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Types of Consumers: Who Buys and When

June 25, 2020 • DJ Team

Five Types of Consumers in Marketing

Marketing strategies of the past have largely relied on a one-size-fits-all approach where the most important aspect was getting the message to as many people as possible, but the modern marketplace calls for a more targeted approach. Reaching the right customer at the right time is far more effective than taking a mass approach designed to simply maximize exposure and hope something sticks. Research shows that there are 5 types of consumers in marketing and that they all require slightly different attraction and retention techniques. Here's what you need to know about consumer-based marketing.

What Are Different Types of Consumers in Marketing?

Loyal Customers

Impulse Shoppers

Bargain Hunters

Wandering Consumers

Need-Based Customers

Consumers are generally typecast according to their behavior, and more and more, that behavior occurs online. Following are the most common five types of consumers in marketing.

Loyal customers make up the bedrock of any business. As the name implies, loyal customers are those who have made a commitment to your product or service. Even though they may comprise the smallest percentage of your overall consumer base, your loyal customers are also the most likely to generate the majority of your income. As an added bonus, they're far more likely to recommend your company to others.

However, it's important not to make the mistake of taking loyal customers for granted — they're as likely as anyone else to move on to greener pastures if your business isn't meeting their needs and preferences. It's essential to keep this customer base involved, engaged, and feeling as if they're valued by your company. Consider adding reward programs and interactive social media to keep them coming back.

Impulse shoppers are those simply browsing products and services with no specific purchasing goal in place. This consumer segment generates significant revenue for most retailers. This type of consumer is usually receptive to upselling and has the potential to become a loyal customer if products and services meet or exceed their expectations and desires.

Bargain hunters are seeking the best deal, period, and most likely won't be swayed by upselling techniques — in fact, this may cause them to move on. This type of customer has very little potential to become a loyal customer unless it's part of your business strategy to offer the lowest possible price points at all times. This customer also rarely, if ever, makes purchases on impulse. Advertising sales is the best way to appeal to those in this customer group.

Wandering customers are somewhat related to impulse shoppers, but they're much less likely to make purchases. This type of customer is more prevalent in brick-and-mortar locations, but they do stumble into online retail venues on occasion. It's sometimes possible to make a sale to those just wandering through provided you can stimulate their interest, but keep in mind that many of them are simply attracted to the social interaction of shopping and have no intention of making a purchase.

As the name implies, need-based consumers are driven by the need for a specific product or service. Although these customers generally make purchases decisively and quickly once they find what they're seeking, they're easily lured away by competing businesses. However, they're frequently converted into loyal customers. They often have practical questions or concerns that can be addressed with a proactive social media presence.

As you can see from these consumer buying behavior examples, different marketing approaches work better for different consumer groups . Today's businesses have more marketing options than any of their historical counterparts, but many are unsure of the best way to use these resources. You probably already know that it's important to understand the types of consumer markets as well as the types of online consumer behavior in order to craft an effective and profitable marketing strategy, but you may be struggling with how to put this into practice — and that's a perfectly normal response to the plethora of information and consumer behavior examples available to those trying to devise a customized marketing strategy.

Taking the Guesswork Out of Modern Marketing

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Getting content in front of your target audience throughout the buying journey is easier said than done. DemandJump's Consumer Insights platform informs every piece of your content marketing strategy. Where traditional content tools simply provide data, the DemandJump platform recommends specific content to write, providing rich content outlines for each recommendation, allowing marketers to create more valuable content while automating hours of keyword and SEO research - all the marketer has to do is input a topic.

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• Customer Relationship Management

Different Types of Customers

Customers play the most significant part in business. In fact the customer is the actual boss in a deal and is responsible for the actually profit for the organization.

Customer is the one who uses the products and services and judges the quality of those products and services. Hence it’s important for an organization to retain customers or make new customers and flourish business .

To manage customers, organizations should follow some sort of approaches like segmentation or division of customers into groups because each customer has to be considered valuable and profitable.

Customers can be of following types:

These customers revisit the organization over times hence it is crucial to interact and keep in touch with them on a regular basis and invest much time and effort with them. Loyal customers want individual attention and that demands polite and respectful responses from supplier.

Loyal customers are the ones who will act as advocate for your organization.

More is the discount the more they tend towards buying . These customers are mostly related to small industries or the industries that focus on low or marginal investments on products.

Focus on these types of customers is also important as they also promote distinguished part of profit into business.

Handling these customers is a challenge as they are not particularly looking for a product and want the supplier to display all the useful products they have in their tally in front of them so that they can buy what they like from that display.

If impulsive customers are treated accordingly then there is high probability that these customers could be a responsible for high percentage of selling.

These are frequent customers but do not become a part of buying most of the times so it is difficult to satisfy them.

These customers should be handled positively by showing them ways and reasons to switch to other similar products and brands and initiating them to buy these.

These customers could possibly be lost if not tackled efficiently with positive interaction.

These customers are normally new in industry and most of the times visit suppliers only for confirming their needs on products.

They investigate features of most prominent products in the market but do not buy any of those or show least interest in buying.

To grab such customers they should be properly informed about the various positive features of the products so that they develop a sense of interest.

An organization should always focus on loyal customers and should expand or multiply the product range to leverage impulsive customers.

For other types of customers strategies should be renovated and enhanced for turning out these customers to satisfy their needs and modify these types of customers to let them fall under loyal and impulsive category.

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Authorship/Referencing - About the Author(s)

The article is Written and Reviewed by Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

• Origin of CRM
• Features of CRM
• Importance of CRM
• CRM and Marketing
• Misunderstandings about CRM
• Benefits and Challenges of CRM Software
• CRM (Customer Relationship Management) Software and Its Importance
• Types of Customers
• Customer Profiling
• Regression Scoring
• Quality of Relatiosnhip with Customers
• Need of Relatiosnhip with Customers
• Customer Relationship with Supplier
• Cost Sensitivity of Customers
• Bargaining Power of Customers
• Customer Relationship Measurement
• Market Research and CRM
• Market Research Process
• Desk Research
• Field Research
• Data Analysis and Compilation
• Report Preparation
• Action Plan in Report Preparation
• Strategic CRM
• Operational CRM
• Analytical CRM
• Collaborative CRM
• Customer’s Response - Introduction
• Measuring Customer Response
• Medium of Customer Responses
• Qualities of a Good Response
• Response in Consumer Sector
• Response in Core Sector
• Customer Acquisition - Introduction
• Customer Life Cycle
• Customer Acquisition Cost
• Measuring Acquisition Equity
• Customer Loyalty - Introduction
• Customer Loyalty & Satisfaction
• Drivers of Customer Loyalty
• Customer Loyalty Breakers
• Tracking Customer Loyalty
• Increasing Customer Loyalty
• Customer Satisfaction
• Why Dissatisfaction in Customers
• Measuring Customer Satisfaction
• Methods of Measuring Satisfaction
• Factors affecting Customer Satisfaction
• Customer Retention - Introduction
• Customer Retention Strategy
• Determinants of Customer Retention
• Methods/Tools for Customer Retention
• Myths about Customer Retention
• Benefits of Cloud CRM for Small Businesses
• Practical Tips for Effectively Implementing Salesforce

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9 Types of Customers and How to Approach Them

Customers are the lifeblood of any business. Many businesses don’t pay attention to their needs despite their importance. Before you heave a sigh of relief and think your business meets the customer’s needs, answer this question.

What is your customer strategy? If you are like most businesses, you will mention strategies for your growing customer base without identifying solutions for different customer types. Now you can see why your customers are leaving unsatisfied and doing business with your competitors.

No customer is the same. Different customers have unique characteristics. Your job is to group them into categories, understand their needs, and the best approach to deal with them.

Let’s check the different customer segments and the best way to approach them to ensure they become repeat and loyal buyers.

Main Types of Customers

You will attract different types of customers in your sales funnel who are interested in what you sell. Your ability to identify them and know how best to manage them will determine if they will become loyal or pick a competitor.

Let's check out some of the most common types of customers and how best to manage them.

1. New Customers

Consider new customers as babies who recently came in contact with your product. They are needy customers that require attention, love, and patience to come to maturity and independence.

All customers begin at this stage. New customers willing to try your product for the first time will always be a part of your customer base. They form their first impression once they come in contact with your product and business, which can be positive or negative.

After their first purchase, they are receptive to any information you give them in this stage of the customer relationship.

First-time buyers may be overbearing. You must keep your cool and give them what they need. If you engage them politely, they will not become dissatisfied customers.

You can easily influence their purchase decisions, build loyalty, and strengthen your relationship to guarantee more sales.

Don't make the mistake of not following up after their first purchase. If you keep in touch with them, you put yourself in their consciousness. You can ask them for feedback and give them suggestions on how to better benefit from the product.

As long as you do your part in the relationship, they will give your product high ratings and good reviews that increase your customer base.

How to Approach New Customers

• Welcome the Newbies Warmly: People can sense when they are welcome. Customer satisfaction goes beyond the product’s quality. Providing good customer service is essential. Send new customers personalized welcome emails to make them feel welcome. These emails should contain vital product information to guarantee a smooth customer experience.
• Offer a Simple and Clear Onboarding Process: Play the role of a babysitter by guiding them on how to use your product. You can expose them to resource kits like walk-throughs, blog posts, demos, and tutorials. Once they understand how the product works, they will get committed to using it.
• Keep Contact Channels Open: Since new customers are likely to have questions or face challenges, get your customer service teams ready to swoop in when needed. Ensure all the contact options are easily accessible and readily available to make every customer happy.
• Strengthen Your Relationship: The quality of your investment in the relationship will influence customer loyalty. Customers tend to switch to competitors once they feel they are not appreciated and you do not offer them a positive personalized experience. If you invest in your relationship, you will have a lot of happy customers.

2. Potential Customers

Every acquired lead in your sales funnel is a potential customer who may translate into a loyal customer. Potential customers are called prospects or lookers. They gather information and look for the best deal before making any buying decision.

Don't joke with your potential customer because they may be your connection to a new community of customers. Since they have shown some interest in your product, do all you can to convert them.

Potential customers are like children that are yet to be born. Your healthy or toxic lifestyle will determine how they will end up. A toxic lifestyle involves neglecting to nurture your leads to maturity by avoiding them.

On the flip side, a healthy lifestyle involves giving them the necessary attention and causing them to make a buying decision by building on their interest. What becomes of your potential customers depends on your approach in their awareness stage.

Image of a Customer Journey Map Showing the Awareness Stage

How to Convert Potential Customers

• First Impression Always Matters: People tend to remember their first experience with you over others. Ensure the first contact visitors have with your product is compelling enough to attract attention. Invest in creating the perfect customer experience for your website visitors. Begin by eliminating things that can distract them like pop-up ads.
• Display Your Value: What makes you different from your competitors? Why should they buy from you and not from others? You must answer these questions by demonstrating your values and making your product irresistible. You can use social proof like white papers, testimonials, and case studies to show them why they should choose you.
• Nurture Responding Leads: Once you identify leads responding more than others, it's wise to give them attention and begin the nurturing process. You can share more valuable information and well-crafted resource files to influence their decision.
• Make Yourself Easily Accessible: Assure your potential customer you are always there for them anytime they need help. If they have any questions, they can contact you with the confidence that they will get their answers. With this consciousness, they will be more comfortable doing business with you.

3. Loyal Customers

Loyalty is a virtue in business and is shaped by positive customer experience. If you want to convert your purchasers to active brand ambassadors, advocate for customer loyalty.

The more loyal customers you have, the higher your customer lifetime value ( CLV ). It’s cheaper and easier to retain customers than it is to acquire new ones .

Every business desires to have loyal customers because they always come back for more. Their love for your product and company drives them to remain loyal and recommend your products to people in their sphere of influence.

While dealing with loyal customers, find out what keeps them glued to you and ensure you replicate the same for other customers to get similar results.

Loyal customers always make repeat purchases and are willing to try new products when they come out. Due to their loyal nature, they expect premium services from your company, particularly from your support team.

Do all you can to satisfy their needs and keep them loyal because of the advantage they give to your business.

How to Retain Loyal Customers

• Celebrate their Success: Your loyal purchasers are deeply concerned about your products and would love for other customers to get involved as they are. Take advantage of their interest by uploading their testimonials in a blog article or as a case study. This exposure allows other customers to see how great your product is.
• Loyalty Programs: Customers love it when businesses give back. A loyalty program will go a long way in retaining them. You can offer them special discounts and rewards for their consistent purchases. Additionally, a loyalty program is a good source of behavioral and purchase data.
• Discover What Makes them Loyal: You must have something unique about your business that keeps your customers from leaving. Discover this feature and use it to get more of your customers loyal to your products.
• Remain Consistent: Once you have discovered what makes your loyal customers tick, ensure you stick to it. Your discovery may be as little as the packaging, the smell of your products, customer support, or the effectiveness of your product. Whatever it may be, ensure you remain consistent in delivering the best.

4. Impulse Customers

Impulsive customers are very emotional when it comes to making purchase decisions. As long as they like the product, they do not require much convincing before they pay.

Researching product features is not their strong suit. In most cases, their purchases are unplanned. They act based on how heightened their emotions are when they come in contact with your product.

You don't need to put up a show or get them excited with too much value proposition. These customers help you to conserve your resources and efforts. Instead, focus more efforts on convincing potential customers who are unsure about what decisions to make.

Don't make the purchase process complicated. The easier the buying process, the faster they will jump right in and pay for the product. Cultivating loyalty among impulse buyers is easy as they don't hesitate before going for what they like.

An impulse customer is an advantage to your business. They are the best customers to have when you want to upsell. With them in your customer base, you will always make sales.

How to Approach an Impulsive Customer?

• Simplicity is Key: Impulsive buyers love simple personalized experiences while shopping. Once the steps in making a purchase get complicated, they lose interest. Many pop-up ads on your landing page can distract them and turn their attention to something else. Ensure you eliminate every distraction and make the purchase process simple enough for a child in grade six.
• Offer Timely Upsells and Cross-sells: By understanding this type of customer, you can take advantage of their shopping style by upselling and cross-selling offers of products they like. You can make recommendations of products via channels like shipping notices, checkout screens, order confirmation, and follow-up emails.
• Offer Seamless Self-services: Impulse purchases attract situations that require customer support because of mishaps like returning or exchanging one product for another. Impulse buyers are a vital part of your customer base. A fully functioning self-service process will keep them happy and returning, irrespective of any issue.
• Use Incentives: You can leave a trail of incentives on pages where you want them to make quick purchases so you can sell some products that are not moving fast. These incentives serve as a hook for them to buy the product without reading the fine print.

