High-value customers are essential players for your overall success. But what makes a buyer high-value? Typically, it’s anyone who is highly engaged with your brand, makes repeat purchases, and spends more than others. These are your top clients, the ones that you can count on liking and commenting on your social media posts. They open up your e-newsletters and provide customer reviews on recent purchases. They are loyal to your brand and should be treated like royalty.
Why? Having dedicated, repeat customers reduces your acquisition costs. It costs more to find a new customer — anywhere between five and twenty fives times more — than it does to retain an existing one. Keeping high-value customers happy will also result in a bigger return on your investment. They are more likely to spread the word about your brand through word-of-mouth marketing. They will also provide valuable feedback, which can help inform future product offerings.
But how do you identify a high-value customer from someone who just made a one-time major purchase with you? Read on to find out.
Look at the Data
Analyzing data is a critical part of identifying who your high-value customers are. This data includes everything from how much a customer has spent to when they made their first purchase. Knowing both of these metrics is valuable as it will suggest who could be a high-value customer. To take the analysis a step further, see what they bought each time and if their shopping cart has changed over time. If a customer makes the same purchase every six months, they may be of lower value than someone who is adding a variety of items to their cart every six months.
These types of data are primarily first-party data, or data that your company collects directly from purchasers and therefore owns. Access to first-party data is becoming increasingly important as the third-party cookie phases out. Because of this, more companies are leaning toward newer data tactics and analytic models such as predictive audiences. This technology utilizes AI and machine learning to make audience predictions based on customer behaviors.
If a customer has consistently added more expensive items to their cart, predictive models can flag this customer as a high-value target for premium product recommendations. Conversely, if a customer regularly makes purchases only during sales, the model might suggest targeted promotions and discounts to encourage more frequent purchases. These insights enable companies to tailor their marketing strategies, optimize inventory management, and enhance customer loyalty and lifetime value.
Survey Your Customers
Conducting surveys is another way to identify high-value customers. This method allows you to gain insights directly from your audience. You can learn everything from what their current pain points are to other brands they prefer. Someone who takes one of your surveys is typically already loyal to your brand. Surveys take time for users, so if they are willing to take the time to complete the survey then their information is valuable.
There are various types of surveys to help you determine who is a high-value customer. One survey is called a Net Promoter Score, or NPS. This survey asks how likely a user will recommend your business to a friend. A high score of 10 means they are very willing to recommend you while a low score means they aren’t likely to recommend. Having a comment box after this question can provide more information as to why they ranked the way they did.
Asking users for their direct input will make these customers feel like their opinions are being heard and validated. If you follow up with users who have suggested or flagged something with a promotion or offer, they will feel even more loyal to your brand.
Note, survey data should be prioritized because it is considered zero-party data. Coming directly from the user themself, this data can deepen the relationship you have with your customers while also providing value to your brand.
Analyze Your Loyalty Program
Those that have signed up and registered for your customer loyalty program have already raised their hand, saying they like your brand. These customers are likely repeat visitors and many may be spending more than your average buyer. As a loyalty rewards member, these customers are also going to advocate for your brand. If they are a member of your brand but not at a competing one, the chances of them returning to your brand are high. They know they will be rewarded by coming back, either by earning points or by using a loyalty promotion.
Some loyalty rewards programs also encourage members to share coupons with others. For example, maybe they will earn a $10 coupon if they share their link with someone else and their friend completes a purchase. This is a new way to think of word-of-mouth marketing, a digital interpretation that can spread your reach and reward your high-value customers.
Take a look at who is in your loyalty program and follow up with those who are repeat customers. Tapping into this audience is yet another way to gain further insights into how your business is doing and what you can improve upon.
Takeaways
By thinking of high-value customers as mini brand ambassadors, you can show up for them in ways that will be of value to them. Give them early access to online sales and invite them to in-store gatherings for private shopping experiences. Send coupons to them regularly, perhaps also including a discount code for them to share with a friend. Send a personalized greeting to them on their birthday via email. All of these actions will help you stand out from any other competitors and demonstrate your allegiance to them.
