There is a rumour that at Harrods something like 5% of the customers account for 50% of their revenues. Retailers are only just beginning to gather data on who their most valuable and profitable customers are.
But if this category of customers exist and if the old pareto rule applies (20% accounting for 80% of revenues) can you ever afford to lose them?
At itim we have just developed a ‘VIP app’ for retailers, which allows retailers to engage with their customers.
To keep your customers you need to:
If you do that they will spend more, and a 10% uplift in sales from regular and valuable customers can turn into a 4% uplift in profits………it’s a no brainer. Selling to existing customers should be your first priority as it is always easier than finding new ones.
We believe the best way to engage your customers is through a mobile app. Not the traditional m-commerce apps, but specifically our engagement app, which turns your business into a ‘personal shopper’ for each of your valuable customers.
Clienteling is all about creating a direct chunnel(!)/connection between you and your valuable customers. So that they think ‘it is about them’ (Not you!).