5. Discount Customers

Discount customers are known as bargain hunters because they are always in search of the best deals. Unlike impulse customers, they are not quick to make purchase decisions.

These customers prefer to spend time in search of valuable information on the most affordable model of your product or come back when you offer discounts.

Discount customers are not usually loyal to a particular brand or product because they only look out for themselves. They can buy from you today if your product is the cheapest and go elsewhere once they get a better deal.

Such customers are hard to satisfy and are never willing to pay the full price when they make a purchase. You can attract them by offering the best deal in the market they can’t refuse.

How to Handle Discount Customers

• Make the Deal Crystal Clear: Give them what they want, information about your product, and the deal you are offering. A discount customer loves to research various products and compare costs. Don't make yours a challenge. Show your cards and explain in detail your discount policy and how they can enjoy it.
• Deliver Superb Service: Discount customers don't forgive easily if your services are not excellent. Ensure all your promo codes and productions function optimally. Keep your customer support team on standby in case they experience any issues during the purchase process.
• Provide Added Value: You must be proactive when dealing with discount customers because they tend to be impatient while shopping. If you don’t have what they want, they move on. You can renew or extend discounted offers before they expire. Be willing to go the extra mile to satisfy bargain hunters since this customer type has unique needs.

6. Need-Based Customers

Need-based customers focus on the reason they visit your website. Their motivation for accessing your product is to see if it meets their needs. If you have what they need, they purchase it immediately and leave to do other things.

These customers are tough to upsell because all they want is a product that can satisfy their present needs. Any product that does not fall into this category is ignored.

Cultivating loyalty is a difficult task because these customers are motivated by their needs. They are quick to move to other businesses that can satisfy their needs if you can't.

In most cases, need-based customers are visitors who saw certain products, and when they needed them, they came back to purchase them. These customers buy without much convincing when the need arises for that product.

How to Handle Need-based Customers

• Establish Strong Connections: Trust is a vital aspect of business that benefits business owners and purchasers. Work on establishing a concrete connection with your customers. This connection will result in a positive impression of your business and keep your customers happy and willing to visit your store for their needs.
• Offer Excellent Customer Service: With a well-trained customer support team, need-based customers will view your business as a place of refuge. Your customer service team should offer fast answers to questions and lasting solutions. If you meet their needs, they will always return when they have new things to buy.
• Offer Step-by-Step Guide: Some need-based customers may not be knowledgeable about other products that meet their needs. Offer advice on what they need to make the purchase process seamless. Consider optimizing your website for mobile, allow guest checkout, and make various payment options available.

7. Wandering Customers

For most businesses, wandering customers make up their biggest traffic source but contribute the smallest percentage of sales revenue.

Businesses with many wandering customers and few loyal buyers are in trouble because their revenue will be small.

This customer segment has no desire to buy. You find them doing a lot of window shopping without making any purchases. Factors like boredom, brand image, or the location of your business are what attract them to your business.

When they eventually make a purchase, they may return the product or exchange it for another if they are unsatisfied.

How to Relate to Wondering Customer

• Give Them Limited Attention: Once you identify a wandering customer, do not waste your time and resources. You can convert these vital resources into converting other customers who have shown interest in your products and services and are willing to purchase.
• Gain Insight About Your Product: The attention they give your business has its positive side because you can gain insight about some flaws in your product. Wandering customers know about various products since they are mostly surfing different websites and online stores. Take advantage of what they know to make your product better.
• Stir Up Interest: If you play your cards right by showing them the strength of your product, you can easily convert them into loyal customers. Expose them to certain materials that contain how your products can meet some of their needs and give them the instant gratification they desire.

8. Knowledgeable Customers

Knowledgeable customers are also called insistent customers. They seem to have in-depth knowledge about the product and are not shy to display their knowledge.

Researching product functionality is a hobby for them. They love to see the various aspects of the product and how best to optimize it to their advantage.

Knowledgeable customers are not impulsive. They love to sniff around before making a purchase decision. You can bet on them to always make informed decisions because they know about your product's flaws and strengths.

Dealing with this type of customer is interesting and overwhelming at times. They are full of technical questions that they mostly have answers to but they test your knowledge.

If your customer support is not excellent, they can become angry customers and go elsewhere to get what they want. Invest in the best helpdesk software like LiveAgent and Freshdesk to provide premium customer service for your customers.

How to Deal with Knowledgeable Customer

• Massage Their Ego: Know-it-all customers love recognition for their knowledge. Give them attention and mention how impressed you are with what they know. This gesture gives them the right impression about your company and can convince them to become loyal customers.
• Invest in Your Customer Support: Train your customer support team on the best ways of relating with knowledgeable customers. They must be polite and never lose their cool if the customer seems to be asking too many questions. Their response can produce positive or negative results and influence customers' purchase decisions.
• Offer Superior Knowledge: Highly informed customer types require something more than what they already know to influence their purchase decision. If you can offer them easy access to a knowledge base and other vital information, they will help to solve their product-related problem. This factor makes you stand out from your competitors.

9. Angry Customers

You can’t run a business successfully without dealing with angry customers. This customer type is always very emotional and easily gets triggered if things are not going their way. Personal issues or dissatisfaction with the purchased product can cause anger.

Unhappy customers could be a problem at times, but they serve as a rich source of feedback. An angry customer will gladly spell out the flaws and inconsistencies in your products and services.

With the right insights from their opinions and complaints, you can make necessary adjustments to your product and service delivery. In most situations, their reactions are overly exaggerated.

If you can manage your angry customers effectively, you can turn them into loyal customers that freely perform the role of brand ambassadors.

How to Handle Angry Customers

• Have A Contingency Plan: While conducting your business, you will always meet unhappy customers. Train your customer support team on the best ways to handle angry customers.
• Listen to Their Complaints: Look beyond the tone of their voice. Angry customers mostly have a point while expressing what's displeasing about your product or service. Don't dismiss their points. Hear them out, you will be surprised that by just listening, their anger leaves. Don't be eager to offer solutions until you understand their complaints.
• Take Appropriate Action: You can redeem yourself by offering appropriate remedies to the identified problems. Ensure you use their complaints as a guide to get insights on what solutions fit the problem. You can offer a refund, a replacement, or even a letter of apology.

Delight Every Type of Customer With a Customer-centric Solution

The best and most effective solutions to customer-related problems are simple. Customers are not robots. They have feelings and want to establish concrete relationships rather than official conversations.

By understanding the various customer types, you can relate with them personally and convert them to loyal customers.

You can use data like basic contact information, purchase data, customer behaviors, attitudes, and preferences to offer premium services to your customers. While communicating with your customers, ensure you use basic terms to be more comfortable and expressive.

Here are the best software tools that help you provide customer-centric solutions for different customer segments.

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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Exploring digital loyalty and customer happiness

The Five Customers You’ll Meet in Your Small Business (and how to turn them Loyal!)

33% of customers  will choose your competitors over you — if they experience even one instance of bad service.

What makes one business’ service better than the other? How can you create that impression? And what can make the service you render to your target audience irrelevant?

The clear answer is that every business handles different types of customers, each with different needs. And treating everybody the same won’t work.

If you don’t strategically segment your customers and handle them differently there’ll be an issue. And if the problem isn’t fixed quickly even your loyal customers could be lost, as well as, a huge chunk of your profits.

Every one of the customer types that you cater to differs tremendously from the other and this in so many ways.

This is why handling your customers the same way is a recipe for disaster.

It’s a given that customers play a huge role in any company.

But understanding the behavior of your customers will help your business to effectively allocate its resources to the various types of customers to boost your profits.

Also, as you better understand and segment your customers you’ll be able to develop effective business strategies.

So in this article, we are going to have a look at the different types of customers and how to relate with them.

Before that though let’s see an overview of what we’ll be covering:

Click to Jump

What are the 5 Types of Consumers?

There are 5 types of customers that you must identify to create effective strategies that can produce your desired results.

Let’s have a look at them:

• Regular Customers or  Loyal Customers : These are responsible for 80% or more of your sales  even though they may just represent 20% of your customers.
• Impulse Shoppers : These types of shoppers come into your store randomly and purchase on a whim. They most times don’t have an opinion about your brand but simply saw a product you offer that they like.
• Bargain Hunters/Discount Divers : This segment of customers are frequent patronizers of your business but their decisions are based primarily on your discounts. And they also love to get the cheapest price on everything.
• Wandering Consumers/Window Shoppers/Researchers : These types of customers do not have a purchase goal for visiting your store. They simply want a feel of the experience that you offer. And most times if they’re impressed they’ll return for a purchase.
• Needs-Based Customers : These visit your business because they have a particular need that requires a solution and your product is the answer. Their intention is specific.

1. Regular Customers/Loyal Customers

Your regular or loyal customers are the most valuable customer segment you have.

This is because they contribute the largest percentage of your profits ( 80% ) as we just saw. And spend more (67%)  than new customers.

This means you must give them maximum attention because they hold your business together.

To do so you should consistently interact and communicate with this segment.

Bombas shares their brand story and values with customers so they can create a bond with them.

Bombas shares the brand’s corporate value

There are so many ways to do so such as social media, phone calls, emails, user-generated content, live chat, etc.

Your loyal customers should and can influence a large part of your business decisions and perception. So you must communicate and listen to them to know what strategies to take.

Loyal customers, for example, contribute massively to the word-of-mouth marketing process of your business. Both when solicited and unsolicited.

They spread the word about your brand to their circles the more you engage them and show them that they’re valuable to your company.

Most businesses even go the extra mile by creating a loyalty program ( more of this in a bit ) to reward loyal customers for their consistent patronization of the brand. And as a show of the value, they have for the segment.

2. Impulse Shoppers

Impulse shoppers are an amazing customer segment because they hold a lot of knowledge and insights about your target audience. These types of customers are also the ones you should display your product and offerings to.

They represent customers who are intrigued and pulled in to buy your products but they haven’t made a decision yet. But with the right nudging, these types of customers will usually make a purchase.

However, the major benefit of impulse shoppers is the wealth of insight and knowledge that they reel out when you engage them.

They can tell you what attracted them to your business and product, as well as, what motivated them to make a purchase or not.

In relating with these types of customers your action/engagement must be to serve.

You can do so by offering them recommendations and helping them reach a purchase decision.

Canvas does this by creating evergreen content that educates their customers and helps them reach a purchase decision.

Canvas educational content

3. Bargain Hunters/Discount Divers

Bargain hunters and discount drivers are customers that love to buy on the markdown.

These customers are great for helping your inventory turnover and facilitating your cash flow.

But beyond this, you must be wary of such customers and tread with caution when dealing with them.

Why? Discount divers and bargain hunters are naturally prone to returning products, as well as being very hard to turn to loyal customers.

This happens because they are not necessarily interested in your brand but simply want a product for a cheap price and your discount offers them that.

Your duty should be to redirect their attention, just like Buffer does with their blog and newsletters that inform customers about the benefits of the brand.

Buffer blog posts

4. Wandering Consumers/Window Shoppers/Researchers

These customers represent the largest percentage of your store traffic but they spend the least.

Why does this happen?  

Wandering shoppers visit your store in large numbers simply because of its location.

They are not necessarily there because they love your brand or can’t do without your products. But simply for a feel of the experience you offer and the community interaction.

So you would want to minimize your engagement with these types of customers but ensure that they experience the best you have to offer.

For example, Amazon offers customers suggested products to try to catch their eye – just as you might arrange an attractive display in a shop window.

Amazon product suggestions  

This is because wandering shoppers are there mainly for the experience and if it’s good they will spread the word about it to other consumers. And this will do wonders for your brand’s awareness and perception.

The way to view this customer segment is that they are researchers who visit your store to learn about your offer and the experience you give to inform the larger community about what they experienced.

5. Needs-Based Customers

Consumers in this customer segment walk into a store to purchase a particular product and if it is not available they will leave.

Such people have a specific need that they feel your business should have the solution to. This could be several things; a particular product, a specific price, or an occasion.

Such customers may be tough for your salespeople to handle but with the right personal approach, they may be able to win them over.

The needs segment is also susceptible to being converted by other businesses who offer what they want, how they want it.

But by giving them the right customer service experience you may be able to convert them into loyal customers.

Southwest Airlines for instance uses social media to offer prompt assistance to satisfy customer needs.

Southwest Airlines Twitter page customer service

The best way to handle such customers is by attaching top sales personnel to them to listen to their wants and proffer real-time solutions.

The trick is to offer them a level of service that isn’t available with your competitors.

Why is this segment important?

They represent the largest source of your long-term growth, so you would want to cater to them.

Why is Knowing the Type of Customer Important?

Customers are the most important part of a business. The customer is considered the actual CEO in a deal and is the reason for the profits of your organization.

Your customers are the people who use your services and products and judge their quality. So an organization must acquire/retain customers to grow the business.

However, to properly manage customers, approaches like segmentation of customers into types should be followed, as every customer must be considered profitable and valuable.

Though some more than others (regular customers).

The business that seeks to be successful must always focus on regular customers and should multiply its product range to close impulsive customers.

For other customer types, you must innovate and enhance your strategies to turn them into loyal and regular customers.

This is important because one-time shoppers, for example, just want to be a part of a deal ( discounts or coupons ) and won’t come back.

The goal is to build revenue and one-of customer purchases won’t achieve that.

By creating a sustainable and retainable customer base you can boost your profits at a consistent pace.

Repeat customers are committed and valuable to your brand. So you will want to focus on them.

But there’s no way to identify repeat customers without first understanding the various types of customers that come to your brand.

This is why understanding and segmenting customer types is crucial to your business.

That said, there are various ways you can turn all the types of customers into regular customers but before we see them let’s understand what a regular customer is.

What is a Regular Customer?

80% of Sephora’s yearly sales  stem from regular customers via its loyalty program

A regular customer is one that your services and products come to their mind when they need a product or service in your industry.

Your regular customers have infused your business/brand into their lives. It has become a habit for such individuals to visit your organization.

For example, a regular customer will stop by a coffee shop to pick up a latte every morning before work.  Or will visit a Chinese restaurant every Thursday before picking up his daughter from soccer practice.

Humans are creatures of habit and rarely enjoy going out of their comfort zones or daily routines, and as a business, you can capitalize on this to create regular customers.

Why are Regular Customers Valuable?

Regular customers are valuable to business for the following reasons:

1. They Boost Business Growth

Imagine your business is a bucket but there’s a hole under it. And your customers are water being poured into the bucket.

