Today, businesses have to compete with many suppliers with different products and different quality, with the change that customers today are less loyal to a supplier. Customers can switch from one vendor to another for the best prices for products and services.

We all understand that a great customer experience leads to a higher conversion rate. The closer you connect with your customers, the more personalized your approach will be. It can be beneficial for you, but it can also backfire if you don't understand that there are different types of customers.

Customer outreach helps your business gather customer information, build relationships and trust with customers. Because customers are the ones who bring in revenue for your business. Therefore, approaching customers is critical to help businesses survive, sell, increase competition and aim for sustainable success in the future.

Therefore, here are Different Types of Customers and How to Approach a customer. Let's explore.

General Information about Customers 

Who they are? 

A customer is an individual or business that purchases another company's goods or services. Customers are important because they drive revenues; without them, businesses cannot continue to exist. All businesses compete with other companies to attract customers, either by aggressively advertising their products, by lowering prices to expand their customer bases, or by developing unique products and experiences that customers love. Think Apple, Tesla, Google, or TikTok.

Who makes up the base of customers?

In sales, business, and economics, a customer is someone who buys something from a seller, vendor, or supplier in exchange for money or something else of value. This person is also called a client, buyer, or purchaser.

Clients versus Consumers

People often use the words "customer" and "consumer" interchangeably, almost the same thing. But there is a small difference. Consumers are people or businesses that use or use up goods and services. Customers are the economic buyers who buy goods and services. Customers can also be consumers, but they can also be customers on their own.

Why is knowing your customers pivotal ?

Knowing your customer is knowing your market

You may have heard that over 20% of businesses fail in the first year and that 50% fail within the first five years. You may not know that most of these businesses fail because of what the Bureau of Labor Statistics calls “No market need.” 

Providing a product or service that meets a market need is something entrepreneurs refer to as Product-Market Fit. One popular tool used to develop a Product-Market fit is the Value Proposition Canvas. At the center of the Value Proposition Canvas are two components, Value Map and Customer Profiles. Only by understanding your customers can you create a value proposition that meets their needs.

As the former chairman of Tampa Bay Wave, a Tampa based startup accelerator, I have had plenty of opportunities to mentor young entrepreneurs. Many of these entrepreneurs were in what Tampa Bay Wave refers to as the Build phase. Companies in the build phase were still working toward achieving product-market fit. The companies who achieved a product-market fit and progressed from the Build phase were those who spent a lot of time learning about their customers and adapting their value propositions to what they learned. 

Knowing your customer means adapting to changing needs

We already discussed the importance of product-market fit in the success of young companies, but what about more established companies. There have been many high profile examples of established and successful businesses, even one-time market leaders, failing due to losing sight of the market. These failures are often considered failures to adapt to changing market demands. How does this happen? By not knowing your customers. 

Knowing your customer means knowing where to reach them

From the earliest days of business, merchants and craftsmen knew it was essential to reach their customers and inform them about their products or services. In ancient times this was relatively simple as there were not many channels for their messages, and they rarely had to reach people farther than their town. 

Today’s consumers split their time between the real world and an online world and consume media from an infinite number of providers. It is no longer possible to reach customers without understanding their habits. When you know your customers, you know what media they use and how best to reach them with messages about your product or service. 

Once you know your customers, most media can provide useful information about their consumers. For example, magazines and newspapers have long provided potential advertisers with audience insights. Television shows can provide viewership statistics. Online channels such as social media, blogs, and websites can give detailed information about their visitors. Advertising research firms can provide insights into audiences if you are still uncertain about where to find your customers. 

Knowing your customers means you speak their language

For any advertising to succeed, you have first to gain a viewer’s attention, then provoke interest, stimulate desire, and finally prompt action. All of these are easier to do this when you know your customer’s interests. Are you customers into sports, then maybe a sports-themed ad would catch their attention. Perhaps an endorsement by a star athlete would provoke interest.

Think of an advertisement as a one-time chance to impress someone (such as a boss or potential love interest). Sure you could go in cold and hope that what you have to offer is enough for them to spark an interest. However, wouldn’t you be more effective if you knew something about their interests and goals beforehand?

Knowing your customers help you build strong customer relationships

Conventional wisdom dictates that it is more costly to acquire a new customer than to keep an existing customer happy. Customer experience and customer satisfaction have become focus areas for many companies wishing to maximize their customers’ lifetime value. Companies that know what their clients want and expect can also customize the customer experience to create loyalty and repeat business.

Business is not easy, and there are many challenges to overcome. Many of these challenges arise from not knowing your customers as well as you think. Developing a full picture of your customers grounded in actual data is vital for any business that intends to succeed. One of the first steps you should take to build your customer profiles is to determine your primary target audience.

