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Types of customer segments

As with all business models, defining the different customer segments is essential in understanding how to best communicate and cater to their specific needs.

Last updated on 
September 28, 2022
Introduction

Introduction

Sourcing Vehicles

Sourcing Vehicles

Procurement

Procurement

Financing

Financing

Acquiring Customers

Acquiring Customers

Above The Line

Above The Line

Point of Sale

Point of Sale

Key Value Propositions

Key Value Propositions

Discounts & Promotions

Discounts & Promotions

Lead Management

Lead Management

Inbound Lead Generation

Inbound Lead Generation

Outbound Lead Generation

Outbound Lead Generation

Managing Customers

Managing Customers

Customer Onboarding

Customer Onboarding

Customer Service

Customer Service

Customer Experience

Customer Experience

Legal Agreements

Legal Agreements

Receivables & Arrears

Receivables & Arrears

Collection & Handover

Collection & Handover

Delivery

Delivery

Fines & Tolls

Fines & Tolls

Breaches & Reposession

Breaches & Reposession

Insurance & Claims

Insurance & Claims

Eligibility

Eligibility

Claims Management

Claims Management

Incident Management

Incident Management

Fair Wear & Tear

Fair Wear & Tear

Fraud Risk & Prevention

Fraud Risk & Prevention

Managing Vehicles

Managing Vehicles

Subscription Structure

Subscription Structure

Profitability & Performance

Profitability & Performance

As with all business models, defining the different customer segments is essential in understanding how to best communicate and cater to their specific needs.

For subscription-based businesses, the type of customer segment will be primarily determined by the status of their subscription which can be either inactive or active. Similar to how we choose to subscribe or unsubscribe to programs such as Netflix, the same applies to car subscriptions.

There are three main customer segments:

  1. New subscribers
  2. Active subscribers
  3. Returning subscribers

New subscribers

While this group of customers may be entirely new to your business and your subscription, there may be a select few who may either have: 

  • subscribed to a car with another car subscription provider
  • an existing understanding of the benefits of car subscription and how it works

Nonetheless, it is still worth explaining how car subscription works for these customers as well as the value propositions of your business - including particular processes and vehicles offered that distinguish your business from other competitors.

Active subscribers

This group includes the customers who are currently subscribed to one of your vehicles. While acquiring new subscribers may be a metric of success, it's important to not neglect your active subscribers for two reasons:

  1. There is potential to optimise for revenue per subscriber by either upselling them subscription add ons that may be of seasonal timeliness, or getting them to upgrade their subscription plan should their needs see fit
  2. Since these customers have already familiarised themselves with your business, selling to them may be an easier process than acquiring new subscribers

Returning subscribers

These customers include those who were once subscribed to one of your vehicles but have now ended their subscription. Reasons for ending their subscription may vary, however, like active subscribers, they are already familiar with what your business has to offer. Whether it's a special promotional discount or an exciting vehicle arriving in stock, there are many different offerings available to get these customers to subscribe to a vehicle again.

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