Learn about how to start defining a customer and what are the different types of customers. Also, learn about the 3 ways to identify ideal customers.
If you are selling anything, whether you are offering a service or selling your unique product, one thing is certain, you would not be in business if you had no one to buy what you sell.
So you want to make sure you understand the people who keep you in business, – customers.
Just before you walk away and think you do, read this article to the very last word.
Many people do not know what a customer is, all the while thinking they do.
Who is this person who keeps you in business?
Without the customer, there is no business; so who is a customer, and what makes them a customer?
So let’s know who your customer is.
Table of Contents:
3 Ways To Define A Customer:
- Who Is A Customer?
- Types of Customers
- Reasons To Define Your Customer
- Ways to Define A Customer
- How To Determine Your Ideal Customer
Who Is A Customer?
Who is a customer or how do you define customers?
You need to know these people who keep you doing what you do.
A customer is either an individual or a business that purchases or buys another company’s goods or services, so customers are the people or businesses who patronize your business, buying your goods or services.
Customers are people who engage in transactions with you for mutual gain.
Customers are super important because they are the key drivers of revenues as a business.
Without them, your business would not exist.
No business would exist or survive without customers.
Customers are the reason businesses are in business.
And every business lives and strives to attract more customers.
Types Of Customers
Are there types of customers?
Well, the answer is yes, and knowing these differences in customer type can make the difference between a thriving business and a barely surviving one.
Often, the ability to know the different types of customers you have can keep you in business or out of it.
So, what are the types of customers that you have?
1. The Need-Based Customer
These kinds or types of customers are the ones who walk in the door with a specific product on their minds.
For this type of customer, it doesn’t matter whether your price or that your business offers a wide variety of products.
They come to you because they have something they want to buy on their mind.
The Need-based customer is the one who comes to your business intending to buy a specific product.
This is why they come.
Watch out, you will find that they go straight to the point and may not be easily interested in other deals.
When you observe this, just know you have got a need-based customer at your service, so you know how best to serve them.
2. The Discount Buyer
These are the hunters.
They are always patiently waiting for that “perfect deal.”
Just when you announce your price slash or your discount offer, they coming running in through the front door.
The discount buyer is that shopper or customer who looks out for when you’re having “a sale.”
They are always looking to see how they can get the best deals.
So, when you see them come, you know what package is best for them and what attracts them.
This helps you position yourself better to attract them to your business now you know what brings them in the first place.
3. The Loyal Customer
These are your homies literally.
These customers have your back year in, year out.
The loyal customers may make up the minority of your customer base, but fear not, – they generate a large (sometimes the largest) portion of sales.
Having these guys patronize your business can give you an almost predictable, consistent, and even an increasing revenue.
You can count on them to not wander off to the business next door, they would rather tell you what they don’t like and expect you to fix it than go off to get their needs met somewhere else.
So when next you see that guy who always makes it to your business, year in and out, it’s time to pay attention, – you have a loyal customer.
That’s great for your business!
4. The Lookers
Every business has this kind of customer.
They come in for window-shopping because well, – they either don’t know what they want to buy or they’re not sure what they want.
Don’t be surprised when you see them walk in the door and roam everywhere, wandering from item to item without ever really settling for a particular item.
This is normal.
Give them some time.
Usually, they make their first purchase after a while and then they come back and repeat the process all over again.
These are the wanderers, – give them time.
They’re still customers.
5. New Customers
These are the fresh breath of air!
It’s great to have a new face pop in now and then.
It reminds you that your fame is going places beyond the neighborhood.
Most times, you will notice there is an influx of new customers into your business.
Usually, they are relatively new.
In many cases, they enjoyed their last visit to your business and are craving the experience again.
Because of this, they pop in again to see what you have to offer.
If you pay attention and treat them well, you will see them more often.
So, do pay attention and you will have more of them calling in.
6. Impulse Customers
Every business has its dose of impulse buyers, and no, we’re not complaining.
What’s sweeter than having an unexpected sale because someone wasn’t sure if they wanted to get this product later and decided to just buy it now anyway?
