The fingers that count in retail

There are two important customer types in retail that you should pay attention to. Once you understand these two customer types, you’ll be able to execute marketing, store events and promotions that serve each type the best — which leads to more sales and profit for you.

When I share these two types with store owners, I love to use the analogy of Thumbs and Pinkies. Put both your hands up in front of you, fingers spread wide. Now fold down your fingers so all you see are your thumbs. Your thumbs represent your very best customers because 80% of your sales come from only 20% of your customers.

Customer Type #1: Thumbs

This is why we refer to your best customers as your Thumbs. They buy full- price merchandise, come back often and rave about you to all their friends. They’re not bargain hunters, and they don’t usually respond to sale language.

This customer type would much rather pay full price in order to get the newest styles and your excellent, personalized customer service than be in a big crowd during a sale.

Customer Type #2: Pinkies

Your Pinkies are your sale customers. They love a deal and the hunt of a bargain. We love our Pinkies! They are essential to every successful retailer because they help us move out old merchandise, putting cash in our pockets! So when we’re running a sale, we’re not talking to our Thumbs. Instead you must talk to and sell to your Pinkies. But don’t make the mistake of thinking that you can just do any kind of sale and your Pinkies will come running.

The secret to move the inventory you want to move, improve your cash flow and protect your margins is tailoring your sale and your message to your Pinkies.

Your thumbs represent your very best customers because 80% of your sales come from only 20% of your customers.

The words you use matter. The timing and length of your sale matters. Your markdowns and merchandising matter. To move the most old inventory out and to serve them best, you must give your Pinkies what they want. What they expect.

Customer Type #3: The Middle Fingers

I’ll never forget the time I was sharing this information during a speaking event, and in the crowd I saw an arm raised by a sweet lady that looked like a grandma. “But Cathy” she said, “What about the middle fingers?”
The crowd burst out laughing as did I — so of course the middle fingers now deserve an honorary mention every time I talk about the two important customer types.

The middle fingers represent everyone else in your customer base – the peanut gallery, the ones that make the most noise, but don’t spend enough in your store to earn a vote in your inventory or marketing strategy.
Of course you’ll always treat them to the amazing customer experience everyone who shops with you gets — But you won’t be basing inventory, marketing or policy decisions on their demands.