Here’s Why You Need to Know These 3 Customer Types

Customer Loyalty Profiling for Business Growth

Not all customers are equal. Some customers will be a lot more loyal and lot more profitable than others and have a far bigger impact on your business growth.

The key for any business is to turn the few into many by understanding and managing your customer loyalty profile. By using loyalty as the benchmark that breaks down your customer profile, you can place your customers down into three categories:

• Promoter
• Passive
• Detractors

Let me outline why this is so important for you to know:

Promoters

Promoters define customer loyalty. They love your brand and what it does for them in their life. It becomes an expression of their personal identity and is very important to them.

You create this type of customers loyalty when you exceed their expectations and keep on impressing them. You listen to them and take action on what they need from you. You grow and evolve through them, their needs and desires.

They love you for this and is why they account for 80 to 90% of your positive word-of-mouth.

Promoters are a lot more profitable. They buy more products from you; they stay around longer; and are a lot more forgiving when you make a mistake than other the customer types.

They form a community around you and your brands. They tell their friends about you; they resolve your problem when another customer has a problem; and they stand up for you when you’re being criticised.

The only problem with this type of customer is that they are in the minority amongst your customer base. The easiest way to get more of this type of customers is to convert your passive and hecklers customer into raving fans.

Detractors

As the name so aptly describes, this type of customers spread any to 90% of your negative word-of-mouth. There is very little customer loyalty and they have the potential to destroy your business.

A detractor is created when the buying experience did not meet up to their expectations. They are unhappy and frustrated with how they are treated; the customer service levels; or your product did not meet expectations.

This unhappiness about is a direct reflection of how you’re doing business. You have the ability to manage a Heckler’s expectations. Often all that is required is your ability to listen and take the correct action.

But as you know this easier said than done and that’s why we have built our customer loyalty model.

Detractors

Indifferent customers are just satisfied. They are not happy nor are they sad. All they are doing is waiting until something better comes along and then they’ll jump ship.

Being satisfied in today’s market environment is not enough. You need to excite your customers. It is the most cost-effective way of building your business. You just need to know what buttons to press.

What is your customer loyalty profile?

Research shows that promoters are twice as profitable as detractors.  That means without increasing your customer base you can increase your profitability by understanding your customer loyalty profile.

The best way to do this is to use the Net Promoter Model®.