What Type of Customers Do You Have?
REAP Regional Marketing Seminar provided valuable information for small businesses, including defining three different types of customers and what they do for your business
Business owners from Ainsworth to Roca, Hastings to Wahoo, as well as Butler County businesses took advantage of the opportunity to network and gain marketing information at the Regional Small Business training session in David City on April 22, 2006.
Marketing Consultant Gene McCoy, Ord, presented information on the 4 Ps of Marketing and additional insights he has discovered in his years of working with small businesses.
Mr. McCoy described three types of customers: Transactional, Relational, and Experiential. It is helpful to identify which customers fit each category. Every business has customers of each type, but it’s important to understand their needs and how your business can meet their needs to sell more of your product or service.
>> Transactional customers
Most marketing efforts are directed at Transactional Customers, those interested in today’s transaction, price oriented, and looking for the “best deal.” There often appears to be high “traffic counts” but many times low sales conversion rates. By identifying the Relational and Experiential Customers, marketing efforts can target them and a business can experience a greater sales conversion rate.
>> Relational customers
Relational customers fear making a poor choice. They do not enjoy shopping and negotiating. Once they’ve developed a trusting relationship, they will be loyal customers. Today’s transaction is one in a series of transactions.
>> Experiential customers
Experiential customers are looking for an experience when they shop. The experience may be more important than the product or service. Their purchase makes a Personal Statement about them. They are looking for shared values, a common bond as they shop.
>> Customer relationships
Customer Relationship Management (CRM) is replacing “Branding” as the current buzzword. CRM is a mix of database marketing and customer service. It’s important to keep track of your customers and various data about them in an easily accessible format. That information can be used in directly marketing to individual customers to meet their individualized needs. Superior Customer Service is always a prerequisite for any other efforts.
Mr. McCoy presented some interesting information about the senses and advertising efforts. Hearing is more primary than seeing. Humans remember information they hear more readily than what they see. Marketing efforts and advertising techniques that take that into consideration may see a greater response.
Participating business owners took advantage of the opportunity to network before and during the session.
Thanks to the Butler County (ECSBN) and York County (CREN) REAP associations and to David City HomeTown Competitiveness (HTC) for helping REAP put on this event.