Every business wants to boost revenue, but the real key is focusing on your high-value customers- those who not only buy often but also contribute the most to your profits.
By spotting and attracting high-value customers, you can:
- Lower Customer Drop-off: Keep your best customers coming back.
- Boost Profits Over Time: Make the most out of every customer’s potential.
- Turn Customers into Brand Champions: Let your loyal customers spread the word for you.
In this article, you'll learn who high value customers are, how to identify them, and simple ways to keep them engaged and loyal for long-term success.
Who Are The High-Value Customers?
A high value customer is someone who significantly contributes to your business through frequent purchases, higher spending, and long-term loyalty. These customers aren't just one-time buyers, they come back regularly, spend more than the average customer, and often become enthusiastic promoters of your brand.
Let's take an example of Sephora, the beauty retailer known for its exceptional loyalty program. Sephora's Beauty Insider program segments customers based on their annual spending, offering exclusive perks to high-value customers. By providing personalised product recommendations, early access to new releases, and special events, Sephora has successfully increased repeat purchases and customer retention.
Through their loyalty program, Sephora has been able to consistently bring customers back to their website, even when they aren’t shopping. That improved engagement leads to a 22% increase in cross-sell and a 13-51% increase in upsell revenue. This focus on high-value customers has built a loyal base that generates a substantial portion of the company’s revenue.
Why You Need to Attract High Value Customers?
- Acquisition vs. Retention Costs: It can cost a business 5 to 25 times more to acquire new customers compared to retaining existing ones.
- Majority of Business from Repeat Customers: 65% of a company's business comes from repeat customers.
- Revenue Concentration: 80% of revenue is generated by 20% of the customer base.
- Super-Customers: 10% of customers spend three times more than the average customer, making them crucial to identify and retain.
- Retention Investment: From a retention standpoint, it costs 16 times more to build a long-term relationship with a new customer compared to keeping an existing one.
How to Identify High Value Customers
Identifying your high value customers is crucial for maximising your business's growth and revenue. Understanding the psychology behind customer behaviour allows you to connect with them on a deeper level, fostering loyalty and long-term engagement. Here's how you can spot them:
- Purchase Frequency Analysis
What it is: Tracking how often a customer makes purchases within a specific period.
Why it's important? Frequent purchases indicate that customers have developed a habit and emotional connection with your brand. Psychologically, humans are creatures of habit; when they repeatedly engage with your business, it becomes part of their routine. Recognizing these patterns helps you understand their needs and reinforce their buying habits.
By identifying frequent buyers, you can personalise their experience, making them feel valued and understood. This strengthens their loyalty and increases the likelihood they'll continue choosing your brand over competitors.
Timing Matters! Engaging with these customers shortly after their purchases or during peak buying times reinforces positive behaviour. Timely interactions show that you're attentive to their actions, enhancing their satisfaction.
Nudge's Real-Time Analytics allow you to monitor purchase behaviours as they happen. With User Flows, you can create timely, personalised experiences that encourage repeat purchases, tapping into the customer's existing habits and making your brand an integral part of their routine.
- Average Order Value (AOV) Monitoring
What it is: Calculating the average amount a customer spends per transaction.
Why it's important: Customers who spend more per purchase demonstrate a higher level of trust and perceived value in your offerings. They're willing to invest more because they believe in the quality and benefits of your products or services.
By recognizing these customers, you can tailor exclusive offers or premium services that cater to their preferences, enhancing their overall experience and satisfaction.
Timing Matters: Offering relevant upsells or add-ons at the moment of purchase can capitalise on their willingness to spend, increasing both their satisfaction and your revenue.
With Nudge's Visual Builder and Inline Widgets, you can create personalised upselling opportunities that appear at just the right moment. This encourages high spenders to explore additional products that complement their purchase, thereby increasing their AOV.
- Customer Lifetime Value (CLV) Calculation
What it is: Estimating the total revenue a customer is expected to generate over their entire relationship with your business.
