Increasing the monetary value of current customers to your biz is especially crucial in times when business might be slow. You can increase your existing customers’ value in a multitude of ways.
So why should you focus on developing your existing customer base? It’s simple. Research shows that making a relevant offer to an existing customer has a 60-70% success rate. Conversions for new-to-you customers are much lower (and come at a higher cost).
I believe that if you focus your sales efforts on your existing customer base, your business will be more profitable. Here’s why: Most brands in fashion & accessories make about 70% of their sales with 20% of their customer base. So this 20% (or whatever your actual number may be) is of vital importance to your success. When you increase the value of your top tier customer segments, it will have a multiplying effect on your bottom line.
Let me give you some quick tips:
- Focus on your top 10%
- Focus your attention on those customers with the biggest impact on your bottom-line
- Identify your top 10% and analyze their customer profile & purchase behavior
- Create 3 communication pieces for them. 2 with customer service focus and one with sales focus
- Hyper-personalize your offer
- Tailor your sales offer to each individual customer
- Use customer data to determine ‘next best product’ for each top 10% customer
- Acknowledge current situation but don’t be afraid to sell
- Clean up customer data
- Find and remove duplicate customer accounts
- Identify gaps in your data and brainstorm how you can fill them
- Create an info graphic on how you collect customer data and how you use it
Many brand owners struggle with the concept of customer development and how to implement it in their fashion, accessories or jewelry business. That’s why I’ve created my signature method .The START method is based on my own learnings and over 15 years of experience in marketing and customer development roles for premium and luxury brands in the fashion, automotive and consumer product industries.