Regardless of the force or quantity of water being poured in, the bucket will eventually get empty.

This is what happens when a brand is void of regular customers. With regular customers, there is no hole in the bucket, and customers that come stay, which means growth for the business. Also, it costs 5× more  to convert new customers than to retain existing ones. So how can you grow with just new customers?

2. Regular Customers Increase Profits

If it takes $200 to convert a new customer, they have to spend the same amount for you to break even and more to make a profit.

Regular customers, on the other hand, not only spend more than new customers on your business. They are responsible for 80% of a company’s profits as we’ve seen above.  Plus, retaining customers can boost your profits by 25 to 125% .

The above points mean that regular customers are the most valuable customer type for your business.

How Do I Create Regular Customers?

Your first move in creating regular customers is understanding your target audience.

Each brand deals with different/unique demographics.

So you must ask yourself the right questions that enable you to adequately relate with your customer base:

• What are my customers’ wants when they visit my business?
• What age bracket do my customers fit in, middle age, young, or old? How should the answer impact my product and service?
• Do I offer the type of product that my demographic is looking for?

Such questions must be asked by your business to help you know who exactly your customers are.

The moment you have a strong grasp on your business’ demographic, and their needs and desires have been established, then you can zoom in on your regular current customers’ wants.

The easiest way to do this is to look at your current regulars — every brand has at least 1 — to know why they keep returning.

Do they keep coming back because of your business’ aesthetics? The location of your company? Or your great customer service?

Every regular customer won’t have similar reasons for returning and you may discover that they may not even know why they’re coming back.

Some may simply be following the herd. This means that they tag along with colleagues and friends,  or their acquaintances recommend your organization.

These are reasons why they may keep returning – even when they haven’t had 100% positive experiences with your brand.

For instance, customers can keep going to a business because their family members have always gone there, or that it is simply the nearest company that offers the product they’re looking for. But if they had another option they’d choose it.

So it isn’t a straight-line process to determine what’s bringing a customer back.

This is why you must be intentional about what creates your regular customers. Don’t leave it to chance.

And to achieve this, you must draw customers in with the customer service experience you offer.

Everyone else can offer the same product you do, but no one can do customer experience the way you do.

A customer who becomes a regular because they love the experience your brand offers them has a stronger reason for patronizing your business than one who keeps returning because there’s no other store around that has the products you sell.  

What are Other Names for Regular Customers?

Regular customers can also be called loyal customers, frequent customers, valuable customers, or trustworthy customers.

What Makes Frequent Customers Special?

Frequent customers are special because they consistently choose your brand over your competitors.

This means that they are extremely dependable and loyal to your business.

What is the Difference Between a Regular Customer and a Long-term Customer?

Not every long-term customer that consistently buys your products is loyal to your brand.

There are numerous reasons a customer may keep purchasing from you:

• You are the only low-cost provider.
• It is too expensive or takes too much effort to get a new supplier.
• The customer is used to your product and it’s a hard habit for them to break.
• Your long-term customer may have a relationship with an employee of your business.
• Your business location is convenient for them.
• Your brand is currently the only available option.

The above reasons mean that a long-term customer may only patronize your business because there is no desirable competitor. And when competition comes they may change to them.

On the flip side, a regular or loyal customer believes that your services and products are better than those of your competition.

They are not looking for alternatives, even if the options are available.

How to Convert Customers into Regular Customers?

Not all customer types are valuable. So the goal should be to convert the various customer types into the most valuable one – regular customers. Here’s how to do so for the following types of customers.  

1. Emphasise Benefits & Branding – Especially for Discount Shoppers

Discount shoppers have a transactional mindset.

This is the complete opposite of a regular customer that’s interested in creating an emotional bond with your business that goes beyond what they spend.

Because of this, discount shoppers are the least loyal customer type and are less likely to purchase again.

To convert this kind of customer to a regular you need to show them the benefits of your offering.

All you should do is direct their attention to different aspects of the purchase decision.

This is done by emphasizing the benefits of your offering and in so doing you shift their focus from future price comparison or direct pricing to what they can get out of the deal.

The reason this works is that you redirect their focus from what you do in comparison to your competitors and magnify what makes your product unique.

The brand oVertone is a great example of this.

oVertone discount conditioner benefits

For their color conditioners they focus on what the item offers the customer.

From how fast it begins to work to the level of hydration it provides your hair with.

This is valuable information and amplifies the probability that discount shoppers will notice and understand the pros of purchasing from them than their competitors.

2. Showcase New Products and Offerings – Especially for Impulse Buyers

Impulse buyers are searching for a product that catches their eyes.

They don’t have a particular product in mind when shopping. Rather they buy when the situation feels or looks like a great idea.

Because of this mentality, impulse shoppers are most times obsessed with purchasing the newest or trendiest products.

This type of customer will change a great product with another because it is trendier or new.

What this means is that impulse shoppers are constantly on the lookout for their next purchase.

It also means that they are very easy to upsell to and will be receptive to recommendations.

They love to know about new products from brands that they admire.

To convert them to regular customers you need to keep them informed and interested in your business.

You can achieve this by encouraging impulse shoppers to subscribe to your email newsletter, and follow your social media pages, as well as, constantly updating your product menu for such buyers via personalization.

Take Steelseries for example, they cater to the impulse shoppers by placing hard-to-miss calls-to-actions at the bottom of their website that invites customers to stay connected in-between purchases via the brand’s newsletter or social media.

Steelseries hard-to-miss call-to-action

They also have a 10% off for the first purchase, which makes it a lot more appealing for impulse customers.

By maintaining constant communication with impulse shoppers the brand keeps them informed about the latest offers.

This in turn keeps impulse buyers continuously purchasing from the business.

3. Be Proactive about Reaching Out – Especially for Need-based Customers

Need-based customers are motivated to purchase from a store to satisfy a need. And if your business doesn’t have the particular product they want, they’ll move over to a competitor.

So to convert this type of customer you must be proactive about reaching out to them when they come around.

Initiate personal interaction by finding out why they want the product.

One good way to do this is by observing the questions, comments, and reactions they have during your automated webinars . Listening to what they have to say will give you better insight into what’s important for them, and which topics they find hard to grasp. You can use this to fuel your content initiatives, moving forward.

By showing such customers that you’re interested in their needs and are out to fulfill them, you can turn them from a needs-based customer to a regular one.

This happens because you shift their attention from satisfying their needs to your great customer service and willingness to help.

For example, Glow Recipe used this strategy with their Glowpedia beauty tutorial portal that covers everything their products help their customer achieve.

Glow Recipe Glowpedia tutorial

4. Offer a No-brainer Deal – Especially for Window Shoppers

Window shoppers are interested consumers who haven’t yet made up their mind on what product they want to get.

This customer type represents the largest percentage of your business traffic but the lowest in revenue.

While you don’t want to focus on this type of customer, their presence at your business shows that they are at least interested in what you offer.

So to capitalize on this interest you may want to find out why they came around.

Some simply need more information before they purchase and others or are just admiring your offer till they’re able to purchase.

To convert them to regular customers you can offer them samples or free trials of your offer to help them make up their minds.

For example, for restaurants, you can give them a signature deal to help push them to make a decision. Or you could make the checkout process very fast and clear to ensure they’re through with the purchase before changing their minds, just like RIPT Apparel does.

RIPT Apparel quick checkout

This type of customer is undecided and your goal is to help them take action. No matter how small.

5. Use a Loyalty Card/Punch Card to Encourage Repeat Purchase

You must be intentional about maintaining and building loyalty. And using a loyalty/punch card can help you keep your regular customers – regular.  

Here’s an example of a punch card from Subway:

Subway loyalty punch card

 Loyalty cards show the customer that their loyalty to your brand is so valuable that it’ll be rewarded.

It also dangles the repeat purchase action before them to always remind them to keep patronizing your business.

That said if you decide to use a paper loyalty/punch card a great idea would be to give out cards with one stamp or punch already issued.

This motivates them to commit to the program. For digital programs, you can get their email addresses to be in constant communication with them and offer specialized deals unique to each customer.

That’s a wrap! Understanding the various customer types you’ll come across when running a business is key to providing quality and relevant service to each customer.

However, your goal should be to convert the various customer types to regular customers, as they are most valuable to your business.

Use the tips listed in this piece to turn the various customer types patronizing your business into loyal customers.

If you’re interested in boosting your word-of-mouth marketing strategy, check out ReferralCandy and InfluencerCandy !

• Posted in: CandyBar Features , Customer Retention , How Loyalty Works , SMB Tips & Tricks
• Tagged in: customer happiness , get more sales , loyalty program , loyalty programs , marketing , Retail Marketing , social media marketing

Posted by Emmanuel Egeonu

The 5 Types of Customers (And How to Get Them to Buy More)

Increase your loyal customers to increase your sales

• Small Business
• Online Business
• Home Business
• Entrepreneurship
• Operations & Success

Mark Hunter is a writer, author, and business development, management, and sales expert with over 20 years of experience. Mark is the author of "A Mind for Sales" and the founder of Sales Hunter University, which is focused on sales training. During his career, Mark has also held multiple sales and leadership roles with several Fortune 500 companies including ConAgra and Kraft.

In the retail industry, it seems as though you are constantly faced with the issue of trying to find new customers. You can become obsessed with making sure your advertising, displays, and pricing all “scream out” to attract new business.

Pursuing new customers  to increase sales is certainly prudent and necessary, but, at the same time, it can wind up hurting you. Instead, your focus should be on loyal customers—the 20% of your clients who currently are your best customers.

Understanding the Five Types

In retail, your best current customers should be seen as an ongoing opportunity. To better understand the rationale behind this theory and to face the challenge of building customer loyalty , you first need to understand the five main types of customers:

• Loyal : They represent no more than 20% of your customer base, but make up more than 50% of your sales.
• Discount : They shop your store frequently, but make their decisions based on the size of your markdowns.
• Impulse : They do not have to buy a particular item at the top of their list, but come into the store on a whim. They will purchase what seems good at the time.
• Need-based : They have a specific intention to buy a particular type of item.
• Wandering : They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience or community.

If you are serious about growing your business , you need to target the loyal customers and merchandise your store to leverage the impulse shoppers. The other three types of customers do represent a segment of your business, but they can also cause you to misdirect your resources if you put too much emphasis on them. 

Here's a further description of each of the customer types and how to deal with them:

Naturally, you need to communicate with these customers regularly by telephone, mail, email, social media , and more. These people are the ones who can and should influence your buying and merchandising decisions. Nothing will make a loyal customer feel better than soliciting their input and showing them how much you value it. The truth is, you can never do enough for them. Often, the more you do, the more they will recommend you to others. And positive word of mouth is gold for business.

This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow. This same group, however, can often wind up costing you money because they are more inclined to return the product . Discount shoppers are not always easily turned into loyal customers, either.

This is the segment of clientele that we all like to serve. There is nothing more exciting than assisting an impulse shopper and having them respond favorably to your recommendations. You should target your displays toward this group because they will provide you with a significant amount of customer insight and knowledge. They are also often eager to make a purchase when nudged in the right direction.

People in this category are driven by a specific need. When they enter the store, they will look to see if they can have that need filled quickly. If not, they will leave right away. They buy for a variety of reasons, such as a specific occasion, a specific need, or an absolute price point. As difficult as it can be to satisfy these people, they can also become loyal customers if they are well taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, they often represent your greatest source of long-term growth.

It is important to remember that need-based customers can easily be lost to Internet sales or a different retailer. To overcome this threat, positive personal interaction is required, and usually from one of your top salespeople. If they are treated to a level of service not available from the web or another retail location, you have a very strong chance of making them loyal customers.

For many stores, this is the largest segment in terms of traffic but the smallest in terms of sales percentage. There is not a whole lot you can do about this group because the number of wanderers you have is driven more by your store location than anything else.

Keep in mind, however, that although they may not represent a significant portion of your immediate sales, they are a real voice for you in the community. Many wanderers shop merely for the interaction and experience it provides them. Shopping is no different to them than it is for another person to go out to eat. Since they are merely looking for interaction, they are also very likely to tell others about the experience they had in store. Therefore, although the time spent with wandering customers should be minimized, they cannot be ignored.

Serving the Five Types of Customers

Retail is an art backed up by science. The science is the information you have from financials and research data (the "backroom stuff"). The art is in how you operate on the floor: your merchandising, your people, and, ultimately, your customers. For many in retail, the competitive pressure has never been greater, and it is only going to become more difficult. To be successful, it will require patience and understanding to know your customers and the behavior patterns that drive their decisions.

Using this understanding to help turn discount, impulse, need-based, and even wandering customers into loyal ones will help grow your business. At the same time, ensuring that your loyal customers have a positive experience each time they enter your store will only serve to increase your bottom-line profits.

10 Types of Customers and What They Need

Table of content, using market segmentation to identify different types of customers.

How to Approach Loyal Customers

How to Approach Impulse Customers

How to Approach Discount Customers

How to Approach Need-Based Customers

How to approach wandering customers, how to approach researcher customers, how to approach unsure customers, how to approach lapsed customers, how to approach unhappy customers, how to approach referral customers.

According to Zendesk’s 2024 CX report, 80% of companies are planning to increase their investment in customer service . So why are companies refocusing on customer experience? Because it is one of the most important areas of a business that can increase revenue and profitability for a company. Businesses like yours need to understand different types of customers to offer the best customer service and beat out the competition. 

By understanding different types of customers, you can offer to customize their experience through personalized customer service types. These can include multilingual support, AI chatbots, and tailor-made customer service. Pexly can take care of your customer service needs with its experienced team, leaving you to focus on growing your business!

What Is the Best Way to Identify Different Types of Customers for Your Business?

Did you know? A whopping two-thirds or 67% of customers who feel like a business cares for their emotional well-being will become repeat customers . This makes understanding your customers one of the most important tasks and the best way to achieve this is by identifying different types of customers. 

Once you identify these customers, you can easily allocate resources to cater to their specific needs reaping the rewards such as a high ROI and brand loyalty . So what is the best way to segment customers and is that even possible? Let’s find out below!

Market segmentation can help you effectively understand different customer types and their buyer personas. The most common ones include: 

• Geographic: In this type of segmentation, customers are categorized based on their area of residence such as their neighborhood, city, or country. 
• Demographic: Here, different types of customers are segmented based on their age, gender, level of education, and income brackets. 
• Behavioral: Interaction with the brand, shopping history, and product usage can also be used to categorize different types of customers. 
• Psychographic: Customers can also be segmented based on their preferences, likes/dislikes, values, and opinions.

