, make sure that your loyal customers have a positive experience every time they enter your store.