In the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers.
Most of us are obsessed with making sure our advertising, displays, and pricing all “scream out” to attract new customers.
This focus on pursuing new customers is certainly prudent and necessary, but, at the samehttps://npfinancials.com.au/
time, it can wind up hurting us.
Therefore, our focus really should be on the 20% of our clients who currently are our best customers.
In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity.
To better understand the rationale behind this theory and to face the challenge, we need to break down shoppers into five main types:
• Loyal Customers:
They represent no more than 20% of our customer base, but make up more than 50% of our sales.
• Discount Customers:
They shop our stores frequently, but make their decisions based on the size of our markdowns.
• Impulse Customers:
They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim.
They will purchase what seems good at the time.
• Need-Based Customers:
They have a specific intention to buy a particular type of it