The favorite customer is the one who produces the most revenue while requiring the least amount of care. It is a win-win situation if the majority of customers could look like this. So here are 12 characteristics or C’s to help the entrepreneur recognize and appreciate this target customer.
Firstly, understand their demographics (age, sex, race, status, etc.). Are they individual consumers or companies (type)? Where are they geographically (distance, urban/suburban, rural)? And what are their psycho-graphics (lifestyle choices, attitudes and behaviors that influence buying habits)? And lastly, their quantity or how many are they?.
Does the favorite customer belong to a unique group of customers who share similar characteristics. Women shop differently than men, weekday shoppers buy differently that weekend shoppers. Also, different ethnic groups tend to have different product preferences (Latinos and Caucasians are attracted to different colors).
The favorite customer uses certain key words and phrases to describe their business problem. They think that the company’s product or service will relieve that pain in a specific way. When communicating with them this is the language to be used.
The company needs to know the specific problem the target customer is trying to address and which of the products can solve this problem. The company also needs to know what product mix they need and exactly how the product or service will make their pain disappear.
Is the product or service essential or is it optional? Can it be considered a luxury item? This helps determine how much they will spend on the purchase.
5. Cost Value
What are the factors that influence the decision to buy: price, quality, warranty, service, color, size, weight? Are discounts and terms important to them?
Is the buyer the same as the user? Who controls the decision and how many level of approval does the purchase have to go through? How long will it take to get a decision?
Is their buying period tied to a season or a specific time of the month or week. How often will they buy the item? How often will they be using the goods/services they buy? This helps the identification of repeat buyers and the understaning of their buying frequency.
Do the customers pay in cash or by credit card. Will they want to pay in installments and will they want to put advances on a purchase and have the item placed on hold.
There needs to be employees responsible for regular customer contact because the customers need follow up servicing.
How do they compare the company’s products to the competitors’? Do they consider the company’s products unique and not available elsewhere. Do the products fit the customers’ model for fitness and use.
The favorite customer is generally willing to corroborate the exceptional value of a company’s product.
It is necessary to commend these special customers on their loyalty and value to the company.. They need to know that they are a special subset of your customer base.