As a business owner, you know how important it is to attract customers, gather interest in your products and create a recognizable brand in order to create a successful company. This is a long process that takes a lot of sacrifices, innovation, and quick thinking. While there are many elements that create a successful business by working together, every business owner will admit the most important part is its customers. They wield power to make or break the company, even when they are unaware they are doing it. It is your duty to ensure they are happy with your products and service and, most importantly, that they continue working with you.
Just think about it, you could have the best new product available, the next best thing after the sliced bread, but if you do not have customers, that will all be for nothing. While there wouldn’t be a lot of point in acquiring customers if you don’t have a product, the same goes for having a product without coming up with a plan to attract the customers. To create a successful business, all of the elements need to be functioning together.
Who Are The High-Value Customers?
While it is true that every customer counts, it is also true that some of them bring higher value to the growth of your business. There is a big difference between a typical customer that might purchase your product or service once and the customer that can become one of your best buyers with a little effort. Marketing just about anyone is a great way to find occasional customers, but will that help you discover the high-value customers that will keep using your company? By narrowing your strategy, you will have better luck finding customers who are the right fit for your business, which can help you raise your profits.
In short, a high-value customer is a customer who will have a more significant impact on your business than a traditional user. Usually, they will be repeat customers who bring more profit to you in the long run than the other customers. That might seem hard to believe, but according to the research from Adobe, the top 10% of your high-value customers will use your services three times more than other customers, while your top 1% will be spending up to five times more.
As not all businesses are the same, that is how the definition of high-value customers depends on the sector. In the eCommerce businesses, a high-value customer would be a person that regularly shops high value of your product or service, while for a SaaS company, that would be a bigger account that brings constant traffic.
How Can You Benefit From Finding Who Your High-Value Customers Are?
In order to get your product out there and succeed in your business, you need to understand your consumers and know what you need to do to influence their purchasing decisions. By knowing who your target market is and, most importantly, who your high-value customers are, you will be able to make better-informed decisions about any future projects and align your business model with customer preferences.
Knowing your high-value customers can help you to:
• Plan ahead
• Tailor your products and services
• Develop longer-lasting relationships
• Create a positive feedback loop
In short, knowing who your high-value customers are can make a big difference in improving your sales.
How Can You Find Who Your High-Value Customers Are?
Sometimes it can be hard to notice who your high-value customers are, especially among all the other sales you get. This is why it is necessary to implement different techniques to ensure you don’t miss out on important information.
Implement key performance indicators (KPIs)
You can measure how much value a customer brings to your company by implementing different key performance indicators, from average recurring revenue and purchase frequency to the average order value and customer lifetime value. There are various metrics you can choose from, so make sure you make a decision based on what is best suited for your business.
Most businesses consider their relationship with clients finished as soon as the purchase is completed or the project is done. By cultivating your relationship with clients during your business interaction and continuing after, you can ensure that you create long-term and high-value customers. Customers don’t want to feel expendable, and by following up, you show them they are valuable and that you care about them.
Monitor Your Loyalty Programs
Loyalty programs can be used as an excellent starting point in determining who your high-value customers are. Your loyalty members have already shown interest in your brand and will most likely be repeat customers. According to Forbes, compared to the new customers, your existing customers are 50% more likely to try new products you offer and spend 31% more.
Implement Data Enrichment
While previous methods are an excellent way to discover high-value customers that have already interacted with your business, by using data enrichment, you can even identify them in advance. Data enrichment collects data from internal and external sources, allowing you to create a clearer picture about them and determine if they might become a high-value customer.
By identifying them in advance, you can determine their preferences and requirements and ensure they actually do become high-value customers.
This is all the data you can gather through data enrichment:
• Discover if the users’ email address is connected with any social media platforms
• Determine users’ geolocation through their IP address
• Use device fingerprinting to determine their software and hardware configurations
All these different data enrichment techniques can take the simplest piece of data, such as an email or an IP address, and help you make an educated guess about who your next high-value customers will be.
Every business owner wants to ensure their products reach the right customer, as, without customers willing to purchase their goods or services, they would hardly have any business left to run. Ensuring you get the right kind of customers, especially the high-value ones is a key to ensuring your business stays successful. Follow the tips above to learn how to identify your high-value customers and continue ensuring their requirements are met while developing long-lasting relationships with them.