Pro-tip: Customer feedback on call, in-shop, or via mail can help you get meaningful information that you can use to segment your unique customer base. 

Understanding Different Types of Customers: The Essentials

Enhancing customer experience was one of the top priority areas in 2022, according to McKinsey . While there are many ways of doing that, one tried-and-tested path is to understand what type of customer you are dealing with. This ensures that you are offering the right value to your customers while not wasting important business resources. 

In the world of data, you can use different tools to gather meaningful insights about your customers. This includes surveying customers online (social media, emails) and offline (mail, phone, text) to collect valuable feedback. Just so you know, human beings tend to lose attention in j ust 8 seconds which makes phone calls an ideal medium to collect feedback from customers. 

Similarly, by analyzing data gathered at point-of-sale (PoS) and feedback. These trends can help you understand different customer preferences for different segments. Likewise, market research such as interviews and focus groups can also help you understand customer insights. 

By understanding different types of customers, you can personalize your customer experience strategy allowing you to attract and retain more clients. Let’s look at different types of customers and how to approach them!

1. Loyal Customers

Did you know the customer loyalty market is projected to increase to $24 billion by 2028 in the U.S. Having been a part of your customer base for years, the loyal customer is the joy of the sales department. Yet there is added pressure for the support team to be aware of and able to handle any specific needs this customer might have. Since they already have a preference for your company, loyal customers can be a way to foster organic marketing if you can get them to share their stories on social media.

When it comes to loyal customers, you need to be proactive. That means getting ahead of an issue before it escalates or even happens. And even if their issue isn’t completely your company’s fault, offering some discount or loyalty reward can be a great way to appease loyal customers and increase the likelihood that they will tell other potential customers about your business.

Approaching loyal customers requires an active effort from business leaders. 86% of customers are more loyal to brands where they can participate in loyalty programs. Loyalty programs for loyal customers such as bonus points or exclusive awards can help engage loyal customers. Similarly, loyal customers can also be approached by positive gestures like personalized notes and gifts (for instance a small note or gift on their birthdays). 

You can also approach loyal customers by saving their information in your databases and giving them priority in customer service or feedback. By offering customized types of customer service such as multilingual support you can also enhance your brand’s value for these loyalists. Pexly offers an experienced team of customer service agents that are perfect for retaining your loyal customers. 

2. Impulse Customers 

This is one of the more interesting types of consumers because they are quick to buy when something catches their eye , but aren’t always the best at reading the fine print. 73% of customers in the U.S. acknowledge that they make purchasing decisions impulsively. So in situations where these types of customers get a product that isn’t exactly what they thought it was, they might also be impulsive in calling customer support. 

The impulse customer does sometimes have a legitimate support concern so initially, they should be approached as you would any other ticket. When dealing with such client types, be sure to keep in mind what they are most likely going to be looking for assistance with product use cases, warranty issues, and return policies . Therefore, you must show them empathy rather than trying to make the sale

One way to attract impulse customers is to market l imited-time offers to encourage quick purchasing by impulse customers. Likewise, flash sales – where product prices are reduced for a short time – can also help you approach impulse customers. You can also use alluring and eye-catching visualizations in-store and online to charm impulse buyers. Chances of purchasing by impulse customers also increase if the purchasing journey is easy with convenient checkout options.  Similarly, marketing online (social media)  and offline (via phone or text) with convincing content can help you approach impulse customers more effectively. Impulse behavior is more common online where impulse purchases make up 40% of tota l purchases. This makes the use of social media and digital marketing assistance important types of customer service to attract impulse buyers and with Pexly’s professional social media support , your online presence is in good hands.

3. Discount Customers 

Discount customers play an important role in turning over a company’s inventory. Therefore, discount customers are a key contributor to a company’s cash flow . This type of customer seldom purchases products at full price and shops around for the best markdowns. Discount customers are resilient to upselling, are usually the least loyal segment of customers, and generally move on when better markdowns are available elsewhere.  Discounts can also be used to attract more clients to your business with 86% of online customers willing to try a new business with a coupon. When working with such types of clients, it’s important to give them what they are looking for. If you are having a sale, consider sending them some promotional materials or be proactive and call them to share the news. This way you will be able to turn them into loyal customers.

A whopping 93% of customers use a discount code or coupon in a year , according to Statista.  Hence, sending customized discount offers based on past shopping behaviors can help you target discount customers effectively. You can also extend this into a loyalty program and provide limited-time offers to discount customers who sign up for a discount program. Similarly, seasonal promotions such as off-season sales (fall/spring) or holiday sales (such as Christmas) can prove to be fruitful in reaching out to discount customers. 

Another effective strategy to approach discount customers is to use bundle pricing where you can combine two or more products and make a bundle less costly . Moreover, you can also initiate a point card system that encourages customers to spend more to gain redeemable points. Several types of customer service can be offered to discount customers including AI chatbots and 24/7 call assistance.

4. Need-Based Customers

Need-based customers are driven by a specific need. In other words, they enter the store quickly, purchase what they need, and leave . These customers buy for a specific need or occasion and are hard to upsell. It is important to note that need-based customers can be easily drawn to other businesses with 66% of customers expecting the company to understand their needs, according to HubSpot. 

When your agents are communicating with such types of customers,  it is important to initiate positive personal interaction with this customer segment to retain them. Converting need-based customers to loyal customers is attainable with proper positive personal interactions.

One effective method to approach need-based customers is through logical marketing where you highlight features and benefits of a product to show what type of problem they can solve. Similarly, informative content like blogs, guides, and in-store audio can also highlight the potential usefulness of a product thus making it attractive for need-based customers. 

More often than not it’s not what you say but how you say it that makes the difference. For need-based customers, you can rebrand potential items as customized solutions to potential problems that need-based customers might face.  Customer support is also considerably important as these customers want to make sure they are purchasing the right product. Having a well-informed, professional, and competent customer service team with diverse types of customer service can assure and inform needs-based customers effectively thus increasing the chances of a successful purchase. At Pexly, we offer personalized and professional customer support agents that can enhance the brand value of your business.

5. Wandering Customers

Wandering customers draws the largest amount of traffic to the company while making up the smallest percentage of sales revenue. According to one research, 60% of customers in America are prone to window shopping online. They have no specific need or desire in mind and are attracted by the location of the business more than anything else. These customers enjoy the social interaction of the shopping experience.

When working with wandering customers, we do not recommend spending too much time trying to appease this segment since this can draw away from the more profitable segments. Although this segment generates the least amount of sales revenue, providing insightful information about products to these customers can stimulate interest and ultimately result in a purchase.

You may think wandering customers are difficult to approach and convert but with the right plan, these customers can provide high value. You can start by making the shopping environment cozier, brighter, and more attractive to retain these wandering customers for a longer time. Moreover, placing high-value items in prominent places can attract wandering customers to stay interested in your product offerings. You can even provide a demo of the best-selling items to grasp their attention and engage with the product one-on-one.

Creating unique product offerings that highlight the item’s value such as history, creation, and origin can also attract wandering customers. Giving away free samples by way of exploration can also lead to conversion for wandering customers. Moreover, AI chatbots are one of many distinct customer service types that can do wonders with wandering customers by offering valuable suggestions based on historical data and present interactions. 

6. Researchers 

68% of customers today believe that they are well-placed today compared to 5 years ago to make well-informed decisions. Researchers are the types of customers that will find any information they can about the product they are looking for and they will not hesitate to spend a lot of time doing it. For them, every detail is important. The good thing is that they know what they want and are willing to spend more money to get it. 

When encountering researchers, it is important to give them exactly what they are looking for i.e. information. You can personalize customer service types to provide detailed information about products you are selling since these types of customers will grill you about even the most minute details.

Approaching researcher customers can be achieved by being as detailed as possible in your product offering . For instance, you can provide a thorough description of your items including their features and benefits to attract research customers as 30% of customers tend to abandon their shopping experience due to poor product description. Similarly, you can also provide FAQs and use competent customer service agents to answer common questions that research customers may have regarding the product they are purchasing. 

Curating engaging content such as comparison guides between different brands can signal to researcher customers that you care about their time and have confidence in your products. Nothing screams credible louder than customer reviews and testimonials therefore you can use these online as well as in brick-and-mortar shops to highlight client satisfaction. To demonstrate product expertise, you can also support research customers to connect with brand/product experts to understand more about the product and gain their trust. Sounds familiar? Apple does this with its Genius Bar!

7. Unsure Customers 

These customers can range from “tire kickers” to people who are simply sitting on the fence. According to one academic study , unsure customers often feel mixed up and have negative emotions which can decrease your chances of a successful sale. They have a genuine need for a specific product and will react well to agents providing them with more information on making a good decision. The good thing is that unsure customers will come back to you if they had a good experience since they already know you offer quality products. 

It is important to understand what’s preventing these unsure customers from making a purchase. This can be simply accomplished by asking them or putting their mind at rest with some sort of warranty or guarantee that their purchase is protected and you stand by your product.

Unsure customers can be best approached through a friendly approach where you can listen to their queries and provide satisfactory replies. With every 1% increase in customer satisfaction , the retention rate increases by 5%. As these customers are unsure about their purchase decision, you can implement proactive customer service types to educate them through blog posts, detailed product outlines, and well-informed customer service agents. You can also approach unsure customers by highlighting customer testimonials and feedback which reflects your commitment to quality.  To make their purchasing decision easier, you can also offer them customized support to compare different products and make an informed decision. Likewise, you can reduce the unsure purchase part by promising a product-return policy and money-back guarantees in case their purchase falls short of expectations. With Pexly’s dedicated phone answering service you can address customers’ confusion like never before!

8. Lapsed Customers 

There are different types of customers out there but they all have a specific time window for making a purchase . If you miss this time window, the customer will simply put off making the purchase and it will be really hard to activate them. Therefore, you want to avoid the lapsed customer at all costs. 

Now, let’s say that a customer has lapsed. What do you do? Well, you will need to get proactive and contact them with relevant information . If you know the product they were looking for, consider calling them and inviting them back to make a purchase.

Lapsed customers can also be approached by taking a proactive approach and communicating with them. One research finds that there’s a 20 – 40 percent chance of selling to lost customers.  For instance, sending personalized reminders (using their names) about coming back can positively reinforce your brand image in their subconscious. Similarly, you can attract them with targeted discounts that only last a limited amount of time. To retain lapsed customers, you can use several interesting customer service types including dedicated chat support, warm calling, and follow-up to catch their eye once again.

You can also engage them on non-discount topics such as by sending a company newsletter for customers highlighting the company’s new initiatives and commitments. These open communications can create a back-and-forth trust that can translate to a stronger relationship between you and the lapsed customer. 

9. Unhappy Customers 

These are the customers who are frustrated and unhappy about your service or the product that they bought. They usually received bad customer service and, in general, did not have a good experience with your business. These are the types of customers you want to avoid because they can tell their friends about their negative experiences and cause damage to your reputation.

On the bright side, 70% of unhappy customers are willing to try the business again if their problems are resolved. When dealing with unhappy customers, it’s important to be empathetic. Empathy is essential for understanding where a customer is coming from and for taking the conversation forward accordingly. For busy support teams, it can be tempting to jump to a solution as quickly as possible. Unfortunately, this means rushing the customer through an explanation of their problem. And while this may be the fastest way to understand what’s going on, it’s not the most effective.

The best way to approach unhappy customers is by being honest and sincere. As a business leader, you need to demonstrate that you care for their feelings and want to genuinely make them happy. As the quote goes ‘customer is always right’ and you can easily talk to unhappy customers by offering an apology and actively listening to them. Acting quickly and finding a potential solution can also help heal wounds and start a new relationship with unhappy customers. 

One problem with unhappy customers is that only 4% of them will ever complain to you directly, making it difficult to identify and address the issue. By using positive language and being professional, you can make great leaps in approaching unhappy customers and converting them. Moreover, by following up and asking for their feedback, you can also implement changes that reduce the probability of unhappy customers in the future. 

10. Referral Customers 

These customers have been referred to you by another customer who had a positive experience with your brand. According to Harvard Business Review, a referred customer is 18% more likely to stay with your business. These are great customers to have since they usually have high conversion rates and they will not be afraid of buying from you since they already received a positive reference from a source they trust. 

If you get referral customers, it’s important to match their expectations . Remember, their friend told them about what a wonderful business you have and you want to live up to their expectations. This means that they will also tell their friends about their positive experiences and hopefully bring in new business.

To successfully approach referral customers, you can start by talking about the referral itself to build a connection . You can also personalize your approach based on the referrer’s background to create a more appealing environment for the customer. Similarly, you can honestly ask the customer about their expectations from your business to ensure standards are met. 

As you may have heard ‘ first impression is the last impression ’, therefore creating a big first expression can also support you in approaching the customer. You can also offer promotions and discounts to create an exclusive environment among referred customers. Remember, 78% of businesses acknowledge getting more leads from referral marketing, making it one of the best strategies for lead generation. With Pexly’s experienced sales and marketing team , you can give your business a much-needed boost.

That’s a wrap! These are the ten different types of customers that you will face daily in your customer interactions. By understanding these unique customers, you can enhance your customer experience (CX) by providing personalized customer care and improving customer retention rates. Moreover, you can also tailor promotions and discounts to target specific customer types based on seasonality, prices, and competition. 

This article covered the top 10 types of customers you may come across in your business. It is important to personalize your customer strategy depending on the customer type . For instance, dealing with a loyal customer and a lapsed customer requires quite different approaches. From discounts and promotions to follow-up calls and active engagement, each customer needs to be approached differently. 

With Pexly , you can focus on your core business model while our experienced team takes care of your customer service. From customer care and tech support to sales and marketing support and social media assistance, Pexly offers customer experience solutions tailored to your business.

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Customer Groups: Maximizing the value of collected data

Customer groups can be a powerful way to maximize your value. You may find that you have customers who want the exact solution for different projects but require slightly different features or support options. For example, you might sell an email marketing tool but realize that all of your small business clients want a simple way to contact their customers.

Your enterprise clients need complete customization capabilities, so you create different products for each group with all the same features. Let’s talk about how to build customer groups are why they are valuable.

What are customer groups?

Customer groups are assemblages of customers who collaborate to consume data from a particular topic and then deliver feedback. In each group, the information sections are divided among the customers; therefore, a useful way to re-use the information given to cover all angles is to reallocate it as new members arrive and older members depart so that each member receives a proportionate share.

In simple words, customer groups bring together prospective buyers/customers who have similar needs and respond similarly to marketing efforts and maximize your value proposition.

