There are differences between potential customers and actual customers. They are not one in the same! Every business needs to recognize that there’s a differentiation between potential customers, also known as prospects, and actual customers.
There needs to be a level of respect and interest for both groups of customers. However, when it comes to the buying process there is a distinct difference between the two. The needs and opportunities are vastly different. It would be a huge blunder if a business considered these two groups as the same target audience. The needs and opportunities for both groups are very different.
The Purchasing Process
Potential customers and actual customers need to be handled differently because of where they’re at when it comes to the purchasing process. The purchasing process incorporates the stages of awareness, consideration, and decision.
- Potential customers are usually in the information gathering phase. They exhibit some type of interest in a company’s product or service, but they haven’t decided whether they want to follow through with the purchase.
- Actual customers, meanwhile, have made up their minds and they’re ready to make the purchase of the product or service in order to solve their particular problem. Actual customers have reached the point where they trust this particular business’ products or services.
On the other hand, a business may need to provide more information, as well as encourage a potential customer to make the purchase. Once the sale has been completed, the business may need to implement a variety of communication and follow-up methods in order to encourage future purchases from those potential customers.
Establishing vs. Continuing Trust
Trust plays a key ingredient in customer recruitment and retention. Because a potential customer hasn’t bought anything yet, it is up to the business to create that feeling of trust with the potential customer. Meanwhile, an actual customer has already made a purchase or even a repeat purchase. Therefore, there’s already some level of trust with the business.
For potential customers, the business needs to focus on creating trust. There are host of informational strategies a business can use to generate that trust with potential customers:
– Present product/service demonstrations,
– Display customer testimonials.
As for actual customers, the business must preserve and strengthen its trust with these individuals. Even though actual customers may have bought a product or service, it is vital keep those customers happy, so they’ll return for additional purchases. Open lines of communication, post-sales loyalty, and rewards programs are a few incentives which can help actual customers come back again and again.
Essence of the Relationship
Even though they may be interested in a particular business service or product, it doesn’t take much for those potential customers to lose interest. That means the business must be forward thinking and continually encourage these potential customers to purchase your service or product. Advertisements geared specifically for these potential customers, along with limited-time offers and targeted e-mail campaigns are a few tactics to keep those lines of communication open with these potential customers.
Meanwhile, actual customers are routinely committed with the business are more likely to engage regularly with the business with repeat business, posting online reviews, and asking for customer service help.
Customization and Communication
- Potential customer communication concentrates on building recognition and educating potential customers on the products or services of the business. That’s accomplished with more comprehensive and regular communication.
- Actual customer communication on the other hand, however, is more targeted and concentrated on gratitude, allegiance, and enhancing an already established relationship.
Commitment of Resources
Financially, all businesses look at these two groups differently because the possible return on investment (ROI) is very dissimilar for each group.
- Since potential customers signify future potential revenue, businesses will spend it marketing dollars targeting this audience. There is no guarantee these marketing initiatives will be successful because the potential customer may or may not buy the product or service from the business.
- Meanwhile, actual customers, account for today’s income as well as potential future recurring purchases. Therefore, the marketing initiatives devoted to its actual customers many times produces an improved ROI since a business doesn’t have to spend as much money to target and keep a current customer than recruit a new one.
In Summary
It goes without saying that customers are critical to a company’s success. However, when it comes to various needs and opportunities, there are differences.
Therefore, it’s essential for every business looking for growth to truly investigate and deal with these differences in order to develop productive marketing tactics which can create consistent and long-term dealings. If a business looks to remain financially viable both today and tomorrow, it can’t wait forever. That business needs to act now. As former NFL coach George Allen once said about his football team, “The future is now!”