6 Tips for Understanding Your Customer and Your Business Competition

Use syndicated research to gain a 360-degree view.

Conducting do-it-yourself surveys or diving into web data may seem like a natural step, but you should go further than that to grasp the full picture.

Surveying your customers or analyzing data from your own website alone could result in a substandard pool of information available to you. Surveys can be answered by the most responsive or positive of your customers. Website analytics show customer activity but miss potential customers and their needs.

Syndicated, third-party research can reach into trends from all consumers, not just those current among your customer bases. 

Using market research to analyze the customer on multiple levels will help you evaluate the demand for a product/service, and whether expanding into a potential new market is worthwhile for your company.

Ask these six key questions about your customers.

Explore fundamental questions that shed light on customer needs and their purchase situation:

• Who is the customer?
• What does the customer want to buy?
• When does the customer want to buy?
• Where does the customer buy?
• How does the customer pay?
• What price is the customer willing to pay?

Identify important consumer segments

As you conduct a customer analysis, identify consumers segments that share common characteristics. These may include demographic factors such as age, gender, education, income, occupation, and place of residence, or softer variables such as lifestyle and values. 

Evaluate consumer motivation.

Researching consumer motivation may be a particularly fruitful source of innovation.

As Scott Anthony, coauthor of the book Dual Transformation: How to Reposition Today’s Business While Creating the Future, describes in the Harvard Business Review, simply asking “what job is the customer trying to get done?” can reveal the frustrations and desires that drive purchases.

When you find a job not done well — for instance, when a customer’s key criteria is not being met, or when there are barriers constraining consumption — you can begin to identify possible opportunities for business innovation and expansion.

As an example, one of MarketResearch.com's clients, a major manufacturer in the construction industry, told us, "We use market research to get a better understanding of consumer motivation. What portion of customers is opting for lower-cost brands that are 'good enough?' How can we account for differences between specific types of consumers and how they approach the buying process?"

These type of data-driven insights can be used to guide future product development and marketing strategies to boost your bottom line.

Do a competitive analysis.

Knowing who your key competitors are and assessing their strengths and weaknesses is another essential step that can illuminate specific growth strategies and ways to differentiate your products and services.

• When analyzing the competition, consider the following:
• Who are the main industry participants, and what is their market share?
• What products or services do they sell, and what is their value proposition?
• Which products and brands are growing more significantly and why?
• What are the strengths and weaknesses of your competitors?
• What strategies can you employ to build an advantage?

Consider your indirect competitors as well.

You may also want to look closely at indirect competitors. For example, airlines may want to consider how else people travel long distance (via bus or train), and how they can persuade customers to take a plane instead. Southwest’s low-cost airline service attracted people who might otherwise take the bus or not

What are the types of customers? Why should you handle them differently?

Each customer has a different personality, and each person goes through a different phase in the funnel. For that reason, having the same approach of handling all of your customers can lead to a bad customer experience.

If you think you'll have a lot of time to get it right because you're a favorite brand, think again. Imagine losing a quarter of your customers in just one day. Good. Because that's exactly what can happen after a bad customer experience. In America, even if people love a company or product, 59% will leave after some bad experience, 17% after only one bad experience.

32% of all customers will stop doing business with their favorite brand after a bad experience. In Latin America, 49% say they'll leave a brand after a bad experience.

With all this in mind, instead of treating all your customers one way, if you segment your customers into different stages and treat them in the right way. You will be able to make a big difference in brand reputation and generate quality revenue streams.

Types of customers: Before the Purchase

1. The Lookers 

They are new people who are just looking at the products or services you offer. They may also be looking at your competitors. Currently, they have shown their interest, but have not made any decisions yet. For these types of clients, you need to know how to get their attention.

How to Approach Them?

Make your website look attractive. A website optimized for SEO, visually appealing and easy to navigate will attract them by offering discounts on products, giving away discount codes, or always reminding them to continue buying when their favorite shopping cart. they are having product pending payment.

2. Discount customer 

Discount customers are the type of customers who see value in the product you offer but want to buy at a discounted price. Selling products to them is not possible. Discount customers often search for more information about the terms and discount policy you provide. Once the deal is over, it's hard to keep customers off. If you are offering a service at a discounted price, the discount customers will be the ones who leave when the offer ends. To increase your chances of retaining this group of customers, you need to make sure to show them that they not only get a discount on the product, but also get great customer service when making a purchase.

So, How to approach these types of customers?

