Finding Your Biggest Spending Customers for Your Ecommerce Store
You may have heard of the Pareto Principle, or 80/20 rule, which says that 80 percent of a company’s revenue comes from 20 percent of its customers. That means that identifying and paying close attention to your biggest spenders can help you make the best decisions about marketing, customer acquisition, and product lines, which will increase revenue and grow your business.
Why Should You Calculate Your Biggest Spenders?
✓ How much should I be spending to acquire new customers?
✓ How can I tailor products and services to best suit my big spenders?
✓ How much should I spend on customer retention?
✓ What types of customers should I focus marketing on and invest the most time trying to acquire?
Knowing who your big spenders are will also allow you to consistently optimize their shopping experiences so that you don’t run the risk of losing their business. It’s widely known, even to retail novices, that retaining existing customers is much less expensive than acquiring new ones, so it follows that holding onto your biggest spenders is even more crucial. There are lots of ways that you can look after the customers that account for the disproportionately huge chunk of sales in order to show them just how special they are. Here are a few examples:
Make Them a Priority
Don’t Lose Them
How to Calculate Your Biggest Spenders
For each customer, you will need to determine the total amount they spent for a specific time period (use weekly, monthly, or annual figures, whatever makes the most sense for your business). Once you have determined the amount they have spent, you can compare it to your store’s average order value to see which customers are spending more than average amounts.
Cost of Goods
Cost of Additional Services
Glew Makes It Easy to Identify Your Biggest Spenders
As you can see, knowing which of your customers are spending the most on your products is important to your company’s success and profitability. Determining just who those customers are doesn’t have to be a complicated endeavor. With Glew, you are easily able to access reporting and analytics that will tell you everything you need to know about your customers – including how much they spend – so you can make the best decisions for them and for you.
Let Glew help you identify and appreciate your top customers quickly and easily. Try us for free for 7 days.