Publish Date

June 19, 2023

How many companies are there in your industry? Ten? One thousand? More? What sets you apart from the crowd?

Take a minute to think about it.

Do you have the lowest prices? Are you the best at what you do? Or, is it just that you're the only one around?

Regardless of your answer, unless of course it was “award-winning customer service,” you’re going to want to keep reading. Below, you’ll learn how to identify the different types of customers, the cost of poor customer service and tips that’ll improve your customer retention, all of which are important if you want your actions today to help grow your future business.

The Types of Customers

Essentially, there are two types of customers: transactional and relational. Transactional customers are primarily concerned with getting the best price. These are typically one-off customers; unless you always have the lowest prices and best deals. Even then, you can’t consider them loyal customers because if someone else offers a lower price for comparable goods or services, they’re switching; no hesitation.

On the other hand, you’ve got relational customers. For these customers, price isn’t the biggest consideration. Instead, they’re more concerned with relationships, trusting the brands they buy and the people they work with. This is great news because even when someone else offers a lower price, the relational customer is likely to continue working with you because they know and trust you. This is where those improved customer service skills can really be a game changer; they’ll be the difference between gaining/retaining and losing a lifetime customer.