TYPES OF CUSTOMERS IN RETAIL

How many of us as retailers know how many types of customers/ shoppers walk in to our store on day to day basis. This is a gap which many retailers' business operations. They do not educate their sales staff on types of customers which at times leads to frustration in staff and there by leading to customer dissatisfaction. Customer relationship management starts from the sales staffs and not from your customer database. In this blog let's discuss a few types of customers I have come across in my experience in retail industry :

- Brand Loyal Customers
- Discount Customers
- Impulse Buyer
- Window Shoppers
- Emotional Customers
- Exchange Customers
- Need-Based Customers

1. Brand Loyal Customers :

These customers shop for the brand and usually are brand conscious. Such customers should be updated with any new product launch for the season and all the new Hits we receive at the store during the season. If you have a sales contribution of more than 60 per cent from Brand Loyal Customers then your customers are really happy with the quality, features, style, trend, price of your product and customer service at your store. The percentage of Brand loyal customers coming to shop at your store also reflects your Brand value and it is much easier to sell your product to such type of customers but it is difficult to retain Brand Loyal Customers. Some retailers have started to provide Personal Shopping experience to these customers to give that special attention to ensure they get the best shopping experience every time they shop.


2. Discount Customers :

Though some discount customers contribute good percentage to your sales , they do not good contributors to your gross margins. When percentage of sales contribution by discount customers at your store is more then your products are over priced or your product quality and features are not up to the price point. But some retailers do clearance through Factory Outlet stores banking completely on discount customers. Brand Loyal customers can sometimes become Discount customers when they find your products are good but are pricy. But educate your staffs not to take discount customers lights because we need them to have our stocks cleared or liquidated and also they spread the word out in the market faster to show off their bargaining and money saving skills. Such customers can be intimated first on Promotions and Sales Previews


3. Impulse Buyer :

Impulse Buyers are unplanned buyers. He / She will decide to buy a product just at the very moment because the product has impressed him/her. We can see more impulse buyers at Food Carts, Road side eateries, Malls and Fast Food stalls. Impulse Buyer can be converted into a high value shopper with the sales staff's expertise. They can help you build your brand image. Window shoppers can be converted into Impulse Buyers and in turn into a Brand Loyal Customer if you impress them in their first shopping experience at your store.


4. Window Shoppers :

With shopping malls being the latest hang out spot during weekends and evenings for Indians in Metros, window shopping has also increased multiple folds which has led to huge drop in Footfall conversion at stores located in Malls. Usually movie and café goers stop by at the stores in the mall floors to have a look at your products. Window shoppers are mostly attracted into the store due to visual merchandising in your Window Displays. This group of shoppers can be really helpful to build your brand image. When we walk into a store knowing that we won't buy anything but still we get a wonderful customer service and product experience from the sales staff, it will leave a lasting impression on us and we tend to talk about the brand and the customer service to our friends and family. Window shoppers can be converted into impulse buyers with effective service by sales staffs, though they may not buy your product at the very moment, they will come back to buy your product another day if they are impressed.

5. Emotional Customers :

These customers are social and out spoken. They also sort for personal assistance and special attention when they are shopping. When they find the right sales staff who assist them with pleasure and understand their requirements, they will tend to stick not just to your brand but also to that particular store of yours where their favourite staffs work. This can be seen more in retail floor and marketing, this is one reason your clients shift out of your organisation when your sales staff quite or marketing/sales manager quits. During my retail days, we have received calls from customers enquiring if a particular staff is available at store for the day as they wish to come for shopping then.

6. Exchange Customers :

With stiff competition among retailers to capture market , customer oriented policies are sure to come up but there will always be customers who take advantage of the benefits provided. Some customers make it a practise that they exchange their garments on frequent basis even after trying the merchandise before purchasing. Such customers are seen a lot at a garment store. They even go to extents that they get the used garments back for exchange claiming to be faulty. Customer service desk managers should be well trained to handle exchanges and make sure the product is not used and the billing for the same has been done within the stipulated days allowed for exchange. Customers should be advised that we will not entertain another exchange on an exchanged garment. These type of customers will frequent the store a lot but the contribution to sales will be very low. With E-commerce gaining momentum, E-retailers should ensure they draft a customer friendly yet clear exchange policies as reverse logistics will cost them a lot. At the same time if there is a genuine reason for exchange, we should consider the exchange with no second thought

7. Need Based Customers :

Need based customers are shoppers with a requirement and plan in hand as the name suggests. They are articulate and know what exactly they need. A well trained staff can convince a customer to buy a similar product when the actual product is not available but usually such customers would leave without a purchase if they don't find the product matching their requirement. In chain stores, when one store doesn't have the product, the CSD manager enquires if they can get the same from other branches of the retailer even if it would cost a little extra for the logistics or the product is reserved on the customer's name so that he or she can collect it from the available branch. We can see more of these customers in Banking and Insurance sectors