The key customer types in retail and how to meet their needs
Knowing your customers is one of the most important to-dos on every retailer’s long list. Because those who understand how potential buyers behave and how to address and satisfy them have already done significant work on the path to a high conversion rate.
Many professional marketing departments invest in creating so-called personas to determine the characteristics, preferences, and traits of the typical customer for a product. However, this can be costly. Experience shows that there are several recurring customer types that play a role in retail. For Amazon sellers launching a new product or looking to optimize their listing, it can be helpful to orient themselves around these customer types.
In this blog post, we aim to clarify what exactly customer types are by definition, which customer types prevail in B2B and B2C commerce, and how understanding this can contribute to increased sales.
The 4 key customer types in retail and online shops
Right off the bat: This blog post makes no claim to completeness. Additionally, people and human behavior are difficult to categorize into rigid boxes. You must always account for hybrids, overlaps, situational deviations, and exceptions to the rule. In reality, it can be challenging to clearly identify customer types. Further differentiations are, of course, always possible: other blogs, for example, describe more than 10 of the most common customer types (e.g., complainers, chatterboxes, know-it-alls, bargainers). However, the psychology behind the individual types is often not very evidence-based.
For Amazon sellers, however, the usefulness can be questioned. While categorizing customers into types can help with listings and the like, the same marketing and communication opportunities are not available on Amazon as they are in brick-and-mortar retail. Nevertheless, particularly challenging customer types, just like in retail, can be better addressed on Amazon when their characteristics are known. Therefore, it is worth taking a closer look.
From Dominant to Conscientious – The DISC Model
The so-called DISC model has been used in companies for several decades to assess customers and conversation partners, for example, in personnel development. It is also popular in sales and marketing to identify different types of customers. It operates on four fundamental principles of human personality:
As mentioned, most people cannot be exclusively categorized into one of these four DISC traits. However, one tendency is often more pronounced than the others. This can also change from situation to situation. While it is important for sellers in retail to adapt to different people within a few seconds, this aspect is absent in online commerce. Here, the focus is primarily on satisfying the various needs in the design of product pages or in email communication.
Customer Type #1: The Dominant
The dominant type is direct and strong-willed. They appear energetic and determined. Their most pressing question is: What can I achieve with this product? They already have concrete hopes and expectations for your product and are well-informed in advance.
In communication with dominant customer types in retail, the focus is primarily on results. Therefore, in your product description, clearly and explicitly state not only what your product is but also its benefits. What features does it have, why does it work so well, and how does it solve the buyer’s problem?
Customer Type #2: The Initiating
Every seller likes this type of customer – they are enthusiastic, extroverted, and optimistic. They tend to see the positive attributes of a product and are willing to believe in the concrete benefits for themselves. You can also easily encourage them to leave reviews.
Sellers should take advantage of these traits. Unlike dominant customer types, the initiating type is not as interested in hard facts. Instead, describe the value that your product can have for the buyer. Captivate the initiating type with good storytelling and A+ Content, and you will have the sale almost in the bag.
Customer Type #3: The Steady
In direct conversation, the Steady type is an extremely pleasant partner, as they are self-assured, reliable, and rather reserved, yet they know what they want. However, they can be a tough nut to crack for online sellers: those who do not meet the needs and goals of the steady type with their product description are at a disadvantage.
On the other hand, steady customer types can also develop into the favorite customers of the seller, both in retail and online. The needs of the steady type do not change overnight. If a product has convinced them, they will stick with it – and they may also make regular purchases. Ideally, the steady type even develops into a loyal regular customer. Therefore, highlight the Unique Selling Points in your product description and show how your product supports their goals in various ways.
Customer Type #4: The Conscientious
The conscientious type enjoys analyzing, approaches tasks systematically, and relies on the insights gained from this process. Aside from that, they are rather reserved and withdrawn, which is why the conscientious type rarely writes reviews.
Sellers can certainly satisfy the conscientious customer type. Their analytical disposition makes them receptive to factual knowledge. Therefore, convince this type with data and facts about your product and its benefits. Support these with application examples or study results.
