Have you considered the different needs of your customers lately? It’s time to stop treating every customer the same… and to start reading their minds. Simply put, there are five core customer types. Let’s get to know them:
1. New Customers
New customers are the people who have just discovered your business. They are open to potential acquisition as customers, but you must sell them on the idea first.
What new customers want: New customers, like all customers, want to be treated well. While all businesses are different, a new customer must be incentivised to become involved with your business. Use either a strong value proposition or a basic incentive to bring new customers to your doorstep.
2. Active Customers
Active customers have undergone the acquisition phase. They buy from you on some semi-regular basis. If you have a brick and mortar store, you or your employees may even begin to recognize them by appearance.
What active customers want: Aside from continued good service, active customers want to be given a reason to stay with the company. Active customers may be willing to switch to your competitors if they are given the opportunity. Make no mistake, they are at an active part of your sales funnel and are open to either upgrade or lapse. Fortunately for you, every customer wants to be loyal to someone. Win their trust. Find a way to turn your active customers into loyal ones who buy from you and only you.
3. Loyal customers
Loyal customers are the customers who have been upgraded from active to evangelical. You must have done a great job with these folks, because they serve as a big chunk of your yearly revenue.
What loyal customers want: If you have loyal customers, then you already know what they want: great service and the opportunity to have their desires met by your business. Reward and nurture these customers with excellent arrangements to keep them in your camp. Incentivise them. Offer them deals. Think about interesting ways to get them involved with your company.
4. Lapsed Customers
Lapsed customers have left your camp for one reason or another. It could be that they just don’t have enough time to go to your movie theatre or that the last haircut you gave them didn’t turn out right. Whatever the reason, they aren’t actively buying your stuff.
What lapsed customers want: Lapsed customers want to be swept off their feet. They need to be wooed back before they become dormant customers and stop purchasing from your business.
5. Dormant customers
Dormant customers once bought from you, but they no longer do. They are non-factors in future forecasts because it has been so long since they purchased your product. Dormant customers may be the ones who had such a bad experience such a long time ago that they may not want to return. Or perhaps they just no longer have a need for your product because of a change in life circumstances. Whatever the case, it’s your job to win back as many as you can.
What dormant customers want: They want a reason to return to your company that surpasses something negative that may have happened a long time ago. Sometimes, you have to go to extreme lengths to get them back. But other times, if you are really lucky, you will notice there is something you can change about your sales process that will bring them back to your business without breaking your back.
Article written Aneesh Reddy, Co-Founder and CEO of Capillary Technologies. Published in Your Business Magazine, Apr/May 2014.