Broadly defined, how many types of customers are there?

Customers can be broadly categorized into four types: new customers, existing customers, potential customers, and loyal customers. Each of these categories is important for a business's marketing and sales strategies.

New customers are individuals or entities that have never purchased from the business before; attracting them often requires strategies focused on awareness and trial. Existing customers are those who have already made purchases in the past and represent a critical part of a business's ongoing revenue stream. Potential customers refer to those who have shown some interest in the products or services but have not yet made a purchase. Lastly, loyal customers are those who regularly return to the business, often secured through excellent service and engagement strategies. Understanding these four types allows businesses to tailor their approaches effectively, enhancing customer satisfaction and retention.