Note: This post is based on a webinar we gave: “Bake Retention into your eCommerce Pie.” The webinar recording and presentation can be accessed at the link.
Wining and Dining the Magic 8
For CustomerGauge eCommerce clients, an average of around 8% of customers account for around 48% of revenue – a figure we have dubbed the “Magic 8.”
Since these customers were spending so much in their online stores, you might assume that they are brand advocates. But after segmenting these customers with Net Promoter, our clients tend to find that they are split into the usual mix of Detractors, Passives and Promoters.
It should be a concern to any eCommerce outfit that some of their high value customers are at risk of leaving. But by identifying and segmenting this group, you have an enormous opportunity to rescue your high value Detractors, nurture loyalty among the Passives, and activate advocacy among Promoters.
Here are three tips on how to do it:
1. Segment as many high value customers as possible
Because it is short, demands little effort from your customers, and generally yields a high response rate, Net Promoter is an excellent metric to use.
Any business can implement a Net Promoter survey, but to maximise your response rate by ensuring that your survey is optimised for as many platforms as possible we highly recommend using a specialised software package (such as CustomerGauge). With this kind of software, expect survey response rates of 30%+.
2. Demonstrate to your customers that they are valued
High value customers appreciate being treated like an insider. Ways that you can demonstrate to them that they are valued include:
- Thank you messages: Personal thank you messages that outline what steps you are taking based on their feedback. (This may sound obvious, but you'd be surprised at how many businesses forget basic manners when asking for feedback from their customers).
- VIP service: This may take the form of Club Cards, differentiated service, or newsletters where fans can receive inside information on product updates, special deals, and events - information that they can share with their friends and families.
- Phone calls: A phone call (especially to a Detractor) where issues can be discussed and action plans decided is often enough to completely turn around a struggling relationship.
3. Empower Promoters to activate new customers
Wining and dining Magic 8 Promoters can help deepen your brand's relationship with them, but with a little creative thinking and effort can also bring new customers in with a minimum investment.
One CustomerGauge client sent a branded, personalised thank you email to the top segment of its Promoters by value, along with three vouchers – one for the recipient and the others for him or her to give to friends. This simple gesture gave an impressive sales return – with an average of EUR 40 for every email sent.
Want more information?
This is not a comprehensive list, but is a few ideas to help get eCommerce organisations thinking about ways to improve retention among their high value customers. If you'd like some more information, listen to the webinar for more, or don't hesitate to get in touch with us!