marketing matters

Identifying and Leveraging Your VIPs

by Doug Fleener

All of your customers are important to the success of your business, but your top customers are even more important. Let's call them your “VIPs.” There are three types of retail VIP customers: Top, Current, and Community VIPs.

IDENTIFYING VIPS

The first set consists of customers who buy the most over a given time period. I like to measure spending over an 18- to 24-month period. This makes it easier to spot customers who are falling down or coming up the list.

The number of VIP buyers you track depends on the size of your business. Most retailers track the top 50 to 100 customers per store. You might do hundreds, but I'll base this article on 100. I like to break the VIP buyers into two groups. The top 10 to 20 customers are my Top VIPs; the rest of the top 100 customers are my Current VIPs.

The third group isn't actually made up of big spenders, but is still vital to a store's success. This group consists of loyal advocates who bring in a large number of new customers as well as members of the community with which you benefit from being associated. Examples include someone famous, a political mover and shaker, and well-known businesspeople: Your Community VIPs.

Most retailers have identified their Current VIPs but haven't necessarily segmented the Top VIPs or officially identified their Community VIPs. It's important to not simply identify your three different groups of VIPs but to also leverage each group.

Do you keep track of when your Current VIPs visit your store? Do you invite your Top VIPs to see the newest products? Are your Community VIPs getting special invitations for key events?

LOYALTY

Loyalty cuts both ways. The customer who spends $2,000 a year deserves more of your attention and a better experience than one spending only $50 a year.

As always, the goal is to ‘wow’ every customer. But elevate the ‘wow’ and personal service to an even higher level for the VIPs. This also enables you to create incremental visits and sales from your VIPs.

Are your very important customers getting enough of your attention and a VIP experience? If not, get them segmented now before the holidays. EB

Doug Fleener is president of Dynamic Experiences Group, LLC, and author of the enewsletter, The Daily Retail Experience (thedailyretailexperience.com)