As an MSME business owner, you’re always trying to balance new ideas, prices, and promotion, but what if your best way to compete isn’t about what you sell, but who you sell to?
Customers shouldn’t be just sales numbers in a spreadsheet.
They’re real people with their own opinions. When you get to know the different types of customers you have, you can grow your business, make more money, and build something that builds a legacy.
This process, known as types of customer segmentation, allows you to customise your process for maximum impact
This will help you spot five main types of customers who come to your shop or visit your website, understand what they really want, and give you clear steps to turn them into loyal buyers.
These are not fixed customer types, but common ways customers shop.
Customers may shift from one customer type to another, but noticing their current behaviour helps you serve them better. This is a practical way to understand the various types of customer buying behaviour.
This is your classic bargain hunter, always wanting the most value for every rupee spent. Their loyalty often depends on getting the best deal. In many ways, they are a discount customer.
They want a product that works well for its price. They feel smart and satisfied when they believe they’ve made a good bargain. At the back of their mind, they worry about being overcharged.
They’ll ask about discounts, compare prices on their phones right in your store, and focus heavily on the cost.
Don’t cut prices in the name of discounts, but show them the value you provide through your products or services. You can bundle products, add a small freebie, or highlight how your product is durable and value for money in the long run.
This customer is the backbone of your business.
They keep coming to your shop because they trust you and share a personal connection, often choosing you over cheaper options elsewhere.
They look for consistency, reliability, and comfort. Socially, they want recognition and a sense of belonging. Emotionally, they seek trust, peace of mind, and to be valued as people. Not just sales.
They often buy, enjoy friendly chats, and don’t worry about small price changes.
Remember their name and last purchase.
A simple, “Good to see you again, Mr Sharma! Did your son enjoy the book you bought last week?” goes a long way.
This personal touch is your strength against big, impersonal competitors.
This customer has a clear goal. This is a classic need-based customer.
They know what they need, have done their research online, and want a quick solution that fixes their problem without any extra hassle.
They look for clear, accurate details and a product that does exactly what it promises. They want to feel confident and in control of their choice, making the best decision based on facts.
These are fast decision makers, always ask specific technical questions, and don’t enjoy browsing or window shopping. Their focus is on finding the right product and moving on.
Here, be the expert, not just a seller. Keep product information ready, answer directly and honestly, and make checkout fast and smooth. Your knowledge about product and customer needs/problems will win their trust.
This customer usually isn’t looking for something specific.
They simply want an enjoyable shopping experience. They often buy on impulse, drawn in by an excitement created by a product or service, attractive displays, or the fun of discovering something new.
They look for excitement, fresh finds, and instant gratification. For them, the feeling they get while shopping often matters more than the actual product.
They stroll around relaxed, without a clear plan, and respond well to new or eye-catching items.
Make your store feel welcoming. Use good lighting, pleasant music, and engaging displays.
A warm, casual greeting like, “Let me know if you spot something interesting!” can turn a browser into a buyer.
Every business gets complaints. These are often considered difficult customers, but they are providing valuable feedback.
Their complaint is a gift. It’s free, high-stakes feedback that shines a light on a problem that is likely affecting other, silent customers.
In practical terms, they require a solution, a fix, a new item, or their money back. On the emotional side, they want to feel someone is listening, gets them, and believes them. They want to be sure you’re taking their issue seriously.
They’ll approach you with a complaint about something that went wrong. Their frustration often comes from feeling disappointed or let down.
When you get a complaint, use the L.A.S.T. method –
This method is a masterclass in how to handle difficult customers.
Identifying and serving all these customers can feel overwhelming and like running five different businesses at once. The right business coaching process gives you the clarity to handle them all without getting confused.
Knowing your types of customers is half the battle. Now, use that knowledge to build a system that creates loyal customers and helps your business grow.
The way you deal with a complaint can make or break your relationship. This reactive support is one of the most critical types of customer service.
A bad experience, if handled well, can actually turn the customer into an even more loyal one.
When a “Worried Customer” comes to you, follow these steps. This framework is a great guide on how to deal with customers effectively.
Don’t argue or get defensive with them. A calm tone shows you’re in control and care about them.
Give these customers your full attention. Repeat their concern back to them…
For example, your delivery was late, and the item was damaged? to show you understand their concern correctly.
Say, “That sounds frustrating.” This helps build trust.
A sincere, “We’re sorry this happened,” goes a long way.
Ask, “What do you think would be a solution that is mutually beneficial?” Involving them often leads to a good outcome.
After resolving the issue, send a quick message to check if they’re happy. This leaves a lasting positive impression.
Here are simple ways to retain loyal customers and keep them coming back.
Keep it easy. A basic point system or a “buy 5, get one free” punch card gives customers a clear reason to return.
Happy customers are your best promoters.
Give them a small discount or store credit when they bring in new buyers. Customers who come through referrals are more likely to stay loyal.
A referred customer is a special type of customer because they arrive with pre-existing trust.
Don’t let the relationship end at the final sale.
Utilise CRM tools to automate these follow-ups and send a brief thank-you note or request feedback. This follow-up shows you care and helps them to keep you as their go-to shopping place.
In India’s complex market, understanding the types of customers is your true guide.
When you see the difference between the “Paisa Vasool” Shopper and the “Apna Dukaan” Regular, and learn how to serve the “Informed Explorer” while delighting the “Modern Browser,” you move beyond selling and start creating long-term relationships.
Remember that each customer category requires a unique approach.
Turning a “Concerned Patron” into a loyal customer is your hidden advantage.
Pick one customer type you meet most often in your business.
This week, focus on applying one simple tactic we discussed to serve them better.
Don’t try to do everything at once. Small, focused actions lead to big results. Let your customers guide you, and growth will follow.
You’ve learned the types of customers, now it’s time to learn more ways in our articles to build stronger business insights to boost your sales.
None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
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