How to create a customer group

To collect relevant data, you must make sure you’re grouping your customers properly to target the right audience and obtain data accuracy.

Market segmentation or customer groups are usually done on five levels: Demographic segmentation, psychographic segmentation , behavioral segmentation , geographic segmentation, and firmographic segmentation. Each level represents an opportunity for specific data collection that translates into targeted business efforts and product segmentation .

Where can I use customer groups?

Customer groups serve multiple purposes: to support your marketing efforts to increase your customer base, create loyalty, and build a relationship with your potential.

Already existing clients, another common usage of groups is to sustain your business strategy. The data collected can help you target accurate and realistic goals for your operation, bringing to light the main areas of opportunity in your know-how.

What are the different customer groups?

Identifying each type of customer allows you to make business-oriented decisions, taking advantage of each trait in their group.

Loyal Customers

All businesses rely on customer loyalty that invests their time and money in their brand to succeed. And it’s imperative that you take care of your loyal customers.

They might represent a small percentage of your client base; however, studies have shown they usually generate the majority of your income while also allowing new products or services to be tested because their loyalty is generally to the brand, not the product.

Impulse Shoppers

This group represents a gold mine when it comes to revenue. Consumers who surf products and services without having any particular purchasing goals are known for their large spending. And just like loyal customers, they also represent a great opportunity for new products to be introduced by impulsive buying .

Bargain Hunters

Bargain Hunters shine for their hunger for a great deal; they are usually out for blood regarding price, quality, and delivery time. They’re not easy to sway; they rarely become loyal customers or brand ambassadors as their fidelity to saving and novelty variables.

Wandering Consumers

Wandering customers are a mixed group of customers because they’re impulse buyers without the likelihood of completing the purchase; they usually ramble about, as their name implies.

Need-Based Customers

Easy, fast, proactive, practical customers, this group represents the mindset of “I need it, I see it, I got it” this is how you usually turn them into loyal customers; by providing fast solutions to their needs, it is also imperative to be the first in delivering since this type of customers are easily lured away into the competition.

LEARN ABOUT: Consumer Decision Journey

How to Leverage Your Consumer Groups & CTA

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To do this, you can use your own segmented databases or opt for the use of online panels.

QuestionPro Communities software is the only market research tool you’ll need. Explore the only tailored-to-your-needs platform and start conducting your own research as soon as possible.

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7 Different Types of Consumers: Guide to Marketing Them

Marketplace competition can be extremely fierce for various industries especially when you’re trying to sell profitable, in-demand goods and services. To stay ahead of the game, it is essential to understand the types of consumers and how to effectively market to them. 

By leveraging the ever-changing world of marketing, you can create an approach that drives results and gives you a competitive edge at the same time. To help you better understand the different types of customers, this guide will discuss the seven types of consumers you’ll most likely encounter.

What Are the Different Types of Consumers? 

Whether you’re a business owner or a marketer, understanding the different types of consumers is essential to creating effective marketing campaigns. After all, customers will always have different needs, interests, and motivations when buying a certain product or service.

With that being said, here are some of the most common types of consumers and how to market each one.

1. New Consumers

Expect a lot of inquiries when dealing with first-time and new consumers. They’ll be needing your guidance at this stage since they’re still trying to understand what you’re offering and are most likely not looking for someone to upsell them. 

Answering questions from new customers can be intimidating, but it’s important to remember that first impression last. This is your chance to build a relationship of trust that can potentially turn them into loyal customers in the future. 

Being friendly and helpful will help you create a positive experience for your customers, which can lead to more business down the line.

How to market them

• Provide excellent customer service by putting in the extra effort to offer live chat, video chat, and co-browsing.
• Answer inquiries properly and give guidance when necessary.

2. Need-Based Consumers

As the name suggests, this type of customer makes purchases when only needed. Examples include:

• Household needs
• Vacation essentials
• Hardware products
• Insurances (e.g. health and auto)

By tapping into consumers’ desires and motivations, businesses can create a compelling need for a certain product that will prompt customers to purchase it immediately, in order to fulfill their specific purpose.

• Anticipate possible consumer needs and create a customized marketing plan to satisfy them.
• Offer goods and services across multiple channels, both online and offline media, to reach more audiences.

3. Wandering Consumers

Probably the least profitable customer, wandering consumers are those occasionally entering the store just to look around. They might ask random questions about your products but will show no to little interest in purchasing them.

More common in physical stores, this type of consumer can still sometimes show up in online stores from time to time. Although they don’t have specific needs in mind, there’s still a chance that you can convert them to buying your goods, provided that you can successfully pique their interests.

Grab their attention by providing relevant information about your products or services.

4. Loyal Consumers

Impressed with your brands and services, loyal customers should always be taken care of since they keep coming back to support your business. 

The benefits of gaining loyal consumers are immense – not only do they provide positive word-of-mouth advertising by recommending your services to others, but they can also provide invaluable testimonials that will help to attract new customers. 

With this organic marketing by your loyal customers, your business can continue to thrive and establish a strong, reliable reputation among your competitors!

• Feature testimonials from your loyal customers across your website and social media accounts.
• Understand what they liked about your business and utilize this strength to grow your business.
• Be proactive and get ahead of any issues even before it happens in order to ensure customer satisfaction.

5. Discount Consumers

Interested in availing of your discounts and promos, this type of customer will probably not engage in your services unless you offer discounts. They would rather wait for special occasions to shop for discounted prices rather than pay for products at their full price.

Moreover, offering discounts can be extremely beneficial to your business. Not only will it draw in more customers and increase sales, but it can also help to clear out your inventory and free up space. 

• To make the most out of your promotions, strategize your timing and marketing efforts in order to maximize conversions.
• Offer good deals that will make your consumers understand the value of the discount.
• Promote your discounts through email, social media, or brochures.

6. Impulse Consumers

Many buyers tend to purchase on impulse, often without taking the time to research the product they are buying. As a result, they may find themselves regretting their purchase and calling customer service for a refund. Although this is not always the case, it won’t hurt to have a product replacement script ready for situations like this. 

• Come up with clear guidelines regarding warranty or return policies and explain them properly.
• Sympathize with their concerns without promising anything until you’ve thoroughly reviewed the case.
• Give full assistance if returns are to be made. 
• Make your website appealing and interesting to encourage purchases.

7. Unhappy Consumers

One of the most challenging types of consumers, unhappy customers can be delicate to deal with . There could be a variety of reasons why they are displeased with their purchase, such as dissatisfaction with the product, packaging, or even your customer service.

They won’t hesitate to air their disappointment and will make it known by leaving reviews on your social media channels. If not resolved right away, these reviews may lead to negative publicity and hurt your business, hence it’s essential to handle their concerns properly and immediately.

• Often check customer reviews and messages so you can handle any concerns immediately.
• Reach out to unhappy customers and follow up on their concerns. Understand their complaints and provide solutions in order to prevent them from turning into angry customers.

Handling Various Types of Customer

By knowing the needs and interests of each consumer, you can tailor your marketing strategies in order to maximize the success of your campaigns. This knowledge can help your company to better target the right audience, earn loyal consumers, and improve your financial gains.

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Consumers: Definition, Customers vs. Consumers, Behavior, and Types

What are consumers.

Consumers are the end users of any product. A consumer is someone who purchases products or services for personal or business use.

These consumers directly use goods and services rather than using them for resale purposes.

Some of the common examples of consumers include:

• A person using software to book a doctor’s appointment
• Someone eating a breakfast cereal
• A kid wearing a school uniform shirt
• Businesses using employee management software

Customers vs. Consumers

We often hear people interchangeably using the words ‘consumer’ and ‘customer’. However, there are significant differences between the two. Let’s find out what they are:

A customer can be an individual or a group of people who purchase products or services. However, they may or may not consume the product themselves.

A consumer is a person or business who uses the products they buy.

Reselling Products

A customer may resell a product for profit generation.

Consumers don’t resell products for profit. They instead use it for their own benefit.

Payment for Product or Services

Customers usually buy products or services.

Consumers may or may not buy products or services.

Why Is It Important to Understand Consumer Behavior?

Consumer behavior is the study of how people purchase goods and services for personal consumption. It takes in several factors i.e. from shipping frequency to product preferences.

Several other factors also affect a consumer’s behavior and their buying decision, including:

• Cultural (culture, subculture, etc.)
• Social (family, reference groups, roles, and status)
• Personal (age, lifestyle, occupation, personality, income)
• Psychological (motivation, learning, perception, attitudes, and belief).

Benefits of Understanding Consumer Behavior for Business

For a business, it is really important to understand the behavior of its potential consumers. Understanding consumer behavior can help businesses:

• Attract new consumers
• Retain current consumers
• Develop effective marketing strategies
• Predict an upcoming shift in marketing trends
• Stay relevant in the market
• Easily introduce new products into the market
• Improve customer service

Types of Consumers

Consumers can be of different types based on their psychographics and demographics. Here are a few consumer types you should know about:

Impulsive Consumers

Impulsive consumers are the ones who make unplanned purchases. They usually don’t shop for products or services with anything specific in their minds. Their purchase decisions are emotionally driven rather than logically driven.

Need Based Consumers

These consumers purchase a product or service to fulfil a need. Need-based consumers enter a store and purchase decisively as soon as they find what they are seeking. Such consumers are more likely to make a quick purchase decision and are not loyal to any brand in particular.

Loyal Consumer

These are the type of consumers who are committed to buying a certain product or service. Loyal consumers are the bedrock of any business and businesses generate most of their income from these consumers.

Wandering Consumers

Wandering consumers or window shoppers are another important segment of your consumer base. They are just like impulsive consumers but less likely to make a purchase. These people are usually attracted to a store location or appealed by social interaction during shopping and have no specific product or service in their mind.

Discount Consumers

These consumers are the ones seeking the best discounts. They are swayed by seasonal or event-based sales. Discount consumers are frequent market visitors but only make a purchase when there is some kind of discount on the products. In fact, 53% of consumers say they are compelled to buy from discounts or deals.

Q: What are different types of consumer products?

Ans: Consumer products can be classified into four types:

• Convenience products (commonly purchased i.e. paper, pencil, food items etc.)
• Shopping products (purchased less frequently i.e. clothing, airline tickets, etc.)
• Speciality products (products with unique characteristics and brand identification i.e. perfumes, watches, etc.)
• Unsought products (not purchased under normal circumstances i.e. life insurance, gold ring, etc.).

Q: What are the types of consumer feedback?

Ans: Consumer feedback can be of two types:

• Active Feedback: Businesses collect active feedback by conducting surveys or reviews.
• Passive Feedback: This is the feedback that a customer gives without asking.

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PESTLE Analysis

Insights and resources on business analysis tools

Consumer Analysis: Why Every Business Plan Needs One

Last Updated: May 31, 2023 by Abdul Momin Filed Under: Business

Imagine you’re an entrepreneur with a brilliant business idea , your passion fueling your dreams of success.

You dive headfirst into crafting a detailed business plan , outlining your product, pricing, and marketing strategy. But wait! Have you forgotten something crucial?

Have you genuinely delved into the depths of your potential customers’ minds? Then, it’s time to pause, rewind, and redirect your attention. Welcome to the world of consumer analysis , the secret ingredient every business plan needs.

Strap yourself in as we unravel the mysteries of your target audience, uncover their desires and preferences, and unleash the power of understanding.

Prepare to embark on a journey where your business transforms from a mere concept to a thriving empire, all by simply understanding the minds of those who matter most, your customers.

So, why wait another second? Let’s dive into the captivating realm of consumer analysis and discover why it’s the key to unlocking your entrepreneurial triumph!

What Is Consumer Analysis?

Consumer analysis systematically examines and understands the characteristics, behaviors, preferences, and needs of a target market or specific consumer group.

It involves gathering and analyzing data to gain insights into consumer demographics, psychographics, buying habits, motivations, and perceptions.

Consumer analysis aims to uncover valuable information that helps businesses make informed decisions regarding product development, marketing strategies , pricing, distribution, and overall customer experience.

By conducting consumer analysis, businesses can identify their target audience, understand their needs and wants, and tailor their offerings accordingly.

This process involves various research methods such as surveys, interviews, focus groups, observation, and data analysis from diverse sources like market research , social media analytics, and customer feedback.

Consumer analysis provides vital insights into consumer trends, preferences, and behaviors, allowing businesses to develop effective marketing campaigns , enhance their products or services, and ultimately increase customer satisfaction and loyalty.

5 Types of Consumers

Businesses need to have information about different types of consumers . This section highlights different types of consumers in the market.

1. Loyal Customers

Loyal customers consistently choose a particular brand or business over competitors. They have a strong affinity and emotional connection to the brand, often stemming from positive experiences, quality products or services, and excellent customer service.

Loyal customers exhibit repeat purchase behavior, actively recommend the brand to others, and may be less price-sensitive than other consumer types. Therefore, they are crucial for businesses as they contribute to long-term revenue and serve as brand advocates.

2. Impulse Shoppers

Impulse shoppers make unplanned purchases based on immediate desires or emotions. They are easily swayed by eye-catching displays, limited-time offers, or sudden impulses.

Impulse shoppers often act on impulse rather than careful consideration, resulting in spontaneous buying decisions. Businesses may target impulse shoppers through persuasive marketing techniques, strategically placed point-of-sale displays, or limited-time promotions.

3. Bargain Hunters

Bargain hunters are consumers who actively seek out discounts, deals, and the lowest possible prices. They are highly price-sensitive and willing to invest time and effort in researching and comparing prices before purchasing.

Bargain hunters are motivated to find the best value for their money. They may switch brands or retailers based on price considerations. Businesses targeting bargain hunters must emphasize competitive pricing, promotions, and value propositions to attract and retain these customers.

4. Wandering Consumers

Wandering consumers engage in window shopping or browse without a specific intention to purchase. Instead, they may visit retail spaces or browse online platforms out of curiosity, entertainment, or gain inspiration.

Wandering consumers allows businesses to capture their attention, showcase products or services, and potentially convert them into buyers. Effective visual merchandising, appealing displays, and engaging customer experiences can be essential in capturing wandering consumers’ interest.

5. Need-Based Consumersomers

Need-based consumers make purchases based on specific needs or problems they aim to solve. They seek products or services that fulfill a particular requirement or address a specific pain point.

Practical considerations and value functionality, reliability, and effectiveness drive these consumers. Need-based consumers often conduct research, compare options, and make informed decisions based on how well a product or service meets their specific needs.

How To Conduct A Consumer Analysis?

Conducting a customer analysis is essential for gaining deep insights into your target audience and their preferences. Following is a framework outlining the key steps and methods for conducting a comprehensive customer analysis.

