Court Your Top 10% of Customers

Did you know that 10% of your customers account for 40% of your sales?

According to Business Wire:

An analysis of over 2 million grocery shoppers by Concept Shopping, Inc. shows that the top ten percent of store’s customers visit the store more than twice a week, spend over $39 per visit and represent nearly 40 percent of the store’s total sales.

The study also found that these most valuable shoppers tend to remain very loyal to the store, with 95 percent continuing to shop there throughout the year.

Conversely, only 34 percent of the store’s worst shoppers, those who visit the store less than once a month and spend only $9 per visit, remain customers.

“Shopper churn is a fact of life for every marketer,” said William Young, vice president of sales and marketing for Concept Shopping. “Shopper loyalty continuously ebbs and flows through retail banners and store types, but sorting shoppers by their value helps identify which ones should be courted and which ones can be ignored.”

Bottom line?  Figure out who the top 10% are and court them with private sales, invitation only events, personal shoppers and thank you gifts.