Angel and Demon consumers

“The consumer is always right.” Isn’t that a cliché that every marketer is familiar with? However, these days most marketers have discovered a new truth which exemplifies some consumers as being way, way wrong as in being unprofitable. Incidentally, these marketers have classified the profitable and unprofitable consumers as angel and demon consumers. This is a strategy specifically drawn on the research of consultant Larry Seldon who prescribes companies must see themselves as portfolios of consumers, not product lines and hence grade consumers as angels and demons.

Angel customers are profitable to firms, in that they are more compatible and reliable, less bargain hungry, brand loyal and far less cynical of the product or service being sold. Demon consumers on the other hand are the exact opposite of the angels - who buy products, apply for rebates, return the purchases, and then buy them back at returned-merchandise discounts. They also flip the goods at a profit on e-bay, eventually eating up on the sales and profits leading to the dejection of the firms.

This needs to be effectively handled with minimal fuss and without damaging the reputation from both the angels’ and the demons’ perspectives. Firms must draw their customer data and sort their profiles into the good (Angels) and the bad (Demons). Marketers must know their angels and hence stock more merchandise and provide best service to them vis-a-vis the demons who tend to get spoilt by the plethora of promotional and buy back offers that are made available to them. Endorsing the same concept to the marketers it is important for us to mention – Marketers Beware – of the Demons.