3 Types of Customers

"This is too long to read" summary:
If you want to increase your revenue, focus on the groups of people who make up your customer base. Those who have already bought are your best chance.

When you say that you have a goal to increase revenue, that’s awesome. It is good for the business, it can get very specific, and allows you to set reasonable step goals along the way.

But you still need to find the smaller projects and tasks that will let you achieve your goals. You need to know what actual work to do every day, and how to measure whether or not you are moving in the right direction relative to the larger goal.

One way to figure those tasks and incremental goals is to decide WHO you want that money to come from, and how you’ll earn it.


People who give you money (or might soon)

First time customers

First time customers are just that, people who spend money with you for the first time. You want to turn first-time buyers into long-term customers and brand advocates. To do that, you’ll want to make sure they have a wonderful buying experience.

This goes beyond just delivering the product they have purchased. Reach out to these customers. Offer them support, find out what questions they have, be proactive about any problems and customer service issues. If you can wow a first time customer, you will create repeat customers and lifetime fans.

A few ways to increase revenue from first-time customers

  • Start off the relationship right with a great post-purchase email sequence
  • Offer upsells and cross-sells based on their purchase (Something about doing it in a pop-up or email after, do not interrupt the buying mindset)
  • Be proactive in customer service, offering content that helps them use your product or adds value to their lives.
  • Do not require an account creation before purchase- (smooth out the road to purchase as much as possible to avoid abandonment)
  • Offer free shipping or other discount over a certain order amount.


Repeat customers

Repeat customers are those coming back after one or more purchases. You want to continue nurturing your relationship with them and offer them options and reasons to purchase again.

The longer you can retain a customer, and the more they spend with you over their customer lifetime, the better. There is a certain cost to acquire new customers (marketing and advertising costs), and the more each customer spends, the more you recoup and surpass that cost. Repeat customers are much more profitable than first-timers.

A few ways to increase revenue from repeat customers

  • Offer loyalty rewards, discounts, or gifts to repeat customers as a thank you.
  • Use email to provide them with some type of valuable content or help. Do not just continually sell at them.
  • Focus your customer research on these people. They give you the most money, so you want to target people like them.
  • Consider reaching out to high-value customers personally. Talk to them and solidify your relationship. Treat them as VIP’s, not just cash cows.


Potential customers

Not every sale will come from a first visit to your site. In fact, many won’t. Higher priced products especially may require multiple visits and exposures to your brand to complete a sale. That’s fine. People who return to the site are much more likely to buy later.

With potential customers, you want to either get a macro conversion (a sale) or a micro conversion (a step towards a sale, preferably permission to market to them personally via email). You want to establish a hold in their mind and convey how your products will make their lives better.

A few ways to start the money flowing from potential customers

  • Offer a real, valuable reason that is focused on the customer for them to sign up for your email list, and then deliver on that value.
  • Design for conversion. You should like your website appearance, but it’s far more important that the site converts. Focus on the visitor and their experience.
  • Remove as much friction as you can from the moment someone learns your name to the moment they finalize their order. It is YOUR JOB to make it easy for them.
  • Survey your existing customers. Use their responses to focus your web copy, targeting, value proposition.
  • In the words of Kai Davis– There are more people with less money, than there are with more money. Small initial purchases are great, because they get people used to opening up their wallet and using their credit card on your site.


Money comes from people

… and those people have differing needs, concerns, fears, hopes, reservations, and relationships with you.

Each of these groups have different needs, different relationships with you. The thing that all of these people have in common, is that they are YOUR people. These are the people you want to interact with through your site the most. You want them to give you money, and you want to be happy with the exchange.

Focus on addressing the needs, concerns, fears, hopes, reservations, and your relationship with the people who give you money, and you’ll have a clearer picture of how to grow your bottom line.

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