What is the best way to identify customer types for your business?
When it comes to your audience, you can divide them into two key groups: prospective customers and existing customers.
Prospective customers are individuals who may be interested in your product or service but have not yet made a purchase. You can further segment these prospects based on where they are in your sales funnel, from initial awareness to seriously considering a purchase. The messaging you use should be tailored to where they are in the buyer's journey.
For existing customers, the goal is to continue providing value and maintaining loyalty. These customers have already bought from you, so the focus is on nurturing the relationship, addressing their needs post-purchase, and incentivizing repeat purchases. You want to make sure their experience remains positive so they continue to think of your brand favorably.
In both cases, understanding the underlying motivation behind the purchase can help you craft messaging that resonates. Whether it's addressing a problem they face or appealing to specific desires, knowing why they buy can lead to more impactful communication that propels them down the sales funnel or keeps them coming back.
The key is to segment and customize your outreach based on where prospects and customers are in their journey with your business. This targeted approach is essential for marketing success. So what are the different customer types? Let's explore this topic.
Different Customer Types
Related: The 5 Stages of the Customer Journey
Potential Customers
Potential customers are individuals who have shown interest in your product or service but haven’t made a buying decision yet.
A potential customer is a lead that needs nurturing and warming up before making a purchase decision. They already showed interest in your business by filling out a contact form or signing up for a newsletter. That show of interest is what separates them from other website visitors. You can use that interest to convert them into a new customer.
Note that potential customers can exist anywhere in the buyer’s journey.
How to Approach Potential Customers
Make a great first impression. To turn website visitors into buyers, focus on creating the right user experience through beautiful, intuitive design, mixed with compelling content. Eliminate distractions and confusion by removing clutter like disruptive pop-ups and complex menus.
Demonstrate value. For potential customers who already show interest, make your offerings irresistible by focusing valuable, educational content that spotlights benefits without aggressive sales messaging. Provide content and offers that genuinely assist prospects in their buyer's journey, even if they ultimately do not choose you. An informative, consultative approach can convert leads by demonstrating your expertise and commitment to their success first.
Offer to help. Make it clear that your team is a valuable resource that is available to answer any questions a potential customer may have.
New Customers
As the name suggests, new customers are those who have recently made their first purchase with your business. These individuals are new to using your product or service.
New customers may have questions or need guidance to fully understand your offering. However, they may not always know what to ask. These early interactions are vital for making a positive first impression. New customers are forming opinions that will influence their long-term perceptions of your brand. Seamless, thoughtful onboarding initiatives must be in place to nurture success during this critical moment.
From in-app messages and tutorials to email check-ins and FAQs, make sure resources are readily available to answer new customers' questions. A customer-first mindset now can engender loyalty and advocacy down the road.
How to Approach New Customers
Welcome them properly. A well-crafted welcome email(s) can help new customers feel appreciated, provide important product information, and ensure they know where to go for help.
Set them up for success. When bringing on new customers, it is important to set them up for success by making your product or service easy to learn and use. Providing sufficient self-service onboarding resources will help facilitate new customers' understanding and enable them to effectively utilize your offerings. Consider developing walkthroughs, blog posts, video tutorials, or interactive demos that guide new users through the critical workflows and features step-by-step.
Be Present. Let potential customers know they can ask for help or advice anytime. Even if the customer doesn’t need it now, they will appreciate your accessibility.
Impulse Customers
Impulse customers make unplanned, snap purchases when something appeals to them. They act on immediate desire rather than premeditated decision making.
While impulse buyers provide exciting, quick conversions, effort is required to ensure their satisfaction and continued business. Providing educational resources, troubleshooting guides, and stellar customer service enables you to turn these customers into loyal repeat purchasers. Turn their exciting initial response into lasting brand commitment.
How to Approach Impulsive Customers
Clear the way to check out. If your business requires manual purchase on your site an impulse buyer might click out and go to another site that allows a quick sale. The fewer clicks and information required to make a purchase, the better.
