Have you seen Easy Ways To Make Marketing Pay?

This is the marketing playbook that will help keep your business at the top of every customer's mind - and wallet - and help you increase Profits, Customer Satisfaction, Customer Retention, Customer Loyalty and Word-of-Mouth Advocacy, both online and offline.

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Top 10% of customers account for 40% of sales

The study also found that these most valuable shoppers tend to remain very loyal to the store, with 95% continuing to shop there throughout the year. Conversely, only 34% of the store's worst shoppers, those who visit the store less than once a month and spend only US$9 per visit, remain customers.

"Shopper churn is a fact of life for every marketer," said William Young, vice president of sales and marketing for Concept Shopping. "Shopper loyalty continuously ebbs and flows through retail banners and store types, but sorting shoppers by their value helps identify which ones should be courted and which ones can be ignored."

The study divided the 2 million shoppers into ten equal deciles based on their spending levels during a 12 week period, and detailed the total amount spent and the number of trips, as well as the percentage of spending on products which were on sale (i.e. promotional spending).

Only 11% of the money spent by the best shoppers (those in decile number 10) were on promotional items, making these heavy shoppers the most profitable as well. By contrast, more than 35% of spending by the worst shoppers (those in decile number 1) were on promotional items, making them positively unprofitable (assuming a 33% profit margin).

The study also tracked shoppers as they moved across spending levels from year to year, and examined overall shopper retention and defection rates. In one example, a retailer retained 70% of its customers while 30% defected to other retailers, with only 5% of the highest spending group leaving. More than half (57%) of the top spenders from the previous year remained in the top decile, with only 21% declining to the second decile.

"As these charts indicate, retailers should spend the lion's share of their time, effort and promotional dollars on their top-spending, loyal customers," concluded Young. "Moreover, other studies have shown that it costs about five times as much to win a new customer as to keep a current one."

Have you seen Easy Ways To Make Marketing Pay?

This is the marketing playbook that will help keep your business at the top of every customer's mind - and wallet - and help you increase Profits, Customer Satisfaction, Customer Retention, Customer Loyalty and Word-of-Mouth Advocacy, both online and offline.

This 120+ page report distils a whole spectrum of marketing best practices, do's and don'ts, practical how-to's, research and wisdom from respected global marketing veterans, explaining both emerging and established marketing techniques, technologies, strategies and practices, and providing you with the data you need to support the best decisions for your new, more profitable, more engaging marketing strategy.

In this comprehensive report you'll find all the information and support you need to build and improve a profitable, effective Marketing Strategy that covers all aspects of your business and customer base.

It also highlights all the hard facts, practical know-how and trends drawn by our experts from the global Marketing Factbook's vast database of market data, studies, research and white papers, and presents you with an invaluable library of ideas and practical support you can call upon at will.

This is no average 'state of play' report; it's the only 'Fact Book' that helps you implement and manage meaningful and profitable change, and help you grow your bottom line despite a slowing economy.

You'll gain a true goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, research and market data, plus all the supporting arguments you need to build a solid, profit-generating marketing strategy.

Get it on Amazon (Kindle/Print)