Without customers your Business will be nowhere. If you understand your clients, you will win and get product feedback and you can modify easily. Also, you can prepare the products according to ongoing trends and your pre and post selling service well be better.
Types of Customers :
1. Lookers
They only view your products and enquire about price, but yet to decide if they really want to buy from you.
2. Necessary Buyers
When they need any product they will buy it, they can buy from anywhere according to their needs & not necessarily from you.
3. Discount Customers
This type of buyers only buys when they get the product less than the usual price. They want the best deal possible for your product & if handled properly, they can give boost to the sale.
4. Impulsive customers
This type of buyers can decide to buy products impulsively at any second and best way to handle them is to create urgency.
5. Loyal Customers
They are Brand specific; they give publicity through word of mouth and they provide Healthy Feedback as well as trust you.
Customer Acquisition
Customer Acquisition is bringing new customers to your business. For customer acquisition you need to go for social media marketing, you need rewards points system, loyalty program, gifts.
Customer Retention
Customer Retention is the rate at which customers stay with the business.This is less expensive. You can easily sell the things to your existing customers. You can increase upselling and cross selling, but you have to build strong trust among your loyal customers.
How to calculate Customer Retention Rate?
Clients in Beginning of Month: B
Client in end of month: E
Customer Retention rate: (E-N)/B) *100
Like B-100, E -110, N-20
Customer Retention Rates: ((110-20)/100) *100 = 90%
Customer Churn:
Customer churn rate is defined as the rate at which customers stop doing business with your brand. The higher your churn rate, the more customers you lose. A lower churn rate means more customers you keep on your books.
How customer churn will happen:
1.If customer cancels the subscription
2. Will close the account
3. Will not renew the contract
4. Stop product buying from your Brand
How to make a customer a loyal one?
1. Provide Excellent Customer Service
2. Have a Loyalty Program
3. Ask for Feedback
4. Provide Discount and Free gifts
Case studies: Physics Wallah
The unicorn ed-tech start up gained large customer base during the covid pandemic through experienced and quality coaching online, thus winning the students’ trust. Then word of mouth publicity helped them to scale rapidly & today they enjoy the status of a unicorn. PW retained the customer base by making the students believe that they are not alone and PW always supports them to clear these big exams.
