Many companies are shifting their focus to engage customers with higher value and profitability. The goal of engaging high-value customers (HVCs) is to nurture them into becoming loyal power shoppers. Increasing loyalty to a brand this way ensures retention and lifetime value of customers.
HVCs drive a significant portion of a company’s revenues. These customers are not only intensely loyal to a brand, but help promote the brand and its influence as well. Engaging and satisfying these high-value customers will put a company on a path toward greater success.
What Is a High-Value Customer?
Confusing high volume and high-value customers can be easy. However, high volume customers and high-value customers are two different target markets.
High volume customers are those who interact with a brand frequently. Although they may engage with the brand often, it doesn’t necessarily mean that these customers are the most valuable. Often with high volume customers, a brand will see a surge in activity for short periods of time. However, once the excitement fades, so does customer engagement.
High-value customers are those who buy for a reason. These customers look at products, services, and brands as a way to meet a need and satisfy a drive such as status, health or lifestyle. HVCs are customers who are loyal to a brand or company, even in times of financial duress. They will return to a brand and product even when a cheaper alternative is available. For HVCs, the cost is not a priority, and are more focused on having their unique needs addressed. HVCs are also brand promoters and influencers. These are the customers who will share the brand within their social networks.
Focusing specifically on high VALUE customers reflects an understanding of the power that these consumers have. Identifying who the high value customers are and tailoring marketing schemes to satiate these consumers, keeps them happy and ensures the brands’ profit margins.
- Evolve With Customers
Customer habits change and evolve. In turn, the way consumers interact with brands has evolved as well. Instead of fighting this evolution, brands should adapt and keep up with their customers. Part of this evolution includes the introduction of new goods and services and outlets, like online shopping. This development means customers are interested in a wide variety of items at all times. A shift towards items outside a consumer’s regular purchase pattern can indicate consumers are turning into HVCs. Dramatic changes in how customers buy items and spend money can also indicate greater trust and loyalty with a brand. Once the customer has extended the olive branch toward a brand, it is very likely they will shift into the high-value customer category.
- Pay Attention
The data provided by a customer’s recent activity can predict if a customer is high value or becoming high value. Data points such as high clickthrough rate, frequent site visits, and large purchases can indicate a customer as a high-value customer. One way to monitor customer involvement and identify high-value customers is through a triggered marketing campaign. Triggered marketing includes a continuous stream of messages sent to customers based on their shopping activity, browsing history, purchases, etc. Triggered marketing indicates to customers that a brand knows its customers.
- Loyalty Rewards
Loyalty programs are teeming with information about members. Everything from brand preferences and item category to price sensitivity can be found in loyalty member data. Harnessing loyalty data helps brands personalize more towards HVCs. Knowing where, when, why, and how customers engage with a brand, can empower companies to create personalized experiences across multiple channels.
Loyalty programs also remove the barrier between customers and their next purchase. These loyalty programs make customers feel like “power users.” Their actions directly correlate to the experience found with a brand and company.
High-value customers make up the untapped bread and butter for many businesses. Understanding the behavior patterns of high-value customers enables brands to engage and target this niche group of customers. Providing high-value customers with the attention they desire keeps them engaged with the brand and propels companies to further success.