1. The Customer Pyramid Lisa Berzett

2. Customer Pyramid

3. Platinum Segment Characteristics Typically, the platinum segment consists of the most loyal customers. These customers aren’t overly concerned with product price. These customers are concerned with value and quality of the merchandise they purchase. They also are the heaviest users of the products. These customers are the most likely to invest in and try new products.

4. Platinum Segment Most businesses keep their platinum customers by offering incentive programs. Store specific credit cards Discounts based on the amount of spending Frequent shopper programs Special customer services

5. Gold Segment Characteristics The gold segment differs from the Platinum segment because most gold segment customers are more price sensitive. Gold segment customers don’t purchase as much as platinum segment customers. Gold segment customers aren’t as loyal to one retailer and will go to competitors if the price is right.

6. Gold Segment Retailers that would like to turn gold segment customers into platinum segment customer have a couple of different options. Frequent shopper programs Return customer discounts Price matching

7. Iron Segment Characteristics Iron segment customers most likely are not loyal to any one retail business. These customers are very price conscious and will shop many places to get the best price. These customers are not likely to spend much at any one store. Iron segment customers don’t deserve any special treatment because of the small amount of business they provide to a single retail business.

8. Iron Segment Turning an iron segment customer into a gold segment customer is very difficult. Some ways that this might be accomplished include the following: Price matching Sales on specific merchandise Advertising Comparable merchandise at discount prices

9. Lead Segment Characteristics Lead segment customer are the “problem” customers. These customers are the most likely to actually cost a business money by being customers. Lead segment customers demand a lot of attention for very little spending. In this segment, abuse of return privileges are very common.

10. Lead Segment The lead segment has been a nuisance to retail businesses for years. Because of this many retailers have implemented different programs to dissuade the lead segment customers. Tighter return policies Associates who have specifically been trained to deal with these “problem” customers Charging for services that most lead segment customers are abusing.