As business owners, we all do some market research to find out what type of customers want our product and what is the best way to get those customers to buy once we have their attention. What we often fail to do after we attain the customer is determine how to target or maybe even weed out particular customers.
Every customer falls into one of four categories. Our job as business owners is to find what type of customer they are so we can better serve their (and our) needs. Below you will find the four types of customers along with suggestions on how to better serve them.
- High Profit Promoters - This is your star customer! They buy a high volume of your product repeatedly AND they spread the word about what a great store you have. You want to offer programs to let this customer know how much you appreciate them. Perhaps have a referral program where if their friend mentions that your customer referred them, the one who referred gets a reward (i.e. a discount card or a free gift the next time they purchase).
- High Profit Detractors - These customers can significantly effect your profits if you lose them. They also are repeat buyers that buy significant amounts, but they are not really pleased with your store for some reason. Because of this, they will tell others they are not happy, making them attractive to your competition. You need to find out WHY they are not happy. It might be that you only need to change the fragrance of candle you are burning in your store to something more subtle or it could be more involved. You should value this customer's opinion and be open to their suggestions because you could easily convert them to the first category (high profit promoters), where you want them.
- Low Profit Promoters - This customer could easily be gleaned into a #1 customer. Their current buying patterns are not so hot, but they love your store and are telling everyone they know about it. You might make them a part of your referral program as well. This would give them an incentive to be an even better advocate for your store and helpfully hope boost their own level of purchases.
- Low Profit Detractors - This customer is the never pleased one. They buy very low amounts of merchandise and make sure everyone knows that they are NOT pleased with your store. With this customer, it is better for your bottom line to help them over to your competition because they will not be happy there either.
Once you start studying the buying patterns and mood of your customers while they are in your store, you may be surprised how many selling opportunities you are missing on your Low Profit Promoters and how many Detractors you may have working against you.
About Harvest Scents and Traders
Harvest Scents and Traders is based in the Fishers, Indiana suburb located on the northeast side of Indianapolis. Harvest Scents and Traders specializes in helping retailers become more profitable by providing uniquely designed wholesale home décor and giftware. Harvest Scents and Traders' customer base is made up of gift shops, chain stores, crafters, online retailers and general retailers.
Learn more about Harvest Scents and Traders.
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