previous icon Back to blog
Jan 22, 2019
4 minutes read

The 80/20 rule: Who are your loyal customers?

The “80/20 Rule” as it is frequently called today, is an incredible tool for growing your business. If you can figure out which 20% of your time produces 80% of your business’ results, you can spend more time on those activities and less time on others. Likewise, by identifying the characteristics of the top 20% of your customers (who represent 80% of your sales), you can find more customers like them and dramatically grow your sales. However, many companies invest more in attracting new customers than retaining loyal customers. How is it that we no longer spoil loyal customers? Imagine what encouraging loyal customers can mean for your conversion! But how do you find out who your loyal customers are?

Stimulate loyal customers vs new customers

You’ve heard it before. It’s cheaper to get your existing customers to make a repeat purchase than it is to find new customers, and it remains true for many businesses. When was the last time you made an effort to re-engage customers to get them to come back. Well now is a good time to build that customer retention strategy.

Your current customer base is the best asset your business has. Customers already know your brand, they know your products, and they appreciate your service. Similarly, you already know more about them, and you can use this data to personalise their experience.

Focusing your time and energy on improving the experience for this group as oppose to always trying to find new customers can be a powerful way to supercharge revenues. But how do you effectively respond to that? By responding to the needs of the customer, you ensure that the customer feels more familiar with your brand. You build up more and more with each interaction so that it really becomes a relationship. The stronger the relationship becomes, the more a customer will spend, and the more loyal they will become.

What is striking, however, is that on average only 25% to 35% of the marketing budget is spent on loyal customers. The majority of the marketing budget is spent on attracting new customers. Doesn't loyal customers deserve more attention?

Recognise loyal customers

Loyal customers deserve more attention. but who are my loyal customers? This used to be easy to determine. If a customer had made several purchases in the grocery store on the corner for example, he or she was soon recognised as a loyal customer. Nowadays we are dealing with a whole spectrum of possibilities. For example, a customer can make purchases online and offline, in multiple stores. We have loyalty cards, reactions to campaigns, app use, etc. All aspects that we would like to take (and have to take) in the weighing of loyalty.

Loyalty can not be determined by looking at one source. Loyalty is the sum of all data sources in which customer data live. This makes it difficult. How do you gain insight into customers if you need aspects from different sources?

360 ° customer view

A Customer Data Platform (CDP) solves this problem. A CDP ensures that you can combine, add and analyse information from different sources. By linking the important sources for your brand or company, you get one clear profile per customer. This is the 360 ​​° customer view. A profile that not only combines customer data, but also shows what actions a customer undertakes. For example: a customer first buys a product offline, then responds to a mobile campaign, and then buys a product online. We store all these activities of the customer and we can use them to determine whether we find the customer loyal. 

With preset standards we can give each of the activities a value. This value counts up with the profile. For example, if a customer exceeds 100 points, we can label him or her as loyal. All customers with more than 100 points are brought together in the "loyal customers" segment. This segment can give you that extra attention that loyal customers deserve.

Be creative and reward your customers with relevant and personal campaigns. Think of all the Omni-channel communication possibilities that are available. For example, use a discount code that only applies to loyal customers. If they don't respond to email, send an SMS with a landing page to let them know that a nice promotion is waiting for them. This gives the customer "just that little extra" which makes it feel like a relationship. All of this creates, analyses and automates via your base: The Customer Data Platform. 

In a nutshell

Loyal customers don't always get the attention they deserve. That's because recognising loyal customers is difficult. A Customer Data Platform ensures that you really get to know your customers. Do not limit your view to a single data source, but include all important elements from different data sources. This shows you who your loyal customers are. These are the customers that you can get more from. Cherish them, and encourage them to make more purchases with extra nice promotions and relevant campaigns. Because your CDP is the basis, you can use all omni-channel marketing channels to give your loyal customers the customer journey they deserve.

Would you like to know more about the possibilities of a Customer Data Platform?

CDP
Was this article interesting?
Share it!
CM.com
connects tens of thousands of companies with millions of consumers via their mobile phone each day. Behind the scenes, from our innovative platform, CM.com makes sure companies can use these millions of messages, phone calls and payments to become part of people’s lives.

