blank

When to Let Go: Ensuring You Are Focusing On the Best Customers

Blog » Business » When to Let Go: Ensuring You Are Focusing On the Best Customers

ensuring you are focusing on best customers BLOG

As a leader in marketing, one of the toughest decisions you face is understanding when to pivot your focus to your best customers.

For directors and CMOs, making strategic decisions about which customer segments to prioritize can significantly impact your company’s growth and brand image.

Here’s how you can ensure that your marketing resources are dedicated to your best customers.

Identifying Your Best Customers

Your best customers are not just those who buy the most but also those who engage, advocate, and resonate with your brand’s values.

To start, you should define your best customers by more than demographics—understand their behavior, needs, and how they interact with your brand.

1) Measuring Engagement and Loyalty

Engagement levels are a clear indicator of who your best customers might be. Try analyzing various engagement metrics, both online and offline. These metrics help you understand who is interacting with your brand and how deeply they’re engaged.

Remember, your best customers are often your most engaged customers.

Here are some key metrics to consider:

Online Engagement Metrics

  1. Website Traffic and Behavior: Look at how often customers visit your website, the pages they view, and the time they spend on each page. Tools like Hotjar can provide insights into user behavior and engagement. Just watch out … their recordings and heatmaps are addictive!hotjar-b-squared-media-heat-map-best-customers-example
  2. Social Media Interactions: Track likes, shares, comments, and direct messages on platforms like Facebook, Instagram, and Twitter (X). Higher engagement rates often indicate strong loyalty to your brand.
  3. Email Engagement: Monitor open rates, click-through rates, and conversion rates from your email campaigns. High engagement here suggests that customers are interested in your content and offerings. (Even better if you have a customer-only newsletter!)
  4. Online Reviews and Ratings: Pay attention to what customers are saying about your brand on review sites and social media. Positive reviews and high ratings are indicators of satisfied and engaged customers.

Offline Engagement Metrics

  1. Customer Feedback and Surveys: Conduct regular surveys or feedback sessions with customers. High participation rates and positive feedback can indicate strong customer engagement. At B Squared Media, we do this quarterly.b-squared-media-survey-best-customers
  2. Participation in Events or Workshops: Monitor attendance and participation in any events, workshops, or seminars your brand organizes. Engaged customers are more likely to participate actively.
  3. Loyalty Program Engagement: If you have a loyalty program, track how often customers use their loyalty cards, redeem points, or take advantage of special offers.
  4. Sales and Interaction History: Review purchase history and interactions with sales or customer service. Repeat purchases and positive interactions are good indicators of engagement.
  5. Referrals: Track how often your customers refer others to your business. A high referral rate suggests that customers are not only satisfied but also actively promoting your brand.

Combining Online and Offline Data

For the most comprehensive view, combine online and offline metrics.

This holistic approach provides a more accurate picture of customer engagement across all touchpoints with your brand. By monitoring these metrics regularly, you can identify your best customers and tailor your marketing and service strategies to better meet their needs and preferences.

2) Assessing Customer Value

It goes without saying, the best customers significantly contribute to your ROI.

They are not just one-time buyers but repeat customers who add to your business’s bottom line. Regularly evaluate which customer segments are the most profitable and adjust your focus accordingly.

Customer Lifetime Value (CLV) is crucial for identifying your best customers because it represents the total worth to a business of a customer over the whole period of their relationship.

Here’s a more detailed look at CLV:

How to Calculate CLV

There are various methods to calculate CLV, but a basic and commonly used formula is:

CLV = Average Purchase Value x Average Purchase Frequency Rate x Average Customer Lifespan

calculation clv forumla[Image Source]

  1. Average Purchase Value: Calculate this by dividing your company’s total revenue in a period by the number of purchases in that period.
  2. Average Purchase Frequency Rate: This is the number of purchases divided by the number of unique customers who made purchases during that period.
  3. Average Customer Lifespan: Estimate the average number of years a customer continues purchasing from your business.

