In my last article I mentioned that as much as 5-7 of the customers that visit a store during 6 months, may account for 60% of total store sales, also stating that it is better to be the habit of your customer than their preference. This is most of all relevant for how we work with customer service or even use our marketing funds. Shall the target of our sales and marketing efforts be the person who drops by every time there is a good offer, or shall be use it to build a loyal base of frequent customers?
What will serve us best in the future?
- To increase customer basket with 10%?
- To use good promotions to increase our customer number the next two weeks by 10%?
- To increase the percentage of frequent and loyal customers out of the total customer base from 5% to 6 % or from 6% to 7%?
We all know what dream scenario would be. At the same time we need to realize that we need to have all of the above three goals in mind, prioritizing being the key word.
The former Chairman Suzuki of 7-Eleven Japan once said: “There is no such thing as market saturation. It is only a question of not having enough products to sell”. What he is saying is that if you increase your relevancy, people will come more often, or if you have more relevant products to sell, people will buy more products. Or: Does the definition of a frequent customer “end” with customers who visit our stores 5 times per week or can we imagine having customers visiting our stores 3 times per day, 5 days per week?
It all comes back to how relevant we are for these customers, how well they like our stores and our staff and how we reward them. This is also related to the concept of day-parting and how good we are at offering our regular customers products that are relevant throughout their day.