Your customer base is more than just a list of transactions. It’s a reflection of who values what you offer.
In this article, you’ll find out about the five main types of customer base and get practical strategies for building your own. Keep reading to find out how to turn one-time buyers into loyal supporters.
What is a Customer Base?
Your customer base is the key group of clients or consumers who consistently buy your product or subscribe to your service. Think of them as the foundation of the building that is your business. Those loyal customers who return time and again.
Building and understanding your customer base requires a customer 360 approach. That means gathering data so you fully understand their behavior and preferences.
5 Types of Customer Bases
Remember, your customer base isn’t just a group of people who buy your products. Instead, think of it as a mix of different types of buyers with different levels of loyalty. Here’s a breakdown of the five most common types of customer bases.
1. Loyal Customer Base
These are your most valuable customers. Your ideal customers. Those amazing customers who always choose your brand over competitors and even act as brand advocates. They’re not just making regular purchases: they’ll also refer family and friends, leave you glowing reviews and engage with your brand on multiple channels.
Building and maintaining your loyal customer base isn’t easy. You’ll need to deliver consistent value and the very best experiences over time. Never forget about your loyal base — it always needs to be nurtured.
2. Need-Based Customer Base
This group of customers purchases from you when they have a specific need. Their engagement is more transactional. They’ll come to you intermittently, and are not fully committed to your brand.
For example, a needs-based customer could be a client who buys your product during a seasonal promotion. And yet, with the right follow up, you can turn these customers into loyal ones.
3. Convenience-Driven Customer Base
Convenience is key for these customers. They choose your business because it fits their need for a quick and easy solution. These customers might not be loyal to your brand. Yet they do love the speed and convenience your business offers.
The convenience-driven customer might use your app because it offers the fastest delivery or simplest checkout process compared to your competitors. Keeping them satisfied means being as efficient as you can and giving them a seamless, easy experience.
4. Price-Sensitive Customer Base
These customers are driven by price and discounts. They might switch between brands based on who has the best deal at any given moment. They’re the customers who wait for sales or sign up for email alerts to grab discounts before they buy.
While these price-sensitive shoppers can be a bit unpredictable, you can encourage their loyalty with well-timed promotions and special offers. The key is to provide value that goes beyond just lowering your price.
5. Impulse Buyer Customer Base
We’ve all spontaneously bought something based on emotion or instant gratification. That’s exactly what an impulse buyer is. They didn’t necessarily plan to buy from you, but something about your product or offer caught their eye.
These customers are often influenced by strong visuals or limited-time offers. If you want to attract this base, you’ll need to focus on creating a memorable and fun shopping experience and honing your marketing efforts.
Best Practices to Build and Nurture Your Customer Base
Building a robust customer base doesn’t happen overnight. You’ll need plenty of strategy and a real focus on the customer. Consider some of these best practices.
1. Understand Your Customer’s Needs
Getting to know your customers really well is a must if you want to connect with them and offer them the right products. Don’t just gather general facts. Instead, discover what makes your customer base tick. What motivates and challenges those customers?
To do this, you’ve got to invest the time to research the different groups within your customer bases. You can then create detailed profiles that reflect their specific needs. That way, you can tailor your approach to fit them perfectly.
Tip: Tools like surveys and focus groups can give you direct customer feedback. You can then use this to adjust your strategy and stay in tune with what your customers want.
2. Deliver Excellent Customer Service
We all want to trust the brands we buy from. It’s a crucial part of building your customer base. The fastest way to earn trust is through consistent, high-quality service that prioritizes customer satisfaction. Every interaction matters — whether it’s a support agent with a VoIP phone helping a customer with a problem, or a sales rep checking in after a purchase.
Customers appreciate it and always remember when their concerns are handled quickly and with care. If every interaction a customer has with you is positive, they’ll stick with you for the long run.
Tip: Invest in a full training program for your customer service team. This should go beyond the basics and equip your staff with the professional tools they need to handle any situation. When your team is well-prepared, customers will feel valued during every interaction.
3. Prioritize Customer Retention
Yes, bringing in new customers is always exciting. But your main focus must be keeping the ones you already have. After all, loyal customers tend to be more valuable in the long run. They often buy more and aren’t as concerned about price. They’re also likely to spread the word about your business to others.
To keep your customer base happy, consider adding loyalty programs that reward repeat purchases. You can also use personalized marketing to make your customers feel special, such as personalized offers based on their previous purchases or wishlists.
Tip: Keep an eye on important customer retention rates like how many customers are leaving (churn rate) and how much each customer is worth over time (customer lifetime value). This will help you spot areas where you can improve and hold onto your more valuable customers.
4. Leverage Technology
Technology, when used well, can completely transform your approach to your customer base. A standard bit of tech is a customer relationship management (CRM) system. A CRM allows you to keep all your customer information in one place. With a CRM, you can keep a clear view of your customers’ history and interests — useful for both customer service and marketing strategies.
No one likes waiting around for customer service, but AI tools can improve both your response times and customer loyalty. A typical example of an AI tool is a virtual call center, which can quickly route calls to the right agents or even handle routine questions with a chatbot. Customers are handled efficiently and your teams are freed up to focus on difficult problems.
Tip: You should always automate routine tasks. These might include sending follow-up emails or assigning support tickets. Doing this will save your team time and reduce the risk of mistakes or forgotten follow-ups.
5. Offer Value Beyond the Purchase
Even if you have a great product, what other value could you offer your customers? Your website should have more than just your products and your business phone number. Adding educational content and helpful resources would be a great start. You could also offer exclusive access to events or promotions to loyal customers.
To really offer extra value, go the extra mile. Doing this means you can build a stronger connection with your customer base and show how much you care. This added value can set you apart from your competitors, who may only be offering the product.
Tip: Create a blog or host webinars. Video content is especially valuable. Make any such content relevant to your brand and products and use customer feedback to improve future content for your customers. You should show your customer base that you’re committed to helping them get the most out of their experience beyond just buying your stuff.
Frequently Asked Questions
How do I best identify my customer base?
To identify your customer base, you’ll need to collect and analyze data that covers their behavior and preferences from sources like sales records and surveys. Then, sort this data into profiles based on the customer bases listed above.
What is a customer base strategy?
A customer base strategy is a plan designed to attract customers and grow your customer base with tailored marketing and services. It involves understanding your customers’ needs and using this to improve customer loyalty.
Originally published Sep 02, 2024
