Your target customer will fall into one of three spending ranges: High spender, medium spender, and bargain shopper. Each of these ranges comes with its own benefits and expectations.
Understanding where your target customer falls with regards to spending will help you to cater to the customer, being sure to deliver everything he/she expects.
This customer will expect top-of-the-line ingredients/materials and packaging. They expect you to be knowledgeable to the core of your product. Packaging must be on-point, no print-it-at-home labels will work for this customer. To attract this customer, the product and aesthetic must be aligned with branding, but believe it or not, so must the price.
These people sincerely believe they “get what they pay for,” and so, you want to significantly mark up your prices for products. But you must deliver. These customers will be extremely knowledgeable about the products their buying, but more so, there is no room for forgiveness. Everything must be perfect every time.
Customer service needs to be astounding and personal. A high-end company must create the feeling of exclusivity, a feeling that someone is being admitted into a secret club by making a purchase.
This customer is conscientious about spending but is willing to spend money on products of good quality and usefulness. This customer would be willing to spend when the product solves a problem, offers a unique take on a classic concern, or out-performs the competition.
This group is harder to sell if your products are priced higher, but they are a dedicated group, as long as you continue to deliver. If the price is right, you will be able to sell more to this type of consumer; they respond to deals such as buy-two-get-one-free, free shipping, or a free gift with purchase. Because this group is still looking to watch their pennies, they want something in return for their patronage.
Customer service should be somewhat personal, which could be as simple as a thank-you card. If this customer receives higher-than-expected service, the perception of your brand will become household for the medium-spending customer.
This customer group is looking to get the most bang for their buck. They shop sales and deals, and will often turn their nose up to the idea of “better quality.” This customer bargain shops for several reasons: 1. They are on a limited budget because of family, extended expenses, etc., or, 2. They are slightly more cynical of retail prices and don’t want to feel “cheated,” or, 3. They are strict about needs versus wants.
If selling or making products geared toward the bargain shopper, prices need to be extremely competitive with the goal of quantity. To be profitable with a bargain shopper target audience, it’s best to offer a minimum selection to ensure your costs are down.
To appeal to this shopper, there needs to be a constant level of sales and discounts to create the appeal that the price is a bargain. These consumers will not respond to sales that are less than 25% off, and they will certainly spend the time comparing prices amongst multiple venues.
While I always advocate for offering the absolute best level of customer service available, the bargain shopper is content with automated customer service and an ability to make contact. The personalized customer service is not an expectation (but always a benefit to every business).
In our globalized economy, meeting the demands of your target customer is simply not enough. Whether you’re offering high-end and luxury items or low-cost items, your consumers still want the ability to reach you and understand your business. Every customer wants to feel valued, and they should be – they are spending money at your business.