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A customer is a person, business, organization or government that has made a purchase from you recently. Understanding and modeling customer motivations, behaviors, needs and perceptions is a basic marketing activity that is used in product, pricing, distribution and promotion strategy. The following are common types of customer and potential customer.
The first view of the customer that marketing teams develop is a target market that specifies a group of potential customers by factors such as location, demographics, behaviors, needs and preferences.A lead is an identified member of your target market who isn't a customer yet.
It is common to qualify or disqualify leads for your sales process by scoring the likelihood that they will make a purchase. For business-to-business sales this usually includes factors such as budget, authority, needs and timeline.An opportunity is a potential customer who is engaged by your sales team and is likely to make a purchase.
Subscription CustomerA customer who pays a monthly fee to you for a service. One-Time CustomersCustomers who purchase exactly once potentially due to a bad experience with your brand.Transactional CustomersCustomers who buy from you sporadically. This can occur due to comparison shopping whereby a customer buys the best perceived value each time without a strong brand preference.
Loyal CustomerA customer who makes regular purchases. The exact definition of a loyal customer depends on your industry. For durable goods, a loyal customer might be a purchase every 3 years. A fast-moving consumer goods company might view loyalty as 2 purchases a month.Convenience LoyaltyA customer who is loyal because they find you to be convenient. In other words, if something more convenient came along they might defect.
Functional LoyaltyA customer who purchases from you because you offer functionality or features they need. Such customers will typically remain loyal as long as your features match their needs. Quality LoyaltyA loyal customer who purchases from you because the quality of your products and services match their preferences. For example, a customer who is convinced that you offer the best tasting coffee.
A loyal customer who identifies with your brand.Relationship LoyaltyCustomers who buy from you because they have a business relationship with your employees such as sales people or customer service staff.A customer who buys from you because you are the cheapest or offer the best value relative to their needs. Price sensitive customers may leave if you hike prices.Lost CustomersA customer who was previously loyal who no longer purchases from you.Stuck CustomerA customer who faces switching barriers to stop using your product. Such customers may be completely dissatisfied but remain loyal until they see a way out. For example, a business that uses a software tool to semi-automate their core business processes may find it difficult to replace the tool.Satisfied CustomerA customer who is loyal because they are pleased with your end-to-end customer experience.A customer who recommends you to people.|
Type | | Definition | A person, business, organization or government that has made a purchase from you recently. | Related Concepts | |
Consumer Behavior
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