#3

Keep and grow the customers you already have.

The best marketing a brand can have is word of mouth

For most brands 10% of customers account for 40% of revenues. These are VIP or 'gold' customers.

A further 30% of customers account for another 20% of revenues. They are what we call regular customers. So, 40% of customers account for 60% of the revenue and probably 90% of the profits of a retailer.

There are 3 points to this analysis.

1. It really hurts a retailer financially if they lose any of these regular and VIP customers. Winning new customers is much harder than retaining valuable customers.

2. Our analysis shows if retailers can get these customers to shop 10% more each year it doubles their profits.

3. These customers are your gateway to new customer acquisitions

Retailers have forgotten the art of CRM. The 'R' (relationship management) being something they can do better than their online competitors, because they can make human contact count.

In our view, retailers need to throw the kitchen sink at customer engagement including but not exclusively offering, subscriptions and memberships, loyalty, credit, improved payment capabilities, personal shopping services,
VIP programmes, gold, silver and bronze services, clever use of vouchers, gift cards, curated ranges and personalised promotions.

itim’s key to success

The customers we want are those that live within easy reach of stores - they are likely to be the stickiest and have the largest lifetime value. Around every branch there are local communities where people aggregate. Partnering with people in your local community will be better and more cost effective than spending money with global media giants. Local is best

In one retailer we discovered they had one million active customers but their lapsed customers were five million. It’s cheaper to revitalise lapsed customers rather than competing for new ones. A change of focus for customer acquisition

Contact us for a complimentary consultation and let us show you what we can do.