When asked what customers are the most valuable, the answer is surprisingly not all of them. Your brand’s most loyal customers, roughly 20% of your entire customer base, are actually your most valuable. Sure, 20% seems small, but those customers account for 80% of a brands total revenue and 72% of total store visits as reported by MarketingProfs. To reinforce the fact that your most loyal customers are also the most valuable, they spend 10 times more than the average customer. See why we’re making a fuss? Because loyal customers are our bread and butter.
Your brand’s loyal customers are your sweet spot. In looking at the lifetime value of a customer, MarketingProfs found that loyal customers have a greater value due to the fact that they spend more over time and generate more revenue. According to CMS Wire, by looking at this lifetime value, you can evaluate the best way to market “exclusively to their worth.” This exclusivity can be achieved through a customer centric approach. By using customer data to better understand and segment your customers by lifetime value, you can identify your best ones. Coming up with products and services to enhance your brand’s experience for these customer is a concrete method to help become customer centric. You have the potential to increase sales by 17% if you choose to give your loyal customers some extra attention.
We aren’t saying that you should discount the “average” customer. In fact, there are ways to gain loyal customers that were once “average.” Perhaps the most efficient way to turn “average” customers into loyal ones is through a digital loyalty program. MarketingProfs states, “The right digital loyalty program lets you easily store all your customers’ info, and then target customer groups and persuade them to come back.” Communicating with customers to bring them back to your store over time can help increase their visits and result in a potentially loyal customer. Digital loyalty programs can actually account for 12-44% increase in overall store visits from members. By turning the “average” customer into a loyal customer, you also increase the probability of additional sales by 60-70%.
Loyal customers are the most valuable to your brand because of the revenue they generate along with positive sentiments. After all, why else would they be loyal if they didn’t like you? To make sure you aren’t leaving any extra revenue on the side, focus on your loyal customers and thank them for all they do.