It goes without saying that all your customers are valuable. However, some of them display higher customer loyalty levels. By focusing on those customers, you can substantially increase your retention levels and revenues. Therefore, continue reading to find out how to identify those customers and how to keep them:
One of the most obvious ways to identify your most valuable customers is to calculate who brings you the most revenues. On the one hand, this metric is quite useful as it takes into consideration not only the sales a customer brings, but also the expenses or costs you experience to fulfil their order. On the other hand, revenues are only one small part of the whole picture and should, therefore, be combined with the other factors below. In addition, always have in mind the timing of the revenues! The sale of some products tends to be more seasonal, which might skew your overall results.
2. Word of mouth
If you have been following our blog, you already know how important customer reviews are. Therefore, if a customer is willing to write reviews for your company and products, you should make sure that you retain them as customers.
In addition, if a customer is a conversation starter on forums and is a fan of your company on social media, then you should prioritize those customers. Put in the time and effort to turn them from loyal customers into brand ambassadors! In fact, word of mouth is a very powerful tool for increasing your brand awareness and gaining more customers.
Furthermore, identify any customers who might be influencers on social media and consider how to not only keep them, but to encourage them to share their impressions about your products with their followers and friends.
3. Retention vs. acquisition
It is a well-known fact that retaining an existing customer is cheaper for your company than acquiring a new one. Nevertheless, lots of companies make the mistake of focusing only on increasing their customer numbers. Show appreciation towards your existing customers and make them feel valued. By doing so, you increase the chances of them repurchasing from you and leaving you positive feedback. Furthermore, those customers become more likely to order add-on products and services.
4. Loyalty programs
Another way to identify who your most valuable customers are is through the help of loyalty programs. In a study from 2017, Aaron, Allen & Associates found out that loyalty programs increase the customer’s lifetime value by 30%, as they visit your store more often and spend more. However, don’t make a loyalty program the only reason why your customers keep coming back! Excel with your products, services and the customer experience you give them and watch them come back again and again.
By following these simple 4 tips, you can easily identify your most valuable customers. Thus, you can pour your efforts into keeping those customers for more business and higher profits.