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.

Customer experience can influence a buying decision, but the effect depends on the buyer and context. Learn what people need, explain the offer clearly and test whether a tailored approach helps 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

Different businesses face different risks in the first year and over a five-year period. The Bureau of Labor Statistics tracks establishment survival by cohort and sector, but those tables alone do not identify why a business closed. Test demand through customer conversations and observed purchasing behavior.

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.

Early-stage teams often revise an offer after observing how buyers actually choose. A startup accelerator can help founders test assumptions about a target market, but the useful evidence comes from interviews, trials and purchasing behavior. Treat product-market fit as a hypothesis to test repeatedly rather than a milestone claimed from a single survey.

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

Acquisition and retention costs vary by product, channel and customer group. Measure both in your own business. Ask current customers what support they need, then test whether changes improve their experience and willingness to return.

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.

Six checks for understanding buyers and competing offers

Compare your customer data with wider market evidence.

Start with customer interviews and site behavior, then compare them with wider market evidence. This checklist is adapted from Sarah Schmidt's 2018 MarketResearch.com article and applies the questions to ecommerce buying journeys.

Survey responses can overrepresent people motivated to reply. Analytics show how visitors use current pages, but not why a noncustomer left. Combine these signals with interviews and market data before drawing conclusions.

External research can provide context about people who have not purchased yet; check its sample, geography and date before applying it to your store.

Compare that evidence with customer questions, support requests and order patterns to decide which demand assumptions need a small test.

Ask questions about the buying task.

Use questions that describe the decision and the constraints around it:

• Who makes the buying decision?
• Which problem does the buyer need to solve?
• When is an answer or delivery needed?
• Where does the buyer compare options?
• How does the buyer prefer to ask questions or order?
• What budget or approval limits shape the choice?

Group customers by needs and constraints.

Group buyers by the needs, budget limits and approval steps they share. Demographics may help describe a group, but use observed behavior to test whether the segments make different choices.

Look for the reason behind each choice.

Ask what outcome the buyer expects and what would make an alternative unacceptable.

A purchase may solve a practical task such as reordering approved artwork, while meeting a constraint such as a delivery date or approval rule. Ask buyers to describe the task in their own words.

When a buyer's current process causes friction, note the step, its frequency and the cost of delay. Use that evidence to prioritize a change to test, rather than assuming every reported complaint deserves a new feature.

A product team can compare lower-cost substitutes with its own offer by asking why buyers choose each option. Document trade-offs in quality, speed, service and price; do not treat one interview as representative of the whole market.

Use these findings to choose a product or messaging experiment and measure the response; they do not guarantee additional revenue.

Compare direct alternatives.

Compare the alternatives buyers name, including products sold by other vendors and options that avoid a purchase. Record what each alternative does well and where buyers still face a problem.

• When comparing alternatives, record the following:
• Which vendors or substitutes do buyers mention?
• What features, terms and support does each offer?
• Which trade-offs matter to the target buyer?
• What evidence supports each competitor's claims?
• What can your offer explain or improve?

Include indirect ways to solve the same problem.

Think beyond vendors with the same catalog. Indirect alternatives can meet the same task in another way: a business might print in-house instead of buying outsourced work, for example. Test which trade-offs matter to your buyers before changing your offer or messaging.

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.

Even a preferred brand can lose trust after a poor experience. A failed delivery, unclear return terms or unanswered support request can change a buyer's next choice. Assess complaint volume, repeat purchase, refund requests and service recovery using your own customer records before stating how often buyers leave.

With this in mind, group buyers by the task and stage they are in. Give each group relevant information and support, then test whether the approach improves comprehension, satisfaction or repeat buying.

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 key product information easy to find. Use clear navigation, relevant search terms, and visible price, delivery and return information. If you offer discounts, state the terms and test whether visitors understand the offer.

2. Discount customer 

Discount customers consider the value in the product but are especially attentive to price and promotions. Some compare the terms of an offer before buying. Explain eligibility, duration and the normal price clearly. When a promotion ends, ask whether product quality, service and repeat-use value justify a further purchase. Good support can matter alongside price, but a discount does not guarantee a repeat customer.

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 compare specifications, reviews, prices and support terms before deciding. Give them accurate comparisons and details they can check; measure whether that information answers their questions rather than assuming they will return.

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.

Show potential buyers where they can ask for help. State available support channels and response hours so people know when to expect an answer.

6. Cautious consumers

Some buyers are unfamiliar with online checkout or want more evidence before entering payment details. Cautious customers may look for contact information, return terms, secure payment options and independent reviews. Make those facts easy to verify and offer help if a step is unclear.

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 what active customers are trying to accomplish. Ask where product use is difficult, offer relevant help and check whether the change resolves the issue. Measure continued use and renewal rather than assuming support will keep everyone for the long term.

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.

A buyer who left may still have a need your product can serve. Address the reason they left before inviting them back, then ask whether the change resolves their concern. A return is possible, not guaranteed.

How to get lapsed customer comeback?

Before contacting these customers, review the reason they left and address the specific problem where possible. There may be another opportunity to serve them, but ask whether they want an update and honor a refusal. Explain any revised offer without implying that every concern is solved.

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?

If a loyal customer agrees, invite them to contribute a case study or testimonial about their experience. Obtain consent for names, quotations and results before publishing, and do not assume participation changes loyalty.

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?

Long-term customers may continue to buy or subscribe, but their needs can change. Keep delivering value and invite optional community participation; use feedback and repeat-purchase data rather than assuming they will refer others.

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, but the approach depends on the buyer's needs and stage. Use the 14 customer types and approaches in this guide as working categories, then validate them against your customers' behavior and feedback.

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