Every customer is essential to your business. However, consumers with a greater impact on your bottom line are objectively more valuable. It can be tough to identify your higher-paying customers and where to find them. Fortunately, there are tools you can use to find these shoppers and create a retention marketing plan that engages them.
In this article, we’ll explain why you may want to identify your highest-spending customers and how you can market to them. We’ll then recommend two tools to find these valuable consumers. Let’s get started!
Why Your Highest-Spending Customers Are Important for Your Business
Existing customers are the most valuable to your business. In fact, 60 to 70% of a company’s business comes from repeat buyers. Current clients are also 50% more likely to try new products and spend 31% more.
Furthermore, marketing to your current clientele is more cost effective than marketing to potential clients. Studies show that acquiring new buyers costs approximately five times more than retaining them.
Moreover, higher-spending customers usually have some sense of brand loyalty. If a consumer regularly buys from your store, they can see the value in your products. As such, they might be more likely to promote your business through word of mouth or shared promotions.
How to Market to High-Value Customers
High-value customers already buy from your store. However, marketing materials can increase these consumers’ spending and strengthen their relationship with your brand. Therefore, it’s worth devising targeted strategies for these valuable shoppers.
Creating a top-notch customer experience can help you market to your high-value clients. Make sure your clientele feel welcome and appreciated so that they will be more likely to buy from you again.
A simple and direct way to do this is through personalized email marketing. Once you build your email list, you can send promotions, exclusive content, and newsletters straight to consumers. We also recommend segmenting your email marketing so that customers will receive the most relevant marketing messages for them.
You could also design a customer loyalty program to incentivize big spenders. This setup can reward consumers who purchase your products regularly by offering them unique or discounted goods.
Sephora, for example, has a tiered Beauty Insider rewards program that is free to join and gifts shoppers with discounts and free shipping. Consumers who spend more money receive larger and more frequent rewards:
Furthermore, setting up a referral program is another way to reward clients. It’s also a very cost-effective method for attracting new business.
Existing customers can introduce friends to your business via referral links with discounts. Then, once the new consumer uses the link to complete a purchase, the referrer receives a voucher as well:
Finally, soliciting customer feedback can make your patrons feel valued. This consumer input can reveal strengths and weaknesses in your business model.
You can create a short survey on your website for users to rate your company, products, and online presence. Then, you can adjust your offerings accordingly to fit your customers’ expectations better.
How to Find Your Highest-Spending Customers (2 Methods)
1. Google Analytics
Google Analytics uses machine learning to help business owners gain insights into customers and their behavior:
You can access various reports with Google Analytics, including audience, acquisition, behavior, conversion, and user flow reporting. These different data points offer a thorough understanding of how users arrive and interact with your site, as well as detailed demographic information.
For example, you use the Demographics and Interests reports to identify high-value customers. Navigate to Audience > Demographics in the Reports section. Then, filter based on gender and age to see how consumer interests differ based on these criteria:
Image source: Google Analytics.ie
These reports also include data about conversions, engagement, and overall revenue. Armed with this data, you can start devising marketing campaigns for particular demographics:
Image source: Google Support
For example, you might identify that people aged 18-24 generate the most revenue for your business. Then, you could create targeted ads across Facebook and Instagram for that age demographic.
Furthermore, navigating to the Interests tab can identify conversions from users that belong to different categories. People are grouped by their interests, such as “Gamers” or “Music and TV Lovers.” That data can also inform the style of your marketing strategies.
Mailchimp is a comprehensive email marketing tool that automates email campaigns and provides in-depth analytics for measuring customer behaviors:
It uses predictive customer lifetime values (CLV) to analyze purchasing behavior, predict CLV, and estimate buyers’ likelihood to purchase again. The platform then uses this data to group audiences into pre-built segments for personalized marketing messages.
You can find this data in your Mailchimp account by navigating to Audience > Audience dashboard and scrolling down to E-commerce. You’ll then be able to see different classifications of your consumers:
Image source: Mailchimp
Here, you’ll find your customers classified as High, Moderate, and Low value. You can then market to these distinct groups with a single click.
Furthermore, you can use the lookalike audience finder to target new buyers with similar attributes to your current audience. This tool uses your current consumer data to reach new buyers via postcards and social media ads.
Retaining high-value customers is less expensive than finding new ones. If you’re struggling with shopper retention, we recommend trying Google Analytics and Mailchimp to identify your best customers. Then, you can tailor your marketing campaigns based on your results.
Do you have any questions about finding your highest-spending customers? Let us know in the comments section below!