COSTUMERS (Jay Boy T. Comonical) Rueda Street, Calbayog City, Samar, Philippines | +63 (055) 533 9857 | main@nwssu.edu.ph | www.nwssu.edu.ph WHAT IS COSTUMERS? In the simplest terms, a customer is someone who receives a good, service, or product from a seller in exchange for something of value, usually money. This can be a person or even another business. WHAT ARE THE TYPES OF COSTUMERS? Loyal customers: These are your repeat customers who consistently buy from you and are often your biggest advocates. Impulse buyers: These customers make decisions on the spot, often without much thought or planning. They're attracted to eye-catching displays, limited time offers, and emotional appeals. Discount customers: These customers are primarily driven by price and are always looking for the best deal. They're likely to compare prices across different stores and may only buy from you when you have a sale. Need-based customers: These customers know exactly what they want and need and are not swayed by impulse or emotion. They're focused on practicality and value and are likely to do their research before making a purchase. Wandering customers: These customers are unsure of what they want and are browsing for inspiration. They may need help from salespeople to find the right product. COSTUMERS VS CONSUMER Costumers Consumer • Focuses on purchase • Focuses on usage • Can be anyone • Typically, the end user • Motivation can vary • Motivation is consumption • Not always the end user • Can overlap with customer Customer needs, Pain points, and Demographics Costumer needs Customer needs are the underlying motivations and desires that drive customers to purchase products or services. They represent the problems, goals, and challenges that your customers hope to solve or achieve through your offerings. Understanding these needs is crucial for any business success, as it allows you to develop products and services that truly resonate with your target audience. Functional needs: These are the practical and tangible needs that a product or service must fulfill. They relate to the specific features and functionalities that customers expect and rely on. Social needs: These are the needs related to belonging, status, and identity. Customers might be motivated by a desire to fit in with a certain group, project a certain image, or feel good about themselves through their purchases. Emotional needs: These are the needs related to feelings, experiences, and personal well-being. Customers might be looking for products or services that evoke positive emotions like happiness, excitement, or peace of mind. Latent needs: These are the unspoken and often unrecognized needs that customers may not even be aware of themselves. They can be discovered through careful research and observation and understanding them can lead to innovative products and services that fulfill desires customers didn't know they had. Pain Points Business pain points are the specific challenges, issues, or problems that hinder a business's growth, profitability, or overall success. These pain points can manifest in various ways, impacting different aspects of business operations. Identifying and addressing these pain points effectively is crucial for any business to optimize its performance and achieve its goals. Customer Related Low customer satisfaction: This pain point can stem from various issues like poor product quality, inadequate customer service, or inconvenient buying experiences. It can lead to negative brand perception, lost customers, and decreased revenue. Customer acquisition challenges: Difficulty attracting new customers can hinder growth and limit market share. This could be due to ineffective marketing strategies, irrelevant products, or high competition. Customer churn: Losing existing customers can be even more detrimental than acquiring new ones. Understanding the reasons behind customer churn, like high pricing, lack of loyalty programs, or competitor offerings, is crucial for retention strategies. Operational Plan Inefficient processes: Manual tasks, outdated systems, and poor communication can lead to wasted time, increased costs, and errors. Streamlining processes can improve efficiency, productivity, and accuracy. Talent management challenges: Finding, hiring, and retaining skilled employees can be a major pain point for many businesses. This can affect productivity, innovation, and overall business performance. Technological limitations: Outdated technology, lack of automation, and data silos can hinder growth and competitiveness. Investing in modern technology can improve efficiency, data analysis, and customer experience. Financial Pain: Low profitability: Insufficient revenue, high expenses, and inefficient cost management can lead to financial challenges. Analyzing operating costs, optimizing budgeting, and exploring new revenue streams are crucial for financial stability. Limited access to capital: Lack of funding can restrict growth opportunities and hinder expansion plans. Securing loans, exploring alternative funding sources, or improving financial statements can alleviate this pain point. Cash flow issues: Inconsistent income or high upfront costs can lead to cash flow problems. Implementing sound financial planning, managing payables and receivables efficiently, and exploring flexible payment options can help address this issue. Demographics In business, demographics refer to the statistical characteristics of a population: its measurable and observable traits. By understanding these traits, businesses can gain valuable insights into their target audience, tailor their marketing and sales strategies, and make informed decisions about product development and resource allocation Identifying Target Audience Age: Targeting products and services based on age groups, like toys for children or retirement planning services for seniors. Gender: Marketing campaigns can be designed to resonate with specific genders, considering their preferences and buying habits. Income: Understanding income levels helps businesses price products and services appropriately and target the right segment of the market. Education: Businesses can adapt their communication and content based on the educational background of their customers. Occupation: Knowing customers' professions can inform product features and benefits relevant to their specific needs. Location: Geographic demographics help businesses identify regional trends and adjust their offerings accordingly. Market Research and Analysis Identifying market size and potential: Demographics reveal the number of people who belong to the target audience, allowing businesses to estimate potential market size and revenue. Understanding consumer trends: Analyzing demographic data over time can reveal shifts in preferences, buying habits, and emerging needs. Segmenting the market: Demographics allow businesses to divide their target audience into smaller, more manageable groups with similar characteristics, enabling targeted marketing efforts. Product Development and Pricing Developing products that meet customer needs: Understanding the age, income, and lifestyle of customers can guide product features and functionality to ensure relevance and market fit. Setting competitive pricing: Pricing strategies can be informed by customer income levels and spending habits to ensure affordability and maximize value perception. Thank You!