Latest articles

Conversational AI Cloud web conversations blog woman chatting chatbot
Mar 11, 2024 • Chatbots

6 steps to MSP profitability with AI Chatbots

As the Managed Service Provider (MSP) landscape continues to evolve, staying ahead means embracing innovative solutions that not only enhance efficiency but also elevate customer service to new heights. Enter AI Chatbots from CM.com – a game-changing tool that can revolutionise how MSPs interact with clients. In this blog, we’ll provide you with a comprehensive roadmap consisting of six steps to boost profitability using AI Chatbots from CM.com.

WhatsApp vs Facebook Messenger
Feb 12, 2024 • Instant Messaging

WhatsApp vs Facebook Messenger: Which messaging channel is best for what?

WhatsApp and Facebook Messenger are both established messaging channels for customer engagement, but what are the differences? Lets look at what the advantages are of each channel and which situations call for which channel. Let's dive in.

drive-engagement-and-convert-your-conversations-with-whatsapp-carousel
Feb 05, 2024 • WhatsApp

Drive engagement and convert your conversations with WhatsApp Carousel

Are you talking to your customers on WhatsApp? You really should! WhatsApp Business Platform, the business communication platform of one of the most popular messaging channels in the world today, has a wide selection of powerful engagement tools to enhance customer communication and boost sales. And they've added another innovative feature under their belt: WhatsApp Carousel.

Ads That Click to WhatsApp
Feb 05, 2024 • Marketing

Ads that click to WhatsApp: What are they and what are the benefits?

Successful marketing means creating personal and conversational experiences for your customers. And what better place to meaningfully connect to your customers than on their favourite social media channels such as Facebook, Instagram and WhatsApp? With ads that click to WhatsApp, aka click-to-chat WhatsApp ads, you can offer your customers the direct and personal engagement that they crave.

customer service research about channels and phone
Jan 15, 2024 • Mobile Service Cloud

What are the most effective customer service channels?

Today's diverse array of communication channels encourages customers to naturally gravitate towards their preferred social platforms and anticipate brands to be readily accessible across these channels. Rarely will customers go out of their way to switch between channels just to reach you; instead, they are likely to opt for a brand that not only provides the desired product but also ensures excellent customer service (on the channel they like most). How easily can your customers reach you via their preferred channel?

digitalizacion-administracion-publica-y-educacion
Jan 12, 2024 • Customer Experience

Experience Elevation: Customer engagement tech trends 2024

As we approach 2024, the ever-evolving landscape of technology continues to shape how customers connect, consume and communicate with businesses. Forrester even predicts customer experience (CX) will improve for the first time in three years, meaning 2024 will be a pivotal year for engagement with every touchpoint becoming a make-or-break opportunity in the customer journey.

whatsapp-business-girl-on-phone
Jan 12, 2024 • Mobile Service Cloud

WhatsApp Business: Making customer service enquiries simple

WhatsApp has experienced over 60% growth year-on-year as a customer service channel. It’s growing fast, but what are the benefits of using WhatsApp Business for customer service? How can customer service agents manage the increasing inbound enquiries via WhatsApp? In this blog, we'll discuss why WhatsApp Business benefits customer service and how to efficiently handle incoming messages with CM.com's Mobile Service Cloud.

Education Technology
Nov 01, 2023 • Conversational AI

How AI Supercharges your Customer Service

Meeting customers' expectations remains the biggest challenge in service. Speed, convenience, and accurate responses are critical to achieving this. With the power of Generative AI, customer questions can be identified, categorised, and resolved more quickly. Plus, your organisation is continuously fed with data to improve the entire customer journey.

payspace customer story
Oct 30, 2023 • Marketing

Enhance your Black Friday SMS Marketing with Pages

In recent years, SMS integration has played a pivotal role in transforming the Black Friday shopping experience. Both retailers and consumers have wholeheartedly embraced SMS as a powerful tool for communicating promotions, exclusive offers, and time-sensitive alerts.

Is this region a better fit for you?
Go
close icon