The importance of prioritizing high(er)-value customers
Josh Meyer, LoyaltyOne Global Solutions
Through a special arrangement, what follows is a summary of an article from COLLOQUY, provider of loyalty-marketing publishing, education and research since 1990.
As with most industries, the 80-20 rule applies to the world of retail; high-value customers make up a large percentage of most brands’ sales.
Your customer base should be analyzed for not only your best customers but those with potential to become a best customer in the future. As you look to shift your investments to better serve your current and potential best customers, here are a few best practices to keep in mind:
- Solve pain points that have the highest impact: Pairing analytical techniques such as potential value models with customer experience solutions will allow you reach future best customers and not just the ones spending the most today. For example, if your data shows a pain point affecting only 20 percent of customers, you would need to look at the composition of this customer group (with specific attention to best and potential best customers) to understand the impact of solving this pain point.
- Foster loyalty of your best and next-best customers through personalization: LoyaltyOne’s new “CX: Intention vs. Impact” report found that 76 percent of customers felt that receiving personalized discount offers based on their purchase history was important. Unfortunately, just 38 percent of companies said they currently give customers personalized offers or promotions via their mobile app, and less than half (48 percent) engage with customers via e-mail during the pre-purchase phase.
- Continue the relationship post-purchase: Customer listening is crucial to improving the shopper experience, but just 42 percent of retailers reported that they collect customer feedback based on the shopper experience. Loyalty programs offer an excellent chance to solicit feedback and gain insight on the areas that can benefit most from improvements.
- Don’t forget to measure: Your survey data and other metrics from your loyalty program should be used to measure the impact of your personalized offers. Introduce personalization into your post-purchase interactions with your highest potential customers for the best results and maximum ROI.
- The Importance Of Prioritizing High(Er)-Value Customers – COLLOQUY
- CX Intention Vs Impact: Making Sense Of The Ever-Evolving Retail Shopper Journey – COLLOQUY
DISCUSSION QUESTIONS: What advice do you have for retailers targeting current and potential best customers? Are there aspects of the customer prioritization process that retailers continually shortchange?