How can you boost revenue in times of crisis?
Having a customer loyalty system that fits your needs and delivers results helps merchants secure their revenue.
How does the right customer loyalty system help a merchant drive sales?
Indeed, an effective Loyalty Program gives merchants a deep understanding of their customers: their profile, purchasing behavior, and preferences. This allows merchants to tailor their commercial offer and marketing efforts to maximize profitability and generate the volume needed to boost revenue.
Boost revenue through your VIP customers
20% of the most loyal customers generate 80% of a merchant’s revenue — we’ll call them VIP customers. It’s essential to engage these customers with a tailored offer and encourage them to spend in line with their needs and preferences, since they naturally gravitate toward your store. Merchants should invest in this customer segment, as it delivers the highest return.
Turn occasional customers into VIPs
The next step is to work on the “middle” segment — the occasional shoppers (roughly 60% of customers) — so that targeted commercial actions gradually increase their visit frequency and the revenue they generate. The ultimate goal is to move them into the VIP segment. This is where the greatest marketing effort should be focused.
The remaining 20% of customers make up the “fickle” segment — the hardest to retain. These customers respond to aggressive promotional tactics, but the returns are lower, so it’s best to focus on cost-effective marketing actions.
Effectively managing your customer base through a loyalty system and targeted marketing actions enables merchants to boost revenue all year long.