1. Define Your Objectives

Clearly identify the goals and objectives of your customer analysis. Next, determine what specific insights or information you seek to gather about your target customers.

2. Identify Your Target Customer Segments

Segment your customer base based on relevant criteria such as demographics, psychographics, behaviors, or purchasing patterns. This helps you create focused and tailored strategies for each segment.

3. Gather Data

Collect relevant data about your target customers using several methods, such as surveys, focus groups, interviews, social media listening, website analytics, and market research reports.

This data can include demographic information, purchasing behavior, motivations, preferences, needs, and satisfaction levels.

4. Analyse Customer Data

Analyze the collected data to identify patterns, trends, and insights. Look for commonalities and differences among customer segments and better understand their behaviors and preferences.

5.    Develop Customer Personas

Create detailed customer personas that represent your different target customer segments. Include demographic information, preferences, motivations, pain points, and buying behavior.

This helps humanize and visualize your target customers, enabling more effective marketing strategies.

6. Identify Customer Journey

Map out the customer journey, including customer touchpoints and interactions with your brand. Understand their behaviors, emotions, and needs at each stage of the journey to improve customer experience and identify areas for improvement.

7. Conduct Competitor Analysis

Competitor analysis will help you analyze your competitors’ customer base and compare it with your own. Identify their target customers, value propositions, and strategies to gain insights into your market positioning and opportunities for differentiation.

8. Evaluate Customer Satisfaction and Feedback

Measure customer satisfaction through surveys, feedback forms, or Net Promoter Score (NPS) surveys. Monitor online reviews and social media mentions to understand customer sentiment and identify areas for improvement.

9. Identify Opportunities and Challenges

Based on the insights gained from the customer analysis , identify opportunities to serve your customers better, address their pain points, and meet their needs. Also, recognize any challenges or barriers impacting customer satisfaction and loyalty.

10. Develop Actionable Strategies

Use the findings from the customer analysis to develop actionable strategies and initiatives that align with your target customers’ preferences and needs. Then, tailor your marketing messages, product offerings, customer service, and overall brand experience accordingly.

11. Monitor And Update

Customer analysis is an ongoing process. Continuously monitor and update your customer data, personas, and strategies to stay attuned to changing customer needs and market dynamics.

An Example of Consumer Analysis

This section discusses an example where consumer analysis is conducted on Generation Z, the youngest and increasingly influential consumer segment.

By exploring their shopping habits, preferences, and values, businesses gain invaluable insights into this generation’s unique characteristics and tailor their strategies to engage and cater to their needs effectively.

Demographics And Psychographics

Generation Z, born between the mid-1990s and early 2010s, represents a diverse and digitally native consumer group. With a strong affinity for technology and a global perspective, they possess distinct demographic and psychographic attributes.

Factors such as age, education, income, and cultural backgrounds contribute to the rich diversity within this generation. Psychographically, Generation Z values authenticity, inclusivity, social responsibility, and personalized experiences.

Data Collection and Analysis

To unravel the shopping habits of Generation Z, a comprehensive consumer analysis was conducted using a combination of online surveys, social media monitoring, and focus groups.

The survey aimed to capture data on shopping preferences, brand perceptions, digital engagement, social media influence, and emerging trends. The collected data underwent rigorous analysis to uncover patterns and insights that inform effective strategies.

Key Findings

1. mobile-centric shopping.

Generation Z’s shopping habits are predominantly mobile-centric, with smartphones serving as their primary shopping tool.

They engage in product research, price comparisons, and online purchases through mobile apps and optimized websites.

2. Authenticity and Transparency

Generation Z values authentic and transparent brand communications. They seek brands that align with their core values, champion social causes, and demonstrate ethical practices.

They rely on peer reviews, user-generated content , and social media influencers for trustworthy recommendations.

3. Experiential Shopping

Generation Z seeks immersive and memorable shopping experiences. They are drawn to interactive store environments, pop-up shops, and personalized offerings.

Physical retail spaces that offer sensory stimulation, social interaction, and opportunities for self-expression resonate strongly with this cohort.

4. Social Media Influence

Social media plays a significant role in shaping Generation Z’s shopping decisions. As a result, they actively engage with brands on platforms such as Instagram , TikTok , and Snapchat.

Influencers, particularly those who align with their interests and values, sway considerably over their purchasing choices.

Actionable Strategies

Based on these insights, businesses can adopt targeted strategies to engage Generation Z effectively. Here are some actionable steps derived from consumer analysis.

1. Mobile-First Approach

Optimize the online shopping experience for mobile devices, focusing on user-friendly interfaces, seamless navigation, and secure payment options.

Communicate brand values, sustainability efforts, and ethical practices transparently through various channels, emphasizing authenticity and social responsibility.

3. Experiential Retail

Create immersive and interactive retail experiences with gamification, personalization, and social media integration. Offer pop-up shops, limited edition releases, and unique in-store events to drive engagement.

4. Influencer Collaborations

Collaborate with relevant influencers who resonate with Generation Z’s interests and values. Leverage their reach and authenticity to amplify brand messaging and cultivate trust among this audience.

Significance of Consumer Analysis In Business Plan

Consumer analysis holds great significance in a business plan for several reasons. This section will highlight the advantages of conducting consumer analysis in a business plan.

1. Understanding Target Market

Consumer analysis helps businesses identify and understand their target market . It provides insights into customer demographics, psychographics, behaviors, and preferences. This knowledge is essential for effective targeting and tailoring marketing strategies to reach the right audience.

2. Identifying Customer Needs

By conducting consumer analysis, businesses gain a deeper understanding of customer needs, pain points, and desires.

This knowledge allows them to develop products or services that address specific customer requirements, ultimately increasing customer satisfaction and loyalty.

3. Market Segmentation

Consumer analysis helps in segmenting the market based on shared characteristics and preferences.

This segmentation enables businesses to identify distinct customer groups and develop targeted marketing campaigns, resulting in more effective communication and higher conversion rates.

4. Competitive Advantage

Understanding consumer behavior and preferences provides businesses with a competitive advantage.

It allows them to differentiate their products or services from competitors, highlight unique value propositions, and position their offerings to meet specific customer needs. This differentiation helps in capturing market share and building a solid brand image.

5. Effective Marketing Strategies

Consumer analysis provides insights into customer decision-making processes, preferred channels of engagement, and factors influencing purchase decisions.

This knowledge helps businesses develop marketing strategies that resonate with their target audience, resulting in higher engagement, conversion rates, and return on investment for marketing efforts.

This article emphasizes the importance of consumer analysis in every business plan. It explains that consumer analysis involves examining the characteristics, behaviors, preferences, and needs of a target market or specific consumer group.

This analysis aims to gather insights that inform decisions related to product development, marketing strategies, pricing, distribution, and customer experience.

Moreover, we discussed five types of consumers that businesses should be aware of. Each type has distinct characteristics and motivations businesses can leverage to tailor their offerings.

Besides that, the article outlines a framework with key steps to conduct a consumer analysis. This article also provides an example of a consumer analysis of Generation Z that highlighted their shopping habits, preferences, and values.

Finally, this article emphasizes the importance of consumer analysis in a business plan. It states that consumer analysis helps businesses understand their target market, identify customer needs, segment the market, gain a competitive advantage, and develop effective business strategies .

Marketing91

What is Consumer Marketing? Definition, Strategies & Example

May 8, 2024 | By Hitesh Bhasin | Filed Under: Marketing

Table of Contents

Consumer marketing is about knowing what drives individuals to buy a product and then devising techniques that appeal to their emotions. It is a powerful way to reach potential customers , capture their attention, and encourage them to purchase. Consumer marketing initiatives involve producing engaging content, crafting appealing images, launching creative campaigns, and much more.

What is Consumer Marketing?

Consumer marketing refers to creating strategies and campaigns to target a specific group of customers. According to Think with Google Consumer Insights, over 40% of marketers use consumer research to inform choices and optimize conversions.

Consumer marketing strategies rely significantly on studying consumer data and social trends, such as customer loyalty and existing consumers, to develop effective campaigns that reach and engage their target audience. Consumer marketing methods can then be used to assess the success of these initiatives, such as their ability to recruit new customers or increase loyalty among existing customers.

Consumer brands must frequently alter their tactics to satisfy customers’ demands and expectations. A garment firm, for example, must keep up with fashion trends and alter its marketing life cycle accordingly. Consumer marketing tactics employ various tools to identify and reach target consumers and markets, including segmentation, customization, and targeting. Consumer marketing campaigns sell items or services through various media channels, including digital adverts, website content, social media platforms, email marketing, and more.

Key Takeaways

• A consumer marketing strategy involves understanding customer behavior and preferences and identifying target consumer markets.
• Researching your market to find valuable consumer data and creating content that resonates with your audience is essential.
• Develop strategies to reach your target audience and engage them with relevant content.
• Don’t forget to measure the success of your campaigns so you can make adjustments and achieve your desired outcomes.

Importance of consumer marketing

Consumer marketing is the most important part of a business ’s plan to grow and connect with its customers. Its importance must be balanced, especially considering how it brings in and keeps people. Here are some important reasons that show how important it is:

• Connecting with Customers: By getting to know your customers’ minds, you can understand what they want. This information is very helpful for making ads and messages that get people to take action, which builds a strong bond between your brand and its customers.
• Brand Differentiation and Leadership: In a crowded market, your brand’s unique qualities are revealed by how well you sell it to customers. Differentiation is about sticking out and becoming a thought leader that people consider their first choice.
• Fostering Brand Loyalty : The journey from a one-time buyer to a loyal advocate begins with consistent and empathetic consumer marketing. You build trust and a lasting relationship by ensuring your products and services match what your customers want and value.
• Increasing Sales and Profitability: Effective consumer marketing draws Prospective customers in. It can turn interest into purchases and one-time sales into repeat business , eventually boosting the bottom line .
• Long-term Business Growth : Steady growth is the aim of any enthusiastic entity. Engaging customers smartly not only gets you quick wins but it also sets you up for long-term growth and market dominance.

Consumer marketing is more than just a tool; it is a way of doing business that means getting to know, helping, and growing with your audience. Remember that your company does better when your customers do well.

What are the types of Consumers in Marketing?

In marketing, there are four types of consumers: loyal customers, Need-Based Customers, Impulse Shoppers, Bargain Hunters, and Wandering Consumers.

• Loyal Customers are those who have a strong relationship with the company and will consistently purchase their products.
• Need-Based Customers purchase something because they need it, like groceries or household items.
• Impulse Shoppers buy things on a whim without much thought or research beforehand, often based on an emotional response to an advertisement or product.
• Bargain Hunters look for sales and discounts, always trying to find ways to save money.
• Wandering Consumers are those who purchase a variety of products without any real loyalty or dedication to one company.

Technological changes and marketing strategies have greatly impacted consumer markets with the rise of mobile devices. To reach customers more effectively, consumer marketing strategies should now use digital advertising platforms such as social media sites, search engine optimization (SEO), and email campaigns.

Additionally, companies must ensure that their websites are user-friendly and mobile-friendly to capture the attention of potential customers. By understanding the various types of consumers and using effective marketing strategies, businesses can successfully reach their target audience and make more sales.

What is an Example of Consumer Marketing?

Mobile-optimized ads and content personalization are good examples of using a consumer marketing strategy to target and convert a consumer market successfully.

Example 1- Mobile Optimized Ads

In today’s tech-savvy world, many people rely on their mobile devices for day-to-day activities. As such, businesses must consider how their marketing strategies look on various phone sizes and platforms. You can create campaigns tailored to each system with mobile-optimized ads that are fun and interactive while delivering a brand’s message. This creates a better user experience and can create more effective customer relationships .

Example 2 – Content Personalization

As customers become more comfortable leaving data trails online, they expect the content created to be tailored according to their preferences. As such, many businesses have adopted content personalization strategies that use machine learning models to deliver personalized content. This can be done using the customer’s data, including purchase history, search behaviors, and other user-generated content and preferences. Businesses can create more meaningful relationships with their target audiences by delivering highly personalized content to customers.

What is The Difference Between Consumer Marketing and Business Marketing?

Consumer and business marketing are two distinct approaches to selling products or services. Consumer marketing focuses on targeting individual customers, while B2B marketing strategy is focused on reaching businesses as the end customer. Consumer marketers (B2C) create campaigns to attract loyal customers, increase customer loyalty, and convert prospects into buyers. Business marketers (B2B) use market research to develop a target audience of potential companies who may be interested in their products and services.

Consumer marketers often use digital marketing, social media, email marketing, and other creative approaches to engage with customers and build relationships. Consumer market campaigns are designed to reinforce positive brand messages while creating a sense of urgency that drives potential buyers to purchase the offered product or service. Business marketers usually have a more direct marketing approach and focus their marketing efforts on providing potential customers with detailed information about the product or service.

Overall, consumer and B2B marketing strategies differ in their target audience, strategy, and tactics. Consumer marketers use creative campaigns to engage individual customers, while business marketers often provide more factual data about the company’s products or services.

What Are Some Effective Consumer Marketing Strategies?

1. evaluate the fundamental requirements of consumers.

A consumer marketing campaign is a process that requires an understanding of consumer behavior , needs, and wants. Evaluating the fundamental requirements of consumers will help you create more targeted advertising campaigns that address their interests and provide them with value.

2. Develop customer-centric content

Consumer marketing is all about providing value to your customers – whether it’s through promotional offers, discounts, or informative content. Focus on creating customer-centric content that is tailored to their needs and interests.

3. Leverage personalized data

Utilize the insights gathered from customer engagement metrics, such as web traffic, to create targeted campaigns tailored to individual customers – based on preferences and behavior. Personalized data will help you design campaigns that are more effective and engaging in penetrating, connecting, and converting your consumer market.

4. Leverage influencers

Influencer marketing is an effective way to reach a wider audience. Establish relationships with influencers with a wide reach, especially in your target markets and those who specialize in your target industry.

5. Utilize digital marketing channels

The most effective way to reach and engage with customers nowadays is through digital channels, such as social media, websites, blogs, and mobile apps. Invest in the right digital tools that will help you effectively promote your products or services via business-to-consumer marketing.

6. Create surveys

Surveys are a great way to gain insights into customer behavior and preferences. Ask customers for feedback on your products or services so you can create campaigns that better resonate with them.

Consumer Marketing Tools

SEMrush is a comprehensive suite of marketing tools that provides complete visibility into an organization’s online presence. With powerful analytics and keyword research capabilities, marketers can gain insights into their competitors, identify campaign keywords, track website performance, and optimize content for search engine optimization (SEO).