An alternative method incorporates profit margins and discount rates for a more nuanced understanding, but the basic formula offers a good starting point.

CLV in Identifying Best Customers

  1. Segmentation: By calculating CLV for different customer segments, you can identify which segments are most profitable over the long term. For instance, we do this by service type: advertising, social media management, or social media customer care.
  2. Resource Allocation: Knowing the CLV helps in directing marketing and customer service resources towards those segments that offer the highest return.
  3. Personalization and Retention: Understanding the CLV can guide how you personalize interactions and retention strategies for high-value customers, ensuring they remain engaged and loyal.
  4. Predictive Analysis: CLV isn’t just about understanding current value; it’s also a predictive tool that can help forecast future profitability and guide long-term business strategy.

In sum, CLV is a vital metric in understanding the long-term value of different customer segments. It provides deeper insights into where to focus efforts for maximum profitability and helps in crafting more effective and targeted customer engagement strategies.

By regularly evaluating and understanding CLV, businesses can more effectively identify and nurture their best customers, leading to sustained growth and success.

Adapting to Market Changes

The profile of your best customers today might not be the same tomorrow. Especially now, you must stay on top market trends and adapt your customer profile accordingly.

Here are some tactical ways to achieve this:

1) Market Research

  1. Conduct Surveys and Polls: Regularly survey your customers to understand their evolving needs and preferences. Use tools like SurveyMonkey or Google Forms to gather insights.
  2. Industry Reports and Publications: Stay informed by reading industry reports, journals, and publications. Industry blogs can be invaluable resources.
  3. Competitor Analysis: Keep an eye on your competitors. Tools like SEMrush or Ahrefs can help you understand their strategies and identify emerging trends in the market.

2) Data Analytics and Best Customer Feedback

  • Social Media Listening: Use tools like Sprout Social or Agorapulse to monitor social conversations about your brand and industry. This can reveal emerging trends and customer sentiments.
  • Website Analytics: Analyze user behavior on your website. Tools like Google Analytics can help identify trends in customer interests based on their browsing patterns.
  • Customer Reviews: Regularly review customer feedback on platforms like Yelp, Google, or Trustpilot. This can provide real-time insights into customer satisfaction and emerging needs.trustpilot Increase conversions and sales on your site
    [Image Source]

3) Engagement and Interaction

  • Social Media Engagement: As mentioned above, engage with your audience on social media. Host Q&A sessions, polls, or live videos to gather direct feedback and understand their current interests.
  • Networking and Events: Attend industry conferences, webinars, or networking events. These can be great opportunities to learn about new trends and gather insights from peers and experts.
  • Customer Advisory Boards: Create a group of customer representatives to provide regular feedback on your products/services and insights into market trends.

4) Technological Advancements

  • Adopt New Technologies: Stay informed about technological advancements that could impact customer behavior. For example, if augmented reality (AR) is becoming popular in your industry, consider how it might change customer expectations.
  • E-commerce Trends: For retail businesses, keeping up with the latest e-commerce trends like mobile shopping, AI recommendations, or virtual try-ons can be crucial.

In essence, by combining market research, data analytics, direct customer engagement, and staying informed about technological advancements, you can effectively adapt your customer profiles to align with market trends.

Utilizing Data for Insights

Leverage analytics to gain a deep understanding of your customer’s behavior and preferences. Data-driven insights are invaluable in pinpointing who your best customers are and how to effectively engage with them.

Here are some tactical approaches to achieve this:

1) Customer Data Collection

  • Use CRM Systems: Implement a Customer Relationship Management (CRM) system like Salesforce or HubSpot to collect and analyze customer data, including purchase history, interaction logs, and preferences.
  • Integrate Analytics Tools: Utilize web analytics tools like Google Analytics to track online behavior and customer journey on your website.
  • Social Media Analytics: We notate best customers through our social media customer care program. We also spot trolls, giving our clients a leg-up on avoiding PR crises.

