Online Customers: Customers play a significant role in any business. To understand customer behavior and to allocate resources to different customers to generate profit, it is essential to be able to identify and segment different types of customers. However, to understand the different types of customers, businesses can be better equipped to develop successful strategies.
In this article, you will learn about the different customers and how to attract customers to your online store
Types of Customers on Online Sales Platform
In the retail industry, customers can be classified into:
- Loyal customers: They make up a minority of the customer base but generate a large portion of sales.
- Impulse customers: They do not have a specific product in mind, they purchase goods when it seems good at the time.
- Discount customers: These customers shop frequently but base buying decisions primarily on markdowns.
- Need-based customers: They are customers with the intention of buying a specific product.
- Wandering customers: They are customers that are not sure of what they want to buy.
The most vital set of people to appease are loyal customers, and this should be the top-of-mind for any company. This set of customers generally represent not above 20% of a company’s customer base, but however contribute the majority of sales revenue. Just as the name implies, loyal customers are loyal as they value a product heavily.
Moreover, loyal customers are likely to recommend the product of the company to other people. This is why it is important to value their input and feedback and also add it to the company’s decision-making process.
After the loyal customer, impulse customers are the next in line to value, they are the second most attractive segment. This kind of customers do not have a specific shopping list in mind, they just purchase products spontaneously. Impulse customers are receptive to recommendations on products.
In the generation of sales revenue, they are considered the second to loyal customers. Retaining these customers in the loop on new product offerings goes a long way in improving company profitability.
These sets of customers are a key contributor to a company’s cash flow. They play an important role in turning over a company’s inventory, they seldom purchase products at full price and shops around for the best markdowns.
Discount customers are resilient to upselling and are usually the least loyal segment of customers. They generally move on when better markdowns are available elsewhere.
Need-based customers are customers with a specific need, they enter the store quickly, purchase what they need, and leave. These customers are hard to upsell, they buy for a specific need or occasion. Need-based customers are easily drawn to other businesses.
Therefore, it is important to initiate positive personal interaction with them in order to retain them. With proper positive personal interactions, converting need-based customers to loyal customers is attainable.
Wandering customers makes up the smallest percentage of sales revenue, but draw the largest amount of traffic to the company. They have no specific needs in mind and are attracted by the location of the business. They enjoy the social interaction of the shopping experience.
Ways to Attract Customers to Your Online Store
Hold a Sale
- Holding a sale helps you get attention and win new customers over
- Introduce limits to suggest exclusivity
Run a Competition
- Run a competition that is relevant and useful to your brand
- Also, consider using a voting mechanism, where participants win by getting their friends to vote
Give Free Samples
- If your product is limited by cost, give free samples to a random subset of lucky subscribers
- Also, reach out to influential bloggers to review your free samples
- Try to earn your customers’ loyalty by introducing them to other quality brands they might like
Participate in Social Media
- Go to where your target audience is
- Create stories worth sharing with others
CEO mcfaidesigns & Director nTElls.COM
Developer & Digital Marketer in Lagos, NG. Waiting to meet you!