Hootsuite is a social media management platform that helps organizations manage multiple social media accounts, schedule posts, and monitor their social media presence. With its robust analytics tools, marketers can measure campaign performance and track the effectiveness of content on social media strategy across different channels.

• Google Analytics

Google Analytics is a comprehensive tool for gaining insights into website traffic and user behavior. Marketers can use it to analyze user engagement, track conversions, and further optimize their website and customer experience .

Marketo is an automated marketing platform that helps marketers create personalized campaigns and content for their audiences. It provides powerful analytics tools to understand customer segmentation, target customers with relevant messages, measure marketing campaign and performance and improve ROI.

HubSpot is an all-in-one marketing platform that helps marketers create, manage and optimize campaigns. It includes tools for content creation, automation, tracking of leads, and analytics. Marketers can use this platform to create personalized and unique customer journeys, and reach their target audiences more effectively.

Which one between Data and Creativity will determine the future of Consumer Markets?

The answer to that question is a combination of both data and creativity . Data can provide businesses with valuable insights into consumer behavior , while creativity can help to craft engaging experiences and campaigns that reach customers in meaningful ways.

Businesses can leverage data and emotional elements to create effective strategies for connecting with customers on mobile devices and other platforms. Customer data is crucial in understanding customer demands and preferences, so gathering this information should be a major part of any company’s digital strategy.

At the same time, creativity is key in developing engagement strategies that resonate with customers. By blending data and creativity, businesses can create effective consumer marketing strategies to drive customer loyalty and success.

So, the future of consumer marketing will be driven by technology, especially AI and machine learning . Still, an effective marketing strategy must also be underpinned by creativity. Businesses can build strong consumer relationships that will stand the test of time by utilizing data and creativity. This way, they can ensure that their consumer markets remain loyal in the long term.

Consumer marketing is an important part of any business’s success. It involves various strategies to reach your target audience, such as brand sentiment analysis, customer relationships , and crafting effective marketing messages.

Understanding the different marketing strategies will help you create a strategy that will lead to better customer engagement and conversions. Ultimately, it’s about finding the right mix of tactics that meets your needs, budget, and overall goal. By taking the time to research and assess what kind of consumer marketing strategies are the best for you, you can develop a comprehensive plan to help your business grow and thrive.

In the end, we’d like to share some of the hacks that we use while targeting a consumer market –

Consumer Market Hacks that We Use at Marketing91!

• Use AI and machine learning to analyze customer data and optimize campaigns.
• Use customer feedback & insights to optimize your campaigns
• Focus on creating personalized experiences to maximize engagement.
• Utilize multiple channels when targeting your consumer markets.
• Invest in content marketing for better brand awareness and visibility.

Liked this post? Check out the complete series on Marketing

Related posts:

• What is Consumer-to-Business C2B? Complete Guide with Definition & Examples for 2023
• What is Consumer Behavior? Definition, Example, Types & Factors
• What are Consumer Goods? Definition, Types & Examples
• Consumer – Definition, Types and Research
• Channel Levels – Consumer and industrial marketing channels
• What is Direct-to-Consumer? DTC Marketing Model Explained
• The Influence of Culture on consumer behavior
• What is Consumer Buying Behavior? Types and Stages
• What is Business-to-Consumer (B2C)? A Complete Guide (Updated 2024)
• Consumer Decision Making Process

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Why Companies Are Nervous About the Consumer

On earnings calls, dozens of corporate executives have cited a slowdown in spending to explain why sales are slipping.

By Andrew Ross Sorkin ,  Ravi Mattu ,  Bernhard Warner ,  Sarah Kessler ,  Michael J. de la Merced ,  Lauren Hirsch and Ephrat Livni

The “stretched” consumer

Better than expected quarterly earnings have helped propel the S&P 500 to within a whisker of a record high on Friday. But Wall Street and Washington are closely monitoring another worrying economic indicator: the struggling consumer.

The split-screen view of the economy is becoming clearer as earnings season draws to a close. Mass-market brands, like the fast-food companies McDonald’s, KFC and Starbucks, have reported that a lot of customers are pulling back on spending as high inflation bites. But less price-sensitive sectors, such as airlines and hospitality, say customers are still booking flights, hotel rooms and tables at pricier restaurants.

The starkly different snapshots may explain why voters give President Biden poor marks for economic management, even as jobs are plentiful and growth is resilient . This is “an economy of the haves and have-nots,” Michael Reid, an economist for RBC Capital Markets, told DealBook. “The haves just have so much more spending power.”

What’s making “the haves” so flush: They tend to have little to no mortgage debt or car or student loans, and their stock-market-tied retirement accounts have accumulated healthy gains to finance vacations or nights out.

But the less-affluent are feeling the pinch. They’ve blown through their pandemic savings, and they’re racking up credit card and other loan debt. One area to watch : A surge in “buy now, pay later” programs may be masking America’s “phantom” consumer debt problem.

Company executives are increasingly warning about this cohort . On earnings calls this quarter, we’ve seen an uptick in the number of times C.E.O.s and C.F.O.s cite “low-income consumers” to explain why sales are slipping or why they give lackluster guidance on profit.

Here’s what they’re saying:

John Peyton, C.E.O. of Dine Brands Global, the parent of Applebee’s and IHOP restaurants, told analysts that lower-income consumers are “more aggressively managing their check, finding our value-oriented items.”

Ramon Laguarta, PepsiCo’s C.E.O., was more blunt. “The lower-income consumer in the U.S. is stretched,” he said, adding that this type of customer “is strategizing a lot to make their budgets get to the end of the month.”

Hal Lawton, C.E.O. of Tractor Supply Company, the farming retailer, sees something similar: “In the first quarter, our upper-income consumer over-indexed in big ticket categories and recreational purchases compared to our lower-income consumer, who is prioritizing their spend on needs.”

HERE’S WHAT’S HAPPENING

Israel hits out at President Biden’s threat to withhold more weapons. Prime Minister Benjamin Netanyahu said the country would “stand alone” if needed after the U.S. refused to send bombs that could be used in a major assault on the Gazan city of Rafah. The comments are the latest sign of a widening rift between Israel and the Biden administration over the war.

T-Mobile and Verizon are said to be in talks that would divvy up U.S. Cellular. The telecommunications giants are in discussions to split one of the country’s last big regional wireless carriers , with each getting a different part of the business, according to The Wall Street Journal. One scenario: T-Mobile’s U.S. arm would pay $2 billion for some operations and wireless spectrum licenses; Verizon is in talks on a separate deal with U.S. Cellular.

The White House is reportedly planning to impose tariffs on Chinese electric vehicles. The government could target some of China’s key strategic sectors including E.V., batteries and solar cell manufacturing as soon as next week, according to Bloomberg. Biden has called Chinese E.V.s a national security threat and has accused China of using unfair industrial policies to distort markets.

Apple apologizes for the iPad ad that spurred a big backlash. The tech giant said a 60-second spot that showed a giant machine crushing tools used by artists had “ missed the mark” and that it would not run on TV. The ad was slammed by actors, artists and designers, who said it was a metaphor for Big Tech destroying or co-opting their work.

How Biden and Trump are wooing business

President Biden is on a West Coast fund-raising tour, looking to extend his money lead over Donald Trump. The trip caps a week during which the president pitched his economic policies to business leaders to gain their support and reports emerged of some of Donald Trump’s promises to C.E.O.s to win their backing and donations.

Biden is heading to Silicon Valley and Seattle. Vinod Khosla, the venture capital investor, and Marissa Mayer, the former Yahoo C.E.O., will host two separate events on Friday, as first reported by Puck. Biden will then head to Seattle for a fund-raiser tomorrow.

The trip follows a push to gain business leaders’ support. Biden hosted seven C.E.O.s at the White House on Tuesday, including Citi’s Jane Fraser, the Evercore founder Roger Altman and the United Airlines boss Scott Kirby to talk geopolitics and economics.

Biden administration officials are ramping up outreach. Jeff Zients, Biden’s chief of staff, and others drew up a list of more than 100 C.E.O.s to contact (the White House hasn’t disclosed their names). The group of officials charged with smoothing relations with boardrooms — dubbed “The Hub” — includes Janet Yellen, the Treasury secretary; Lael Brainard, the director of the National Economic Council; and Gina Raimondo, the commerce secretary. “At the president and Jeff’s request, we’re strategically engaging with business leaders,” Wally Adeyemo, the deputy Treasury secretary, told DealBook.

Biden wants the C.E.O.s to help make his case. The administration is asking executives, including the former PayPal C.E.O. Dan Schulman, to call other business leaders for feedback that they might not give the president directly, a senior official said.

Many in big business haven’t been happy with his first term. Some executives are frustrated by Biden’s plans to raise taxes on the wealthy and companies. Business groups have sued Lina Khan’s F.T.C. for banning noncompete agreements and banks say that the Consumer Financial Protection Bureau under Rohit Chopra has gone “rogue” in applying his pro-consumer agenda.

Trump is promising business that he’ll roll back Biden-era rules. The Republican candidate told Big Oil executives last month that they should give $1 billion to his campaign because he would kill environmental rules that have hit the industry. He also has promised to extend the tax cuts he passed as president and said he would slash further if re-elected .

Fast-food executive charged in “sham” loan case

Federal prosecutors on Friday have charged Andrew Wiederhorn, chairman of Fat Brands, the parent of the fast-food chains Fatburger, Johnny Rockets and Hot Dog on a Stick, with orchestrating a series of “sham” payments that netted him $47 million.

Federal prosecutors accused Wiederhorn of concealing payments from the company to him between 2010 and 2021. They were categorized as “shareholder loans,” and made directly from the board, according to a grand jury indictment released on Friday. Wiederhorn “had no intention of repaying these sham ‘loans’,” the filing says. The charges include tax evasion, filing false tax returns, wire fraud and certifying faulty financial reports.

Wiederhorn has had previous run-ins with the law. Twenty years ago, he served a federal prison sentence on filing a false tax return and other charges associated with his running of Fog Cutter Capital, a holding company. His case drew national media attention, including in The Times , as Fog Cutter continued to pay his salary, a bonus and “leave of absence pay” while he served his 18-month sentence.

Wiederhorn founded Fat Brands in 2017. . In February, the publicly listed company informed shareholders that the S.E.C. was investigating Wiederhorn and two other unidentified associates in a possible criminal matter, but did not disclose details. At the time, the company said it was cooperating with the authorities.

The case was filed in the U.S. District Court for the Central District of California. The other defendants named in Friday’s indictment are William Amon, Rebecca Hershinger and the Fat Brands company.

“There is no law that says that the Fed moves first.”

— Andrew Bailey , the Bank of England governor, has signaled that the central bank could cut interest rates as soon as this summer — potentially ahead of the Fed. Meanwhile, first-quarter G.D.P. data released on Friday showed the British economy had emerged from recession .

A not-so-sweet cocoa rally

Cocoa prices have been on a roller-coaster ride this year , leaving some of the biggest food companies in the world unsure of how to price their chocolate. The market volatility began with a disappointing 2023 cocoa crop. The commodity price more than tripled in a matter of months, reaching a record of more than $11,000 per ton in mid-April.

What will this mean for chocolate lovers? Mondelez, the makers of Chips Ahoy cookies and Cadbury chocolates, raised prices by about 6 percent in the first quarter, and Hershey did so by about 5 percent. Both companies said they wouldn’t rule out further price increases if cocoa prices stay high.

THE SPEED READ

Todd Boehly’s investment firm is said to be in advanced talks to buy Hayfin Capital Management to extend its reach in European private credit. (FT)

The investment firms that took Calpine private are reportedly weighing a sale of the power plant company, taking it public or selling a stake at a valuation of roughly $30 billion . (Reuters)

A federal jury found a finance executive guilty of securities fraud in an insider trading case involving Donald Trump’s social media company. (NYT)

How Eric Schmidt, Google’s former C.E.O., has emerged as a top A.I. matchmaker in Washington. (Politico)

Best of the rest

A chat with Sam Bankman-Fried in prison. (Puck)

Shares in Bill Ackman’s investment firm have soared since he became an outspoken campaigner after the Oct. 7 attacks in Israel.

Elsewhere, Ackman reportedly got an earful from Wall Street executives at this week’s Milken Institute Global Conference for his attacks on corporate diversity policies. (Semafor, Bloomberg)

Why did Miss USA and Miss Teen USA resign within days of each other? (WSJ)

We’d like your feedback! Please email thoughts and suggestions to [email protected] .

Andrew Ross Sorkin is a columnist and the founder and editor at large of DealBook. He is a co-anchor of CNBC’s "Squawk Box" and the author of “Too Big to Fail.” He is also a co-creator of the Showtime drama series "Billions." More about Andrew Ross Sorkin

Ravi Mattu is the managing editor of DealBook, based in London. He joined The New York Times in 2022 from the Financial Times, where he held a number of senior roles in Hong Kong and London. More about Ravi Mattu

Bernhard Warner is a senior editor for DealBook, a newsletter from The Times, covering business trends, the economy and the markets. More about Bernhard Warner

Sarah Kessler is an editor for the DealBook newsletter and writes features on business and how workplaces are changing. More about Sarah Kessler

Michael de la Merced joined The Times as a reporter in 2006, covering Wall Street and finance. Among his main coverage areas are mergers and acquisitions, bankruptcies and the private equity industry. More about Michael J. de la Merced

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch

Ephrat Livni reports from Washington on the intersection of business and policy for DealBook. Previously, she was a senior reporter at Quartz, covering law and politics, and has practiced law in the public and private sectors.   More about Ephrat Livni

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Americans Aren't Happy With The Economy, But They Spend Like They're Doing Just Fine

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What does that distinction mean for Democrats' political fortunes come November? Will the 2024 look more like the 2022 midterm elections, where voters backed Democrats despite a struggling economy? Or is it 1980, when inflation and an unpopular Democratic president led to a surge in Republican power?

This podcast was produced by Jeongyoon Han, Casey Morell and Kelli Wessinger. Our editor is Eric McDaniel. Our executive producer is Muthoni Muturi. Listen to every episode of the NPR Politics Podcast sponsor-free, unlock access to bonus episodes with more from the NPR Politics team, and support public media when you sign up for The NPR Politics Podcast+ at plus.npr.org/politics .

6 misleading food label terms and what they really mean

How to understand claims like ‘no cholesterol’ and ‘gluten free’ on products

Consumer Reports has no financial relationship with any advertisers on this site.

