Are you Focusing on the Customers who Truly Matter?
Did you know that the top 30% of your customers often account for 77% of your sales? While this example comes from grocery retail, it’s relevant for almost every segment. The only difference is visiting frequency. For example, loyal department store shoppers might visit 12 times a year, while other segments see fewer visits.
But the principle remains the same: Focus where it matters most.
Here’s how you can make smarter decisions:- Prioritize Inventory for Your Top Shoppers: When stock is tight, focus on high-demand products (A-items) for your most loyal customers—they bring the highest profit.
- Replenish Stores Strategically: Allocate stock to stores with a higher concentration of your best customers—those who consistently pay full price.
- Turn Secondary Shoppers into Loyal Fans: Use basket analysis to identify overlaps between casual and loyal shoppers, then design campaigns to increase repeat visits.
Not all customers are created equal, so stop wasting time chasing the bottom 20% who only shop discounts. Instead, focus on growing your core base of loyal customers—they’re your biggest asset.
What’s worked for you?-
Posted by Brian Hume
22nd November 2024