Offer timely cross-sells. Once you know what an impulse shopper is eager to buy, offer more to them in email campaigns to help you capitalize on their urge to buy. Consider adding related product recommendations to various touch points, including the checkout screen, order confirmation, shipping notice, and follow-up emails.
Quick customer support. If you get a question from impulse buyers, make the answer short.
Discount Customers
Discount driven customers are primarily motivated to make purchases due to sale discounts and price reductions. They buy during limited-time deals and discounts but may not engage at regular price points.
Because these buyers are focused on the discount rather than inherent product value, communication should be tailored to maintain satisfaction post-purchase. Highlighting the ongoing savings and benefits secured versus focusing solely on product features can affirm their purchase decision.
Additionally, discount driven customers require continued value messaging even after the sale in order to retain them. Ongoing relevant offers and incentives can create continued engagement outside of temporary promotions.
How to Approach Discount Customers
Effective onboarding. You might be noticing that Onboarding is a common theme in the customer process. But remember, comprehensive support allows them to get the most out of your offering.
Continued product support. Since these consumers may not have been motivated by product features, it’s important to keep in contact with them after onboarding to ensure satisfaction.
Loyalty programs. Rewarding a continued relationship with your business using more discounts and loyalty programs is a good customer service tip to help retain these customers long-term for future purchases.
Related: Why So Many Businesses Fail Year One
Loyal Customers
Loyal customers have cultivated long-term, trusted relationships with your brand. They are the cornerstone of your thriving business. Given their deep connection over time, loyal customers expect and deserve exceptional service during every interaction. While their history suggests high retention, loyalty cannot be taken for granted.
To maintain loyalty, continue nurturing these customers with priority support, special perks, and prompt issue resolution. Seek feedback to improve their ongoing experience. Surprise and delight loyal devotees through unique promotional offers and tokens of appreciation.
You should leverage their experience and learn what makes your loyal customers satisfied with your business. When you have the chance, ask them which aspect of your product or business they like the most. Take note and try to replicate that experience so that other loyal customers also become your brand ambassadors.
How to Approach Loyal Customers
Personalized communication. Personalized emails for birthdays, customer anniversaries, or other significant dates can make these individuals feel valued. They are giving you continued, loyal business and should be treated with the same loyalty by you.
Highlight their success. Featuring your best customers in a spotlight article or case study can help to increase their exposure, while providing you with a valuable sales asset. You may also consider offering an incentive for referrals and testimonials.
Exclusive rewards. Offer exclusive discounts, early access to new products, loyalty programs, and other special offers to reward customer loyalty.
Angry Customers
Angry customers are bad for business, obviously. Unfortunately, customer anger can at times be inevitable. However, this presents you an opportunity to rebuild trust through empathetic service recovery.
When dealing with upset customers, remain calm and actively listen to understand their perspective. Express genuine empathy for their situation rather than being defensive. Don't minimize the problem your customer is having. Apologize for the failure and offer a fair solution or compensation. Being dismissive or argumentative will only intensify negative feelings.
With supportive, transparent communication and accountability, angry customers can still give their business to you. When dealing with angry customers, make sure you clearly state what they need to get out of the situation. You have a limited window of opportunity as they will only get angrier.
How to Approach Angry Customers
Practice empathy. One of the most effective ways to handle an angry customer is to simply hear them out. Try to see things from their point of view. Wait to offer a solution until you fully understand the issue, or the customer may end up feeling dismissed.
Prepare a plan. A confident, positive approach can go a long way toward defusing a difficult situation. Make sure any employees are well-trained, so they aren’t caught off guard by angry customers.
Take appropriate action. You wouldn't give a future discount to a customer who never even received their order in the first place. Make sure the resolution fits what the situation needs.
Final Thoughts
Every customer is unique in their own way. The customer journey has different levels to it with each level being equally important. There’s no single right way to address a customer’s needs, each requires a different approach.
A customer's experience with your site might just be the deciding factor when it comes to purchasing. Or, they could be an impulse buyer who was going to buy anyways. Remember, as important as the lead up to a sale is, post sale is just as, if not more important. Getting a sale is great, but building a healthy, long lasting relationship with your customer should be your ultimate goal.
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