The Importance of High Value Customers and How They Can Help Your Store

June 9, 2020

3 – 4 minute read:

Most businesses have seen a steep decline in sales during the Covid-19 lockdown and are struggling to stay afloat. How do you keep revenue up and avoid being one of these companies? The secret lies with your high value customers. They are loyal to your brand turning to you for purchases since they are familiar and trust your store. Read below to find out how to maintain relationships with these customers and the importance they serve.

Identify Your High Value Customers

High value customers are usually loyal and make repeat purchases on your store. They share a connection with your brand and usually bring in the most revenue. For most stores, 20 percent of customers account for 80 percent of the revenue. The main way to identify high value customers is to see which ones have the highest lifetime value for your store and the largest average order value. The easiest way to do that is by using the UI Ave Analytics app. It lets you see all of your customers and filter them in order to quickly find the ones you should be focusing on, and analyze their purchasing behaviour.

It is important to maintain relationships with high value customers since it is also easier to market and sell to them as opposed to getting new clients. These people trust your brand and receive value from the products you sell. Since they already have this connection with your store, they are more likely to fall back on it during the ongoing global pandemic since people are not as willing to try new products.

Keep Them Informed

An easy way to keep existing customers returning to your store is by keeping them informed. This will prevent them from getting frustrated by not knowing if they can still make purchases from your store or if there are any problems with their orders. Most companies’ operations have changed due to COVID-19 and it is important that your customers are kept in the loop.

Social media conversations have not slowed down since before the beginning of the lockdown and this is a great place to reach your customers and answer any questions they may have. Regularly check direct messages and try to reply to all in a timely manner. If customers are experiencing problems with their orders, they are also likely to send an email about it. Dedicate time each day to sorting through emails and replying to as many as possible. This might take a while but it shows customers that your company cares about them during this time and builds their trust.

Many e-commerce stores are also turning to SMS services to stay in touch with customers. From marketing messages to support, text messages are another great way to communicate with your existing and potential customers.

Update Your Marketing Message to Match Their Needs

Changing times call for changing marketing measures. Customers have different needs due to the global pandemic and it is key to match those needs. One common pain point is increased delays in shipping times and fees. One example is to offer temporary free shipping helping alleviate some of these issues your customers are facing. Another effective solution is providing discounts giving people an incentive to choose your store for their orders.

Since the types of products people are buying are changing, so should your efforts. Focus on the products that bring your customers value and the ones that are selling the most. By providing value in a time of need, purchasers will trust your store more and see that you care about them and are trying to solve their needs. Categories such as medical and protective gear, food and beverage, household and gardening items, toys, games, and entertainment products, and health and wellness are increasing in popularity and are a safe bet.

With most people stuck at home for the past couple of months, community conversations and discussions have turned to social media more than ever. These groups help share a sense of belonging when lockdown measures are in place. By creating such an online community, you can tap into your target audience’s existing discussions as well as create new ones. Your brand will become a recognizable face and show that it still cares about its customers even if they can’t show the same support as before. Above all, it’s important to be patient during this time and not get frustrated if people are not as likely to make purchases from you. Try and help your high value customers through this difficult time and they will do the same for you.

Summary:

  • Identify Your High Value Customers
    • 20% of customers account for 80% of revenue 
    • Customers with high lifetime and order values 
    • Use your existing contact assets 
    • People fall back on brands they are familiar with 
  • Keep Them Informed 
    • Less dissatisfaction if customers are informed
    • Provide information about changed operations 
    • Stay in contact on social media and emails 
    • Offer SMS service
  • Update Your Marketing Message to Match Their Needs
    • Offer incentives
    • Focus on the products your customers need
    • Provide value in a time of need
    • Create communities to help people through the pandemic
    • Be patient

External Resources:

https://www.business2community.com/sales-management/sales-advice-during-covid-19-what-to-change-about-selling-02298995
https://customerthink.com/4-tips-for-selling-products-services-during-the-covid-19-pandemic/
https://www.shopify.ca/blog/retail-response-covid-19
https://www.outreach.io/blog/sell-in-a-covid-19-world