satisfaction and loyalty. As customers are plotted into a graph with these two factors, they can be categorised into different groups.
The 6 customer types
Defectors – these customers are neither particularly loyal nor particularly satisfied. If they haven’t already left then they may do in the future. Some of these customers will willingly become loyalists when they receive the right products and service.
Hostages – these customers have a medium to high level of loyalty but with a low to medium level of satisfaction. These customers tend to be ‘stuck’ possibly into a contract, with no easy way out or where switching costs are too high.
Mercenaries – these make up the bulk of the customer base. Apparently satisfied and loyal, however they may switch as soon as they get a better deal, without warning. Price is the main differentiator for this customer.
Loyalists – these customers are highly satisfied and are very loyal. They are seen as the bedrock of a company and they keep coming back. The only problem is that loyalist customers do not spread the word or recommend a business as much as owners would like.
Terrorists – characterised by a low level of satisfaction and a very low level of loyalty. These customers will be likely to leave and they can also do huge damage to a business by spreading negative comments about poor products and service to others.
Advocates – these customers are very similar to loyalists, with a high satisfaction and loyalty level, but will also actively spread the good word.
Avant Garde Ideals is an outsourced event sales firm based in Manchester. It is essential the firm understand everything about consumer behaviour in order to get the best results for their clients. Avant Garde Ideals provide professional presentations to more than 3000 new customers each business day. And through more than 32,000 in-person event sales presentations in the first year of business, Avant Garde Ideals continued growing clients’ business – and constantly get results.