Conclusion: Different Customer Types = Different Approaches
Customer types in retail, marketing, sales, or e-commerce can often be classified based on certain personality traits. This allows for the derivation of specific strategies for engagement to achieve the most effective conversion to purchase.
While sellers in brick-and-mortar retail have many opportunities to individually address each customer type, online shop operators usually only have the textual and graphical level at their disposal. It is no wonder that in physical retail, additional customer types such as the Impatient or the Indecisive are also considered. Talkative or Complaining customers are also described.
Amazon sellers are even more limited, as a sales conversation practically never takes place. Typically, they can only design the product detail page or their Brand Store. However, customer types can still be helpful in this context. The advantage: the time pressure that exists in a sales conversation is eliminated.
According to the DISC model, four tendencies can be identified: dominant, initiating, steady, and conscientious customer types. In both retail and online commerce, sellers should excel with product benefits and features, as well as with data and facts, along with good storytelling.
Frequently Asked Questions
Since this is not an exact science, there are many different customer types and consumer types. In retail, for example, concepts based on the DISC model are common, which categorize buyers into four personalities: the Dominant, the Initiating, the Steady, and the Conscientious.
Whether customer type or consumer type: there are plenty of examples of different buyer personalities available online. Customers are categorized based on certain common characteristics, behaviors, or needs. Characteristics can include age, gender, or interests, but in retail, psychographic and behavioral traits are usually decisive.
The goal of a type-appropriate customer approach in retail is to make the communication and interaction of a company with its customers as effective and efficient as possible. By tailoring the approach to the specific needs, preferences, and behaviors of different customer types, companies can achieve several advantages, such as increased sales, enhanced customer loyalty, or more satisfied customers.
This varies from industry to industry and is primarily based on which aspects influence the customer’s purchasing decision. Customer types in brick-and-mortar retail are usually classified based on their behavior during the consultation or sales conversation. The DISC model is a good starting point for understanding customer motivation.
Dealing with an unfriendly customer in sales requires patience, empathy, and professional communication skills. Always try to de-escalate the situation and find a satisfactory solution.
• Stay calm and do not let the customer’s mood affect you.
• Show empathy and understanding by putting yourself in the customer’s shoes.
• Remain objective and do not take it personally by focusing on the facts.
• Set boundaries if the customer becomes abusive or disrespectful, but do not react emotionally yourself.
According to the DISC model, the following four customer types are distinguished in retail: the Dominant, the Initiating, the Steady, and the Conscientious. Other categorizations may include more types, such as 6 customer types, including, for example, opinionated individuals. However, not all of these types are always substantiated in psychology.
There are a number of scientific and non-scientific consumer types. According to the DISC model, the following four customer types are distinguished in retail: the Dominant, the Initiating, the Steady, and the Conscientious. Other customer typologies may also include personalities such as the Complainer, the Stressed, or the Skeptic.
Customer groups are usually understood in the same way as customer types. In retail, behaviors and psychological traits are particularly decisive for categorization. Customer groups can be characterized by specific psychological traits, for example.
Important customers are often referred to as “key customers” or with the anglicism “key accounts.” These terms describe customers that are particularly valuable and crucial for a company’s business success. Such customers typically have significant purchasing power, a high order volume, or a certain strategic importance.
Even though there is no traditional sales conversation on Amazon, the product description, customer reviews, and the overall customer experience play a crucial role in building a connection with different customer types. Amazon sellers can cater to various DISC customer types by providing clear and precise product information, responding to customer feedback, and offering excellent customer service that strengthens customer trust and addresses their needs. A good customer service can positively influence the purchasing decision. Interactions in reviews and ratings are particularly important. They give customers the feeling of being heard and show that the seller is addressing their concerns and wishes. Positive responses can lead to brand loyalty and ultimately to further purchases.
Image credits in the order of the images: © GamePixel – stock.adobe.com / © Skyline Graphics – stock.adobe.com
