A customer type refers to a specific category of consumers based on shared characteristics, behaviors, or preferences. Businesses often classify customers into types to better understand their needs and tailor marketing strategies. Common customer types include loyal customers, new customers, and discount shoppers. Identifying customer types helps companies enhance their products and services. For instance, loyal customers may appreciate rewards programs, while new customers might respond well to introductory offers. By recognizing these distinctions, businesses can improve customer satisfaction and increase sales.