When it comes to filling your grocery cart with the healthiest foods, careful label reading is critical. Yet even the savviest shoppers can be confused by some of the claims found on the front of food packages. And that is intentional. “If the marketing is done well, it slips through the radar of critical thinking,” says Marion Nestle, professor of nutrition and food studies at New York University. “It’s designed to make you think emotionally, and before you know it, you’ve picked up a box of junk masquerading as health food.”

Some of the terms on the front of food packages aren’t regulated by the Food and Drug Administration, which oversees nutrition and health labels and claims . “Manufacturers use colorful images, product names and claims that give the food a ‘health halo,’” says Amy Keating, a Consumer Reports nutritionist. “In some cases, the claims are factually true but still can be quite misleading.” Here are some claims experts say to ignore:

No cholesterol

Cholesterol is found only in animal products. Seeing “no cholesterol” on a plant-based food (like peanut butter or vegetable oil, which would never contain cholesterol) is stating the obvious, but it’s there to make you think it’s healthier than a similar product that doesn’t proclaim it.

Made with real vegetables or fruit

The ingredients listed below the Nutrition Facts panel are in order of weight, says Nestle. “The first few are the only ones that really count, and if the ingredient is below the first five, there’s probably not much of it in the product.”

For example, the packaging for Simply Lay’s Veggie Poppables states they are “made with real veggies,” but the only “vegetables” in them are spinach and tomato powders — listed 10th and 11th in the ingredients list. Welch’s Fruit Snacks correctly state that “fruit is our 1st ingredient,” but second and third in line are corn syrup and sugar, effectively negating any real benefits from the fruit.

Lightly sweet

This suggests that a product would have very little sugar, but that’s not always the case. For example, a cup of Morning Summit cereal, labeled “lightly sweetened,” has 14 grams of added sugars. (The American Heart Association recommends no more than 36 grams of added sugar a day for men and 25 grams for women.) And “slightly sweet” Gold Peak iced tea has 16 grams of added sugars in 12 ounces. The terms that the FDA has definitions for are “sugar free” (contains less than 0.5 grams sugars), “reduced sugar” (contains at least 25 percent less sugar than a comparable product), and “no added sugars” (no sugar or sugar-containing ingredient is added to the food).

Ketogenic foods contain little or no carbs or added sugars, but that doesn’t automatically make them healthy. “Cereals, bars or cookies that say ‘keto’ on the package are often ultra-processed, a category of foods that are made with industrial ingredients,” says Nestle, such as isolated proteins and sugar alcohols. The latter don’t have calories or raise blood sugar, but “they are manufactured sweeteners, and questions have been raised about how safe they are,” she says.

Gluten free

Unless you have celiac disease or a gluten sensitivity, there’s no health reason to avoid gluten. In fact, some gluten-free versions of breads, pasta and tortillas can be a less healthy choice. They may be lower in fiber than whole-grain products (Toufayan Bakeries Gluten Free Tortilla Wraps, for example, have zero grams of fiber) and can contain gums and other additives that push them into the ultra-processed food category.

Cured deli meats and hot dogs are preserved with synthetic nitrates and nitrites, which research has found may raise the risk of some cancers. But all “uncured” means is that the meat is preserved with celery seed powder or another natural source of nitrates and nitrites. “Uncured meats aren’t better for you,” Keating says, “because synthetic and natural nitrates and nitrites have the same effects on the body.”

Copyright 2024, Consumer Reports Inc.

Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer and healthier world. CR does not endorse products or services, and does not accept advertising. Read more at ConsumerReports.org .

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What a Ban on Noncompete Agreements Would Mean for You

Here’s how the FTC’s ban on noncompete agreements could affect you as an employee.

How a Ban on Noncompetes Affects You

Key Takeaways

• Noncompete agreements are legal contracts that bar employees from working for a competitor or starting a competing company for a certain period.
• The FTC's ban on noncompetes is set to take effect in September, but legal challenges could delay or derail the implementation.
• If you've signed a noncompete agreement with your company, review your contract and qualifications.

Getty Images | iStockphoto

The Federal Trade Commission's ban on noncompete agreements could increase mobility for workers nationwide, eliminating contractual barriers that bar employees from seeking new job opportunities or starting competing companies for a prescribed time period.

The rule, which the FTC approved on April 23, is sure to be challenged in court. Still, it pays to know how this potential ban could affect you.

What Are Noncompete Agreements?

Noncompete agreements, also known as restrictive covenants or noncompetition agreements, are clauses in employment contracts that restrict employees from engaging in certain competitive activities such as working for a competitor or starting a competing business for a specified period of time after leaving their current employer.

A noncompete clause is usually part of an employment contract but can sometimes be a standalone contract. Depending on the company, a worker may enter into a noncompete contract at the beginning, during or end of employment.

According to the U.S. Government Accountability Office’s 2022 nongeneralizable survey of private sector employers, 55% of nearly 450 responding employers reported having NCAs for at least some of their workers.

Employers use NCAs to protect their intellectual property, proprietary information and trade secrets. They may also use it to maintain their competitive advantage. You can typically find NCAs in industries like financial services , manufacturing , information technology and corporate management.

When Will the Ban on Noncompete Agreements Take Effect?

It's unclear if and when the ban will go into effect. The rule becomes effective 120 days after publication on Sept. 4, but Lauren Aydinliyim, assistant professor of strategic management at Baruch College and former lawyer specializing in employee noncompete agreements, said it’s likely the enforcement date will, at a minimum, be delayed.

"The noncompete ban has generated considerable controversy and legal challenges,” she wrote in an email. “Already, at least three lawsuits have been filed opposing the final rule. The outcome of these legal challenges could have a substantial impact on the ban's implementation and the FTC's ability to enforce it.”

Lauren Winans, chief executive officer and principal HR consultant for Next Level Benefits, agrees. “The likelihood of this rule becoming effective faces significant uncertainty due to expected legal challenges. Some experts even anticipate that the rule may ultimately fail in courts due to questions about the FTC's authority to impose such a sweeping regulation,” she said in an email.

What a Ban on Noncompetes Could Mean for You

A ban on noncompete agreements may give employees more freedom to pursue new jobs, start businesses or bring new ideas to market without the fear of legal repercussions. But there may be potential downsides, wrote Daniel Space, senior HR business partner director and HR content creator at DanFromHR, in an email.

“I think there will be a great deal placed on being far more cautious about hiring within the industry. For example, if you have eight years of experience working at three companies in the same industry, you’re considered really valuable now. But if the ban passes, a company may consider you as a higher-risk hire since your past experience might pose a threat in terms of competition or knowledge transfer,” Space said.

Winans said the ban on noncompetes could result in better workplace cultures and more attractive compensation packages. “Businesses will need to reevaluate how they attract and hire talent, focusing more on creating attractive working conditions and offering competitive salaries to retain employees, as they would no longer be able to rely on noncompete clauses to prevent employee turnover,” she explained.

What to Do If You Signed an NCA at Your Company

Take these steps to understand your rights if you’re bound by a noncompete agreement at your current company.

• Review contractual provisions . Review the terms of your noncompete agreement to understand its scope, duration and geographic limitations. “Besides reviewing your NCA, also take a look at severance agreements , forfeiture-for-competition provisions, nondisclosure agreements and training agreements, as these may operate similarly to noncompetes under the rule,” Aydinliyim said. 
• Determine whether you qualify as a senior executive. While waiting for updates regarding the ban, Aydinliyim recommends checking to see if you qualify as a senior executive under the rule. “Existing noncompetes for senior executives (employees with income over $151,164 and have the final authority to make policy decisions) can remain in force under the FTC’s final rule. However, the FTC expects that only 1% of the workforce will meet this definition,” she said.
• Consult an employment attorney. If you want advice that’s tailored to your situation and the laws in your state, consider talking to an employment attorney who specializes in noncompete agreements.

Navigating the Uncertainties

As developments regarding the FTC ruling unfold, it’s important to stay informed. “Ultimately, the FTC ruling is very early, and only time will tell whether it sticks and how employers and employees alike should approach the change," said Gigio Ninan, CEO and co-founder of Shankar Ninan & Co., a law firm that provides legal services to small and medium-sized businesses. "There will be a ton of litigation surrounding this change, and state law will likely continue to also govern contract law and restrictive covenants generally.”

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Landlines may be saved in California - for now. What this means for consumers nationwide

California utility regulators are proposing rejecting a request by AT&T to eliminate its responsibility to provide traditional landline phone service. That could have implications nationwide, a consumer advocate said.

Fewer telephone companies are offering basic landline phone service as the utilities say the copper-wire infrastructure is old and expensive to maintain and demand for landline phone service is low as consumers move to mobile and other services.

But consumer advocates nationwide have cried foul, saying basic landline service is important for the country's most vulnerable, including senior citizens who don't want to rely on cell service, consumers who can't afford cellular service and those in rural areas that may not have good access to cell or broadband internet services.

What happened in California?

Earlier this year, the California Public Utilities Commission opened public comments on an application by AT&T to waive its responsibilities to be what’s called “Carrier of Last Resort” (COLR), meaning the utility has to offer the copper-wire landline service. 

The utility and many of its peers have been petitioning state utility commissions and legislators, asking to be relieved of the task.

On Friday, Administrative Law Judge Thomas J. Glegola wrote a decision proposing that the Caifornia commission reject AT&T's waiver. The proposal will be voted on by the commission at its June 20 meeting. The judge also proposed that the commission look at the rules outlining the carrier of last resort service obligations.

In a press release announcing the upcoming vote, the commission said public response to AT&T's request "was extensive with over 5,000 public comments received into the record and eight Public Forums held in-person in three cities and virtually across the state, drawing more than 5,800 attendees."

The proposed rejection "underscores the critical importance of ensuring universal access to essential telecommunications services for all Californians," the commission said in its statement. "As the designated COLR, AT&T plays a pivotal role in providing reliable telephone service to communities across the state."

The commission added that while the communications company said mobile wireless and other services could fill the void, "the CPUC found AT&T did not meet the requirements for COLR withdrawal. Specifically, AT&T failed to demonstrate the availability of replacement providers willing and able to serve as COLR, nor did AT&T prove that alternative providers met the COLR definition."

Public commenters also highlighted the unreliability of voice alternatives such as cell service or Voice Over Internet Protocol services (VoIp) which are internet phone providers, the commission said.

What is AT&T's response?

AT&T in a statement said it was disappointed in the proposed rejection. Competition for other more reliable phone alternatives is robust, said Marc Blakeman, president of AT&T California. Blakeman said there are less than 5% of households in California that AT&T serves who still use copper-based landline phone service.

“We are disappointed by the CPUC’s proposed dismissal of our application for relief from Carrier of Last Resort (COLR) regulation, as we’d hoped the commission would allow us the opportunity to demonstrate why the number of options for voice service available to customers make the COLR obligation unnecessary," Blakeman said.

Not surprisingly, Blakeman said, no providers were interested in bidding on the carrier of last resort service "with a declining number of customers given the competitive options available in today’s marketplace. We remain committed to keeping our customers connected to voice service and will continue working with state leaders on policies that allow us to bring modern communications to Californians.”

AT&T made the request in California for a waiver and has also lobbied successfully for legislative reform in 20 other states, which eliminated the utility’s requirement to provide traditional landline service.  

Blakeman said during climate disasters, when staying connected is essential, AT&T's fiber network is more reliable "than our outdated copper network" and that old copper cables take significantly longer to repair following weather events, in some cases taking weeks to dry due to damage from extensive rain and flooding.

Consumer advocates point to the need for electricity for most alternatives to traditional landlines and note that when there is no electricity, consumers can still use their landlines.

Is the proposed rejection expected to pass?

While the rejection is a proposal and still needs to be approved by the commission, Regina Costa, telecommunications policy director for The Utility Reform Network (TURN) in California, said she fully expects the board to approve it.

“What AT&T really wants is to stop providing essential telecom service to 99% of its service area, without providing a shred of evidence that there are real alternatives. This includes many areas threatened by wildfires, earthquakes, floods and power shutoffs," Costa said in a press release. "If AT&T gets its wish, it would significantly jeopardize public safety."

In an interview with USA TODAY, Costa, who is also chair of the telecommunications committee for the National Association of State Utility Consumer Advocates, said California's proposed rejection of the landline waiver is on top of a recent rejection in Utah for another utility to waive its obligation to provide landlines.

"I think it's very important for consumers nationwide,'' Costa said. "I think that would give other states the impetus to look at the same thing."

Loss of landlines? Phone companies want to eliminate traditional landlines. What's at stake and who loses?

When deregulation took place in telecom, the assumption was there would be lots of alternatives to landlines, she said.

"I think California and Utah are stepping up to the plate and saying no, we need to think about this carefully,'' she said. "We need to make sure that all of our people have service. How do you let the largest carrier in a state walk out the door and the markets that they want to abandon are the ones that are most at risk?"

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher . Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.

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Prescription Drug Scarcities Leave Consumers With Few Options

By terri dee indiana news service.

INDIANAPOLIS — Supply chain disruptions mean consumers who need prescriptions filled in Indiana and around the country are running into roadblocks.

Parents and caregivers have limited options, as the availability of generic medications is running low. There are several causes, inoperable manufacturing plants cause production delays and back orders pile up. A key pharmaceutical ingredient needed to make a certain medicine has been discontinued, causing additional problems.

Butler University Assistant Professor of Pharmacy Practice at Veronica Vernon called the situation dire.

“We’re seeing one of the worst cases of prescription drug shortages that we’ve seen in recent years,” Vernon observed. “Unfortunately, this is a cause for concern because you go to the pharmacy and expect them to have the medication in stock, and they don’t.”

Vernon acknowledged pharmacists cannot guarantee patients when a certain medication will be delivered. She advised parents and caregivers to schedule refills up to two weeks in advance to make sure they will be ready on time, if the pharmacy can even get the medication.

According to Singlecare.com, atorvastatin, sold under the brand name Lipitor, was the most prescribed drug in Indiana last year. It’s used to lower cholesterol.

The shortages affect both brand name and generic drugs. Vernon suggested keeping good lines of communication open with your pharmacist and asking if there are any negative health risks tied to taking a generic, if one is available.

“One of the most important things you can do is to always keep a list of your current medications with you,” Vernon recommended. “And also keep a record of what you’ve tried in the past. When my patients experience a shortage, I’ll say let’s try this other medication that’s in the same class is expected to have the same effect. Have you tried that before?”

Statista.com estimated the total market for generic drugs worldwide was estimated at $412 billion in 2022 and the figure is expected to increase to more than $600 billion by 2030.

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