Offer added value: To keep customers off, you need to make them understand the value you're adding to your product even at a discounted price, something they can't get elsewhere. That makes them feel that they get a good deal.

Explain the deal: Clients with discounts are often looking for the best deals, so they want to understand the exact offers and terms you offer. Therefore, provide details of the necessary terms of the agreement to avoid any confusion.

3. Researchers

Researchers will evaluate reviews, compare and contrast product features and rate service levels among vendors or retailers. Their research will likely take place online and in store. These types of customers will leave your store if your product information is less compelling than your competitors. But if you can win the information race, they'll still be back for you.

So, How to approach them?

Provide detailed information about your products and the services you provide. Post FAQs, post pictures and instructional videos about your website or products to encourage, attract, and interest customers to review and evaluate your service. Besides, you can change the researchers' decisions by adding social evidence or case studies

Focus on value proposition: make them realize they're getting something that neither side can give them.

4. Impulsive customer

This is the type of customer that can make a buying decision immediately, as long as the conditions are right. You see, impulsive customer doesn’t need much convincing to make a purchase. You don’t need to warm this prospect with value proposition too much. Also, the fewer steps involved, the higher the incidence of impulsive customer purchases. Eliminate any distractions and unnecessary steps to ensure that they have a smooth path to the completion of the purchase process.

How to approach these types of customers?

Simplify the checkout process: make sure you're on top of the simplest checkout step, which includes less information and fewer clicks

Urgency is also relevant to this type of customer. Give them deals with deadlines to create urgency, and push them to move into the buying process quickly.

5. Potential customer

A potential customer is a customer who just started your sales funnel. In fact, this is not your customer yet. However, you have hope to change that. They are leads that need nurturing before making a buying decision.

How to approach them?

Show potential customers what they can get out of your product. You can either do it yourself or direct him to a resource like a landing page or a case study that will do it for you.

Make sure potential clients know they can ask for help or advice at any time. Even if the customer wins they need it immediately, they will appreciate the offer.

6. Cautious consumers

Not all customers are Internet savvy and buying online is a major hurdle for online entrepreneurs. Consumers are very cautious and always learn about your business to see if it is safe and reliable. These types of customers will give up and stop buying from you if they find it unsafe.

How to approach them?

Commitment to payment security to customers. Actively assisting in customer care, making it easy for customers to contact and respond promptly. Show positive reviews from the media and customers about your business.

7. Online Shoppers

Some customers feel more comfortable shopping on e-commerce sites they know well. These may include a few important brands as well as trusted markets like ASOS, Amazon. However, online stores also have plenty of opportunities to be a favorite for big-name discerning shoppers - as long as both the store and the website meet expectations.

How to approach them?

List your products on trustworthy websites; Get your own ecommerce website up to the top. Offer leads and loyalty programs.

Types of customers: After the Purchase

8. New customer

New customers make their first purchase. They are still trying to understand your product and need guidance. This is the stage when you make a lasting first impression.

How to approach them?

You can earn a long-term customer by investing some time in explaining how your product works and making sure new customers know how to use it. You can do that with the right referral process.

Even if you provide an automated referral service to a customer, have the option of direct customer service. It will go a long way in situations when the client has a question not covered in the introduction.

9. Active Customers 

Active customers are those who are actively using your product or service. But they are not your loyal customers yet. This means, if your competitor offers a better deal, active customers are likely to convert. Hence, it is important to nurture them properly, instead of ignoring them for using your product.

How to approach these types of customers?

Focus on the wishes of the customers. Customers are here to achieve their goals. For that reason, if you strive to lead your customers to achieve their goals, it will make them stick with you for the long term. In addition, engagement is what influences the decision to stick with a brand. If you take care of them along the way, they'll think twice before deciding to switch to your competitors.

10. Unhappy Customers 

Unhappy Customers are the most delicate ones to handle as soon as possible. These are customers who have used your product or service experience but are not satisfied. Failure to take care of unhappy customers at the right time can create a social media crisis, a negative reaction and a wave of brand boycott.

It is important to treat unsatisfied customers in the right way and at the right time.

How to approach them?

Subscribe to customer service channels and social media so you can spot complaints and negative comments quickly. Resolve complaints promptly as soon as possible to avoid the worst possible situations.

Proactively chat directly and ask customers for feedback. This way, you are solving the problem from the very beginning and preventing happy customers from turning into angry customers.

11. At-Risk Customers 

At-Risk customers are those who may have stopped using your services because they lost interest, or have chosen to use a competitor's service.

How to approach them?

You should try to personally contact these customers to check out why they are not using your service lately. But you should make sure you don't disturb them in this way.

