To organize sales prospects, potential customers can be divided into three major categories:

• Prudent shoppers
• Selective shoppers, and
• Bargain hunters

I recently reviewed a book that does a great job of explaining these three types of potential customers. You can access that review by clicking the link below or click the book’s cover above to buy it from Amazon.

Navigating The Marketplace Review

Organize Sales Prospects: Potential Customers = Prudent Shoppers

Prudent shoppers buy neither the best nor the cheapest products and services. They look for the best combination of good products and services and low prices.

They will often give up some services to get a low price and most often shop at discount stores.

This is the largest group of customers and competition to get their business is very intense. Small business owners should generally avoid trying to compete for these customers.

Organize Sales Prospects: Potential Customers = Selective Shoppers

Selective shoppers want something extra and are willing to pay for it. That something extra varies by the type of selective shopper.

For example, some selective shoppers, “In-A-Hurry” and impatient consumers are willing to pay extra for speed. They want it now.

These customers include business customers who want fast service, including “Just-In-Time deliveries, instant repair of vital equipment, and immediate communication systems”.

Another type of selective shopper is comprised of “I-Want-What-I-Want” customers. These shoppers want customized products and services that meet exactly what they want and need.

Selective shoppers comprise a much smaller group of customers than prudent customers, but they are willing to pay more, and thus, provide a potentially profitable customer base for small businesses.

Organize Sales Prospects: Potential Customers = Bargain Hunters

Bargain hunters give up product and service benefits in order to get the lowest possible prices. They are motivated by “limited incomes, extreme price consciousness, extreme frugality, and sometimes, simply the quest for a bargain.” They often shop at flea markets and auctions.

This group of customers is smaller than the prudent shoppers group. It provides another potentially profitable customer base for small businesses.

Organize Sales Prospects: Potential Customers = Combination

Although most customers can be categorized into one of these groups for most of their purchases, customers change shopping behavior depending upon what they are buying.

People tend to be selective shoppers when they are involved with a product or service, and when they believe significant differences exist between competitors. They tend to become prudent shoppers or bargain hunters when are less involved or see little differences between competitors.

So not only can small business owners improve their target base by concentrating on one type of customer, they can also reach customers who just use a targeted shopping behavior for the particular products or services that the small business offers.

To read more about these three types of customers, click on the book image in the upper left corner. The authors, Wayne and Anna Lovern, are high school friends of mine. I really like their book: Navigating The Marketplace: Growth Strategies For Your Business.

All quotes in this post originated with the Lovern’s book. I recommend it for all small business owners wanting to improve their business, organize sales prospects, and get more potential customers

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Posted 11-7-08:Organize Sales Prospects, Potential Customers Into 3 Types

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