Impulse customers are the guys who walk in without something specific on their minds and so, they end up purchasing products because it just feels okay to do so at that time.
The thing about these customers is that you cannot always predict them.
They can make a purchase when you didn’t expect and buy what you didn’t expect.
Whatever happens, be happy you’ve got them in your business.
Reasons To Define Your Customer
Every business wants to be successful.
Well, at least, we all say so.
But not every business knows what to do to be successful.
Before you can talk about what you do to your customers, you need to understand your customers so you can connect with them.
You need to be able to define your customers, this will help you to create personalized messages, content, products, and other things to ensure your customer gets their satisfaction.
How can you do this if you do not define your customer?
The reason you need to define your customer is that when you do this, it shows in your approach and your customers feel like they are being given special treatment and the belief that you think them valuable and important will turn them into loyal customers; so you can define them on the basis of behavior, demographics, or psychographics.
Ways To Define A Customer
Demographics include characteristics that are easy to categorize or sort like sex, age, ethnic group, location, income, and/or net worth.
Demographics are straightforward, but they don’t give you the between-the-lines.
So you do not have insight into things like customer motivation and some tradeoffs that may nullify financial implications.
Psychographic characteristics help to give insight into how your target audience or customers thinks as well as their values across a broad spectrum of topics.
When marketing, psychographic characteristics interpret how your prospects and customers feel about your products and issues.
For instance, do they purchase the highest quality products despite the price, do they hold on till you offer the best sale even when it’s past the season for that product?
Or do they seem to support small suppliers where there’s a connection to the producer?
Psychographic characteristics also can show you your customers’ interests.
This will enable you to determine the relative importance of various products.
This will usually include their hobbies as well as their other non-business interests.
Behavioral actions cover all the activities that your prospective and current customers have carried out in the past that influence or helps to predict what they are likely to do in the future.
When you follow the footprints of customers or prospects over time, you can determine where they are going.
Observing past buying behavior is an important attribute you need to adopt to help you in defining your customers.
This is also a great place to add that you should also look out for and examine your prospects’ other social media activities.
People leave footprints online, and being able to trace these digital footprints can help you identify and define your customers.
How To Determine Your Ideal Customer
1. Define Your Offer From The Customer’s Eyes
When you are trying to determine your ideal customer, you must answer the question they are asking as well: what will your product do for them?
How does your product or service solve their problem and what exact problem does your product solve?
How does your product or service work to improve the life of your customer?
Answering these questions can help you define your ideal customer.
2. Determine The Ideal Buyer For Your Product/Service
You must take it further to help you determine your ideal buyer.
Ask yourself questions like what is their education level?
What is their occupation or what business do they do?
Do you know what their financial situation looks like now or about their work-life?
3. What Problems Are They Trying To Solve?
What are your ideal client’s problems?
Remember, you are not just selling a product or service.
You are selling a solution to a problem.
And people buy solutions, not products.
You’re in for a lot of business if you understand your ideal client’s problems.
Problem-solving should be the primary focus of your business any day and at all times.
Research has shown that 74% of buyers go for salespersons who are first to add value and insight in their buying process.
These are people who understand that they are in business to solve problems, not sell products or services.
4. Do Your Product’s Benefits Match Your Ideal Customer’s Needs?
You must be able to determine the specific benefits your customer is seeking as they buy your product.
What benefits are the most important to your ideal customer out of all the benefits you offer in your products?
This benefit should address the most pressing needs of your ideal customers.
Also, answer the question of why your ideal customer would prefer to buy from you rather than someone else.
5. What’s The Customer’s Location?
You must also look out to know the location of your customer.
Where are they geographically located?
Where do they buy your product from, or where are they when they buy it?
You must take into consideration your customer’s location.
6. When Do They Buy The Product/Service?
Time is also an important factor in this journey.
You must determine exactly when your ideal customer makes a purchase.
What happens in their life that makes them buy your product?
What time of the year, season, week, or month does your customer buy?
These are the ways to define a customer.
We hope you found this article useful.
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