You got into business because you had a passion for what you do and a desire to use your product or service to solve the needs of others. All others. You believe each and every one of your customers is important to your business and that it is your job to serve them.
Turns out, that’s not as true as the “Everyone Is Equal” fairies would have you believe.
The truth is – not all customers are created equally, at least not in the eyes of your bottom line. There are customers sitting in your database right now who generate a higher return on investment (ROI), who buy more products and make purchases more frequently, and who convert better and at less cost than others. These are your best customers. You want more of these customers.
Wouldn’t it be nice if you could identify your best customers and market to them more often?
Wouldn’t you love to present them with more targeted messaging or special offers to encourage their next purchase?
You can generate more business from the customers most significant to your ROI, but first you need to identify who they are. Below we’ll walk you through how to do it.
Mine Your Customer Data for Gold
You want to identify your “best customers,” but what does that mean to you? It could mean considering factors like:
- Lifetime value: The total dollar amount a customer will spend with you over the years.
- Longevity: How long a customer maintains a relationship with your brand.
- Purchase value: Customers who purchase your highest-value or highest-dollar items.
- Social value: Customers who increase your social footprint by talking about you, sharing your brand with their friends, generating referrals or leaving positive online reviews.
- Goal value: Customers who perform a desired action, whether it be purchasing a product or signing up for an email newsletter.
To identify these customers, start by mining your customer database to get a sense of what these customers look like and the features, demographics and interests they have in common.
Look at customer records, sales receipts, service requests or any market research you’ve already done to identify patterns.
Talk to your Sales People. Ask what they’re seeing, the questions they answer most and which types of products customers are most interested in.
Use the Web to conduct social research to see who is interacting with your site and increasing your amplification.
Check your website analytics to learn who your audience members are, how they reach your site and what their engagement is with your site and your content.
Survey your existing customers and do interviews with key consumers to develop a better understanding of who they are and what they respond to.
Once you have all of your information, you can begin to create a loose customer portrait of who your best customer is and the type of customer you want to attract.
Your Best Mining Tool
Once you’ve created your initial customer portrait and identified a sample representative of your best customers, you’re ready to do the heavy lifting of persona creation and build your target audience.
After gleaning this initial knowledge one option is to purchase third-party data to quickly obtain complete knowledge about your best customers. Many data partners like Acxiom offer portrait reports, designed to analyze hundreds of different variables and elements about your audience to give you the demographics and psychographics of your best customers without overwhelming you with information.
Below are examples of some common, helpful reports.
A Look-Alike Report usually applies important demographic elements including age, gender, race, education, income, marital status, family size, children and home ownership to help you understand your success in reaching these people. Look-Alike Reporting will give you a demographic portrait of your audience to help you understand who they are and what they look like, noting the markets where you are likely to be most successful.
Segmentation Reports break your audience into identifiable segments, again honing in on who your best customers are. For example, this report may identify your biggest customer segments as Rural Parents, Persistent & Productive and Thrifty & Active. This type of naming convention immediately helps you to picture who these people are when trying to market to them. It’s like putting a face to a name.
To learn more about identifying your best customers, increasing leads and generating more revenue watch for future posts and download our free Comprehensive Guide to New Leads and Better Customers.
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