One day, I went to a musical instrument shop yesterday to buy a guitar for my younger brother. The Shopkeeper told me that they are offering a 20% discount to customers who are buying musical instruments from them for the first time and whenever there will be an issue with the instrument for the next six months, they will be doing the repairs for free. I was happy to get a 20% discount as well as a guarantee for 6 months. So, I immediately purchased a nice guitar thinking that this shop has really good services at affordable prices.
Now the shopkeeper, by offering me these services, made me his lifetime customer and ensured customer retention. Since the product was purchased from his shop, he has certain expertise in that product and by offering me a 20% discount, he made me believe that I am getting the product for a less price. Even if he had increased the product’s original price before marking a discount, the 20% discount created a sense of urgency and satisfaction in me. Additionally, by giving me a guarantee of 6 months on the product, he made sure that any repairs on that product will come to him.
Now think, what will happen if you treat your customers the same way? What if every time you have a new customer, you give them a certain percentage of discount or render them some of your best services? And what if before offering that discount or promotional service to that specific customer, you already know what type of discount or service will the customer prefer the most and give it to her/him accordingly?
Well, this is why Customer Segmentation and Customer Targeting in Dry Cleaning Business is Important. After you segment your customers according to their choices and needs, you can deliver personalised services and eventually rear your business, a better output.
Let us understand how to target customers for the dry cleaning and laundry business by listing the 5 types of customers:
- Young Generation: This Customer Segment in Dry cleaning and laundry business comprises the Millenials and GenZ in the age of 18-30 who are either students or working professionals. More than 90% of this generation is tech-savvy and likes to make use of new services every day. Tell them to choose between a dry cleaner who gives them handwritten receipts and offers hand packaging and the one who gives them automated receipts and offers beautiful looking branded packaging. They will, for sure, without any second thought, choose the latter one. This is a generation that drives the future of the world. So, it becomes necessary to cater to this generation’s needs and keep up to date with their demands. So the next time whenever someone from this customer segment visits your store, interact with them, give them the automated receipt for their order and tell them that your shop has free wifi. Then just wait and watch the changes happening to your dry cleaning business.
- Busy Parents and Working Professionals: This Customer Segment in Dry cleaning and laundry business comprises people between the age group 30-55, most of whom are working and have less time for their household responsibilities. These are usually rich households and even the little details about these customers are to be taken care of. For instance, Rohit, who is one of our clients told us that one of his frequent customers from this customer segment stopped coming to him for a few days. When Rohit called him up to find out the reason for him not coming, the customer told him that his office route has changed so he does not have time to visit the dry cleaner separately. That’s when Rohit told him that he offers a pickup and delivery facility as well and from now on, his delivery boy will pick up the clothes every day from the customer’s house. Thus, interacting with these customers is a major part of retaining them. These customers have a high paying ability and a high retention rate if you understand their preferences.
- Retired and the Elderly: This Customer Segment in Dry cleaning and laundry business comprises people above the age of 55. Maximum elderly couples whose kids are settled someplace else and they live alone in their house outsource most of their household work. They have enough money to pay for these services but lack the physical ability to do this work themselves. They might not be that much comfortable with the app-based bookings and digital payments but they just love the home delivery and pickup services. Another trait about this customer segment is that they have very high loyalty. If once they use a service of any particular business and if they like it, then it is very unlikely that they will even think of switching to someone else unless they face some really big problem with the current service provider.
- Middle Income Group: Middle Income Group forms a major part of every country’s population. In fact, each country is run by the middle-income group only. This Customer Segment in Dry Cleaning Business might have a less frequency ratio but they are very loyal to each business from which they render services. They usually choose to give their clothes for dry cleaning on a monthly basis or special occasions only but whenever they do, then after making sure that the dry cleaner has done a good job, they recommend that dry cleaner to n number of people within their social circle. This eventually increases the dry cleaner’s customer acquisition rate.
- Frequent Travellers: These type of customers can be in any age group but they are certainly the most frequent users of dry cleaning and laundry services. They are usually from the upper-middle class and rich income group and develop a habit of giving their clothes for laundry out of visiting and living at various destinations around the world. When they are travelling, they make use of the hotel’s laundry and dry cleaning services but when they are home, they give away their clothes as well as their other travelling essentials like bags and shoes for cleaning and washing. These are the most interactive customers among all your customers and they have a jolly nature and a high paying ability. They might be neutral to your business automation but they love a business with extremely good services at the doorstep.
But despite paying attention to all these types of customers, it is possible that they might not render your services or your customer retention rate might reduce. One of the major reasons for a low retention rate despite a good customer understanding is not adapting to market changes. The world now is working digitally and every customer prefers a business that is automated and provides digital services. So,
‘Change as per your Customers before Customers Change You’
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