Understanding and managing customers

A customer is an entity a marketer believes will benefit from the goods and services offered by them. 

There are different types of customers, these are existing customers former customers, potential customers and good customers. Understanding customers is the key between success and failure.

• Existing customers
  • Existing customers are the most important type. These are defined as having purchased something within a recent time length; the length of time is relative to marketer preferences
• Former customers
  • Former customers were existing that didn’t purchase new products within the marketer’s time length for which reason they are reclassified 
• Potential customers
  • Potential customers are important for market expansion. These are customers that the marketer believes posses the need for the product offering, the means to purchase it, and have the authority to make a purchasing decision
• Good customers
  • There are good and bad customers. The good customer holds the potential to offer long term value to the organization by purchasing more products, higher profitability, prompt payments, offers feedback to better and create new products, and self promote products
  • Efforts should be expended to build, strengthen, and sustain this relationship