Some customers may have made a decision, but a few may change their decisions based on your interactions with them. So this is definitely worth a try. Again, understand their pain points and try to fix them.

12. Lapsed customer

They have left, but did they really leave? Sure, you haven't provided enough value or your customer service is lacking. You made them angry and they shut down your brand.

We humans, we like familiar things. We hate changes in general. If you manage to get rid of any issues, your customers can come back.

How to get lapsed customer comeback?

Before you reach out to these types of customers, make sure you've fixed all the problems. There will be no second chance, therefore timing is crucial. Prepare some great deals or a new product, knowing your problem is gone. Then ask the customer to join you again.

Types of Customers: Loyal

13. Loyal customer

Customer loyalty is very important to any business. Loyal customers are the best type of customers to have for your business. They stay here as long as you make a sale. These types of customers keep coming back to you to buy different products and services and they seem impressed with your brand.

How to approach them?

Introduce your loyal customers on their case studies or testimonials. This will make them feel more valuable and you have more social proof to add to your website.

Learn from their experience: find out what turned customer into a loyal customer and make sure you can make it happen with other customers.

14. Lifetime Customers 

Lifetime customers are even better versions of loyal customers. They have a lifetime subscription to use your product or service.

How to approach them?

You often tend to ignore the customer for life and focus on other customers. However, these are the customers that generate regular revenue for you and bring you many new customers. As a result, creating value for them and making them part of your community will make your lifetime customers feel special.

You can check out How To Approach Potential Clients

 FAQs: Your right to know! 

How much is a customer worth?

No matter what you sell or what kind of business you run, the customer is the most important part of your business. There will be no sales if there are no customers. So, they are a very important part of figuring out your marketing message and strategy.

Why is it usually the customer who has the upper hand?

The first reason why the customer is always right is that they decide whether a business will be successful or not. For example, customer complaints could hurt your business. By looking at your target market's complaints, feedback, and opinions, you can learn a lot about what your target market wants and needs from your service or product.

How do you talk to your customers?

Dave Oakes, an employee trainer, says that good customer service often comes from listening carefully and speaking clearly and eloquently. The first step in helping a customer is to listen to what they have to say. You must understand the customer's problem and show that you want to help

Who isn't a customer?

"Clients" is often used to describe customers who have a relationship with a supplier. Also, people who hire a professional are not called customers, but clients. For example, a lawyer has clients. When a customer buys something, the seller immediately moves on to the next one.

What does it mean when someone says, "Everyone has a customer?"

Everyone who works or sells something has customers. Like the saying "do unto others," the idea that everyone is someone else's customer should feel as natural as their skin. Or a "thought of the month" that we use when we need to. We don't just say we care about this.

Can you keep all types of customers satisfied?

The answer is yes. However, it will be easier if you know what kind of customers they are and what their needs are. Hope that the article of 16 Different Types of Customers and How to Approach Them is useful to you.

Discover more about WordPress and Magento themes and plugins, visit CMSmart.net

Thank you and best regards.

Rose Helen

Shop Owner

Rose Helen is a highly accomplished Ecommerce Project Consultant with a strong background in managing and guiding successful e-commerce projects. With her exceptional expertise and strategic mindset, she helps businesses achieve their goals in the digital marketplace.
With years of experience, Rose Helen possesses an in-depth understanding of e-commerce platforms, technologies, and best practices. She works closely with clients to analyze their needs, develop tailored strategies, and execute effective project plans that drive growth and success.
As an Ecommerce Project Consultant, Rose Helen excels at overseeing project lifecycles, from inception to completion. She ensures projects are delivered on time, within budget, and with the highest level of quality. Her exceptional project management skills enable her to effectively communicate with stakeholders, manage resources, and mitigate risks throughout the project journey.
Rose Helen is a strategic thinker who leverages her extensive knowledge to identify opportunities for improvement and innovation. She provides valuable insights and recommendations to optimize e-commerce processes, enhance user experiences, and increase online sales.
With her strong communication and collaboration skills, Rose Helen builds strong relationships with clients and key stakeholders. She fosters a collaborative environment, working closely with cross-functional teams to ensure seamless project execution and alignment with business objectives.
Beyond her technical expertise, Rose Helen is dedicated to delivering exceptional client service. She goes above and beyond to understand her clients' unique requirements and provide them with personalized solutions that drive tangible results. Her commitment to client success is evident in her approach and the long-term relationships she builds.
Rose Helen's passion for e-commerce, coupled with her extensive experience and project management skills, makes her a valuable asset for organizations looking to thrive in the digital landscape. With her guidance, businesses can navigate the complexities of e-commerce projects and achieve their objectives with confidence and success.