It is important to note that need-based customers can be easily drawn to other businesses. These customers buy for a specific need or occasion and are hard to upsell. In other words, they enter the store quickly, purchase what they need, and leave. Need-based customers are driven by a specific need.
This type of customer seldom purchases products at full price and shops around for the best markdowns.ĭiscount customers are resilient to upselling, are usually the least loyal segment of customers, and generally move on when better markdowns are available elsewhere. Therefore, discount customers are a key contributor to a company’s cash flow. Discount Customersĭiscount customers play an important role in turning over a company’s inventory. Keeping these customers in the loop on new product offerings goes a long way in improving a company’s profitability. Impulse customers are second to loyal customers in the generation of sales revenue. In addition, impulse customers are typically receptive to recommendations on products. Impulse customers do not have a specific shopping list in mind and purchase products spontaneously. Impulse customers are the best customers to upsell to and are the second most attractive segment (after loyal customers) to focus on. Heavy emphasis should be placed on loyal customers if a company wants to grow. Therefore, it is important to solicit their input and feedback and involve them in a company’s decision-making process. In addition, loyal customers are likely to recommend the company’s products to other people. Loyal customers, as the name implies, are loyal and value a product heavily. This type of customers generally represents no more than 20% of a company’s customer base but contributes the majority of sales revenue. Loyal customers are the most important segment to appease and should be top-of-mind for any company.