2) Data Analysis and Segmentation

  • Segment Your Customers: Use the collected data to segment your customers based on various criteria like demographics, buying behavior, and engagement levels.
  • Predictive Analytics: Employ predictive analytics tools to forecast future buying behaviors and preferences based on historical data.
  • Customer Lifetime Value (CLV) Calculation: As mentioned, calculate the CLV of different segments to identify which groups are most valuable to your business.

3) Personalization and Targeting

  • Personalized Marketing Campaigns: Use data insights to create personalized marketing campaigns. Tools like Keap (this is what we use!) can help in crafting targeted email campaigns based on customer preferences and behaviors.
  • Dynamic Content: Implement dynamic content on your website or in your emails that changes based on the user’s profile or past interactions with your brand.
  • Retargeting Strategies: Use retargeting ads to re-engage customers who have shown interest in your products but have not made a purchase.

4) Feedback Loops and Continuous Learning

  • A/B Testing: Regularly conduct A/B testing on your website, emails, and ads to see what resonates best with your audience.
  • Customer Feedback Surveys: Use surveys to gather direct feedback from customers and adjust your strategies based on their responses.
  • Continuous Monitoring and Adjustments: Regularly review your data-driven strategies and make adjustments as necessary to improve engagement and effectiveness.

In summary, utilizing data-driven insights involves collecting comprehensive customer data, analyzing and segmenting this data to understand different customer profiles, and then using these insights to personalize engagement and continuously adapt strategies.

This approach not only helps in pinpointing your best customers but also in creating more effective and targeted engagement strategies to foster loyalty and increase conversions.

Your Best Customers: Focusing on Quality Over Quantity

In marketing, the focus should always be on quality over quantity. By honing in on your best customers, you ensure that your marketing efforts are not only effective but also cost-efficient.

Stay flexible, data-informed, and customer-focused to consistently attract and retain the best customers, and watch as they become your brand’s most powerful advocates.

 

FAQs on engaging with your best customers:

  1. How Do You Identify Your Best Customers? Most of all, data helps identify the best.  Look for customers who engage most, make frequent purchases, and have the highest Customer Lifetime Value (CLV). Next, analyze purchase history, engagement metrics, and customer feedback. Doing this helps pinpoint the customer segments that are most profitable and loyal.
  2. What Are the Key Best Customer Metrics to Focus On? Key metrics include Customer Lifetime Value (CLV), purchase frequency, average order value, website traffic and behavior, social media engagement, email open and click-through rates, and customer feedback. These metrics provide insights into customer loyalty, purchasing habits, and overall engagement with your brand.
  3. How Can Small Businesses Keep Track of Best Customers? Small businesses can start by using affordable or free analytics tools like Google Analytics. Additionally, focusing on key metrics such as website traffic, social media engagement, and customer feedback can provide valuable insights without the need for large investments in advanced tools.
The following two tabs change content below.
Avatar
Brooke B. Sellas is an award-winning Customer Marketing Strategist and the CEO & Founder of B Squared Media. Her book, Conversations That Connect has been recognized nationally and is required reading for a Customer Experience class at NSU. Brooke's influence in digital marketing is not just about her accomplishments but also about her unwavering commitment to elevating the industry standard of digital customer experience and customer marketing.
Conversations That Connect
Get Subscriber-Only Gifts!
Enter your info below & get our blog posts delivered to your inbox along with free, subscriber-only gifts — like personal hacks, templates, tools, and PDFs.
This field is for validation purposes and should be left unchanged.

Category: Business
Tags: B Squared Media, best customers, Brooke B. Sellas, Brooke Sellas, customer data, customer data collection, customer engagement, customer lifetime value (CLV), customer loyalty, customer value, voice of customer data
Get Subscriber-Only Gifts!
Enter your info below & get our blog posts delivered to your inbox along with free, subscriber-only gifts — like personal hacks, templates, tools, and PDFs.
This field is for validation purposes and should be left unchanged.

You might also like
Sidebar Founding Member Badge
sidebar banner badge

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

CommentLuv badge