Customer Psychology 101

Approaching various customers with the same marketing strategy is inefficient and ineffective since each has different characteristics and needs. A better marketing strategy is to sort customers into groups whose members share similar characteristics and to try to reach them by using the most suitable marketing tactics.Customer psychology

Separate Tactics for Different Groups

There are four different types of customer: prospects, casual visitors, purchase customers, and repeat customers. The goal of any businesses is to turn the first three types into repeat customers. Repeat customers spend more on purchases but cost less to maintain, and they are very valuable for their Customer Lifetime Value. The four types of customers have different psychological characteristics. Being aware of customer psychology and satisfying each group’s needs will help your business grow faster.

4 Types of Customers

  • Prospects are the ones who are unaware of your business, and their characteristic is “easily distractible.” Prospects are not aware of their latent needs and therefore they don’t conduct an online search to satisfy those needs. Although some of them might conduct a search, they search with keywords that are related to your business but not close enough to find your website.
  • Casual visitors are the ones who wander into your website, and their characteristic is “impatient.” They visit websites after conducting a search or seeing an ad, but they leave the sites immediately when they think they did not find what they expected.
  • Purchase customers are the ones who have made a purchase, and their characteristic is “forgetful.” Since it only takes seconds to find products online, they can easily forget where they found the products and made the purchase.
  • Repeat customers Repeat Customersare the ones who have made more than two purchases, and their characteristic is “flirtatious.” Even if your company has been their favorite, they can compare other companies’ products to yours and try them out with no hassle. They can switch over if they like your competitor’s products more than yours.


The Effective Approach to Each Type

To reach those different types of customers, you have to arm yourself with proper marketing tactics. When customers’ characteristics are made clear, planning winning strategies goes much more smoothly.

  • To approach prospects, try to make their needs apparent to them so they start considering a purchase. For example, if you sell health-related products, you can ask your customers whether they have been tired lately so that they start paying attention to their health condition.
  • To make casual visitors stay longer on your website, make the site easy to find and catchy. Since impatient casual visitors only spend a few seconds to judge websites. Adding contents that capture their interest quickly and features to help them navigate through the site are important.
  • To get closer to purchase customers, follow up on their first purchase to remind them about your business. While it is easy for customers to search products online, it is harder for them to remember many companies. Periodic newsletters and emails are useful for maintaining good relationships with them.
  • To maintain repeat customers, continue attracting them by keeping your products fresh and relevant. Repeat customers have already tried some products and they lose interest when they feel they have got into a rut. Informing them about new offerings, promotions, and your products’ strengths builds top-of-mind awareness in them.


Maximizing Potential ROI

When your customers turn into repeat customers, the customers ROI becomes greater than when you deal with one-time customers for numerous times. Understanding the characteristics of each group of customers and approaching them in the most feasible manner are the keys to your success in customer relationships.

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Posted on by Kitty in Marketing

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