Matthew Keylock

BrainTrust Query: Forget New Shoppers. Talk to Best Customers

February 16, 2012

FROM RETAILWIRE:
Retailers still spend much too much time, money and newsprint chasing new and highly unsustainable shoppers. At the least, stores should make sure such efforts are not alienating their best existing customers. Do you think most retailers are currently aligning store circulars to their VIP shopper base?      [more...]

Completely agree with the philosophy in the article. dunnhumby is founded on the same "customer first" view.

Customer insights can really benefit the circular and how well it resonates with customers and performs for the business. Mark's list of 5 is good and you can go even further too; by looking at household level engagement with individual product offers to understand the role each offer plays on the front page. Armed with these insights you can optimize the reach, balance, and return of the circular to ensure consistent and sustainable performance over time (using the right measures!).

The idea of focusing on your best customers is analogous to focusing personal time on best friends. I don't spend most of my time and effort trying to find new "best friends": likely I won't find any and in the process I'll lose all my current ones!

In business, the keys to winning with your best friends is a combination of great customer data insights, a customer first or loyalty philosophy, and an organization designed to be customer first (not product and/or shareholder first). Each one of these is tough to achieve, but only all 3 will deliver breakthrough!