This long-standing axiom is a generally accepted truth – 80% of your business comes from 20% of your customers.
But what if you could move that needle to 25-75%, or even 30-70%? The results would be earth-shattering for you in terms of profits and ROI. And it turns out, the answer to this puzzle is not too difficult to achieve for those merchants willing to embrace a new vision of customer loyalty.
So how are successful merchants finding inventive new ways to break through the old norms and grow their “loyal, best-customer” segment to 25% or even 30%?
The High-Value Customer Strategy
Business should work with their marketing team to direct campaigns that convert valuable customers (“Can’t Lose”, “At Risk” and “Needs Attention”) to “most valuable” customers by encouraging these customers to make high value purchases more frequently, and to become more recent customers. In addition, they promote marketing campaigns directed to the possibly valuable customers (lower right quadrant) to convert these recent-buying customers into more frequent and high value buying customers.
By using customers’ buying behavior data, even smaller merchants can implement a small-scale version of big-store analysis to identify important characteristics that predict whether a prospective customer will also be a most valuable customer. These characteristics can be used to mine leads for prospective most valuable customers, and cultivate them for greater loyalty, higher sales revenue and more return visits.
An Easy-To-Implement Solution is at Hand
This is the core mission of Customer Loyalty Acclerator’s (CLA) cash-reward loyalty program. CLA helps you to identify and communicate with customers that are either already “high-value” or have good potential to become so. Then, CLA helps you to incentivizes them in an innovative new way that rewards return visits and greater revenue growth, and thus a higher ROI. It’s really that simple, and even smaller merchants with 1-5 locations can utilize the same kind of customer-growth strategies employed successfully by retail leaders like Kohl’s (the Kohl’s Cash program).
Cash-rewards program like Kohl’s Cash are the new reality in cultivating and retaining retail customer loyalty. “The days of cards offering 10 points per dollar or a 1% value proposition are over. The future is all about relevance and aligning the program’s value to the customer,” according to Precima President Brian Ross, a leading global retail strategy and analytics company. And, cash-rewards programs have a 70% higher loyalty program sign up rate than points-based programs.
The Customer Loyalty Accelerator is available with a 30-Day Free Trial (and a 4-Month BOOSTER Package!) to merchants using the Clover and Shopify POS platforms in their app markets.