As a business, your customers are the one thing that will keep everything going around for you. While it’s well and good to get a new customer into your database, too often, business owners make the mistake of forgetting their loyal customers. You know, the ones who have spent hundreds or even thousands on your site, who have recommended your business to others and who have helped you grow.
So, let’s put an end to that forgotten loyal customer list, shall we?
To help your loyal customers stay loyal, there’s one thing we recommend above all else; make them VIPS.
This way, you can send them targeted discounts, special offers, gifts and even some behind-the-scenes extras to show them that you really care about their support.
How do you discover your VIPS? We’ve put together a guide to help you out.
Segment based on recency, frequency and monetary value
Before the segmentation work begins, you need to decide what makes someone a VIP. Some ways you can do this include:
By Recency: This method is less common, but it allows you to create a VIP list based on when someone purchased from you last. For example, after they place an order, they can unlock VIP status for two weeks following. This strategy can help you to generate second, third and even fourth orders from them in a given timeframe.
By Frequency: This one is much more common and breaks down your VIP list by how many times they’ve returned to your business. It can thank them for shopping time and time again and does not consider spending value. It’s great for brands with items of lower value.
By Monetary Value: This method speaks for itself and determines if someone is a VIP based on how much they have spent. It is ideal for businesses with high-ticket items, as it rewards the value of orders rather than the amount of orders.
Regardless of which one you choose, you can segment customers in Klaviyo using all three of these options. All of these segments rely on a customer’s past actions, making it a more controllable way to determine your most important customers.
Segment based on predictive analysis
If you’re using Kalviyo, you can use a fancy tool known as predictive analysis. This tool essentially allows Klaviyo to guess if your customer will become a loyal shopper in the future. It works very similarly to the segmentation above, however, it predicts how many times they will purchase, what they will spend and when they will place orders. It’s a great way to get in the door early and show your customers that you see them as a valuable asset to your business’ growth.
Segment based on Customer Lifetime Value
Like predictive analysis, lifetime value lets you determine your VIPs based on how much Klaviyo anticipates your customers will spend throughout their relationship with your brand. This is based on other customer’s behaviours as well as the purchases the customer in question has already made. This tool can help you pick up on big spenders well in advance. In the long-term, making them VIPs can also help form a strong bond, which may even increase how much they intend to spend in future.
We are here to help you understand the power of segmenting
Segmentation is a powerful tool that can make a monumental difference to your business, especially when your VIPs are considered. Find out more about how segmentation can drive your email success by booking a free 15-minute consultation with our team.