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Unlock This CourseEvery business needs customers, but not all customers are the same! Understanding the different types of customers helps businesses create better products and services that people actually want to buy.
Key Definitions:
These are everyday people like you and your family who buy products for personal use. They make decisions based on emotions, convenience, price and personal preferences.
Examples: Shoppers at Tesco, customers buying clothes at Primark, people ordering from Deliveroo.
These are businesses that buy from other businesses. Their decisions are usually more logical and involve multiple people. They focus on value, reliability and long-term relationships.
Examples: A restaurant buying ingredients from suppliers, an office purchasing computers, a factory ordering raw materials.
Even within the consumer market, there are different types of customers with unique behaviours:
These customers regularly buy from your business and are less price-sensitive. They're your biggest fans!
Example: Someone who always buys Apple products or only shops at Sainsbury's.
These customers are primarily motivated by getting the best deal and will switch between brands to save money.
Example: People who use comparison websites or wait for sales before buying.
These customers make unplanned purchases based on emotions or immediate desires rather than careful consideration.
Example: Someone who buys chocolate at the checkout or adds extra items to their online basket just before paying.
Business customers also come in different forms:
These businesses buy raw materials or components to make their own products.
Example: A car manufacturer buying steel, rubber and electronics.
These businesses buy products to sell them on to other businesses or consumers.
Example: Wholesalers, retailers and distributors like Argos or Amazon.
Public sector organisations that purchase goods and services, often through formal tender processes.
Example: Schools buying textbooks, hospitals purchasing medical equipment.
Different customers have different ideas about what makes a product or service "good quality". Understanding these expectations is crucial for businesses to succeed.
Quality refers to how well a product or service meets or exceeds customer expectations. It's not just about being "fancy" or "expensive" - it's about being fit for purpose and delivering what was promised.
Meeting quality expectations leads to customer satisfaction, repeat business and positive word-of-mouth. Poor quality leads to returns, complaints and damaged reputation.
Quality has several dimensions that customers might care about:
How well the product does its main job.
Example: How well a vacuum cleaner picks up dirt.
How consistently the product works without failing.
Example: A car that starts every time without problems.
How long the product lasts before needing replacement.
Example: A pair of shoes that doesn't wear out quickly.
Additional functions beyond the basic purpose.
Example: A phone with a good camera and lots of apps.
How well customers are treated before, during and after purchase.
Example: Helpful staff and easy returns policy.
How the product looks, feels, sounds, or smells.
Example: A sleek, modern design for a laptop.
Different customer types often have different quality expectations. Smart businesses understand this and adapt their offerings accordingly.
ASOS is an online fashion retailer that has successfully identified different customer segments and their quality expectations:
By understanding different customer types and their expectations, ASOS can target multiple segments with tailored offerings while maintaining appropriate quality standards for each.
Smart businesses don't just guess what quality means to their customers - they actively find out and then work to deliver it.
Understanding different customer types and their quality expectations is essential for successful market segmentation and targeting. By identifying who your customers are and what they value, you can:
Remember: Quality doesn't always mean "the best" or "the most expensive" - it means meeting or exceeding what your specific customers expect and value.