Why it's important: Understanding CLV helps you prioritise customers who offer the most long-term value. Investing in these relationships satisfies the human desire for connection and recognition.
By focusing on high-CLV customers, you can allocate resources to personalise their experiences, fostering a deeper emotional bond and increasing their loyalty.
Timing Matters: Regularly engaging with these customers during significant moments (e.g., anniversaries, birthdays) makes them feel special and appreciated, strengthening their attachment to your brand.
Nudge's Real-Time Analytics provide insights into customer behaviours over time.
- Engagement Metrics Analysis
What it is: Measuring how customers interact with your brand across various channels—website visits, email opens, social media interactions, etc.
Why it's important: High engagement indicates a strong interest and emotional investment in your brand. Psychologically, these customers seek a relationship and a sense of belonging.
By understanding their engagement patterns, you can foster a community around your brand, satisfying their social needs and encouraging advocacy.
Timing Matters: Interacting with customers when they're most active ensures your messages are well-received. Prompt responses show that you value their engagement, enhancing their connection to your brand.
Using Nudge's Stories and Videos, you can create interactive content that resonates with your audience.
The Gamification and Rewards features—such as loyalty programs, challenges, and personalised rewards—tap into their intrinsic motivations, encouraging deeper engagement and making interactions more enjoyable.
- Feedback and Surveys
What it is: Collecting customer opinions and satisfaction levels through surveys and feedback forms.
Why it's important: Customers who provide feedback feel a sense of ownership and connection to your brand. Psychologically, being heard fulfils a basic human need for recognition and can turn satisfied customers into loyal advocates.
By actively seeking their opinions, you demonstrate that you value their input, which can enhance trust and loyalty. Their insights can also guide improvements, making your offerings more aligned with their desires.
Timing Matters: Timing surveys appropriately—such as immediately after a purchase or customer service interaction—increases the likelihood of meaningful feedback. Engaging them when the experience is fresh leads to more accurate and actionable insights.
Nudge's Service and Feedback feature allow you to create tailored surveys with logical flows. By timing these surveys based on key customer actions, you maximise responses and show that you care about their experience, strengthening their emotional connection to your brand.
What to Do with Your High-Value Customers
"Do what you do so well that they will want to see it again and bring their friends."
— Walt Disney, Founder of The Walt Disney Company
Once you've identified your high value customers, the next step is to engage and retain them for the long term. Building strong relationships with these customers not only boosts your revenue but also turns them into advocates for your brand. Here's how you can achieve this:
- Personalise Their Experience
Why It's Important: Personalization makes customers feel valued and understood. When you cater to their specific needs and preferences, it strengthens their emotional connection to your brand.
How to Do It: Use data insights to tailor product recommendations, communications, and offers.
With Nudge's Visual Builder, you can design customised user experiences, adjusting fonts, colours, media, and interactive widgets to create a unique journey for each high value customer.
- Implement Loyalty Programs
Why It's Important: Loyalty programs reward customers for their continued business, increasing their commitment to your brand.
How to Do It: Offer points, discounts, or exclusive access to new products and events.
Leverage Nudge's Gamification and Rewards features—like loyalty programs, challenges, streaks, and personalised rewards—to encourage repeat purchases and boost customer lifetime value.
- Engage Through Multiple Touchpoints
Why It's Important: Consistent engagement across different channels keeps your brand top-of-mind and reinforces the relationship.
How to Do It: Communicate via email, social media, in-app messages, and personalised content.
Utilise Stories and Videos to create interactive, shoppable content that engages customers on platforms they frequent. Nudge's User Flows help build dynamic experiences that drive conversion and monetization.
- Solicit and Act on Feedback
Why It's Important: High-value customers appreciate when their opinions are heard and valued. This deepens trust and loyalty.
How to Do It: Regularly ask for feedback and make visible improvements based on their suggestions.
Use Nudge's Service and Feedback tools to create customised surveys with logical flows. Time these surveys based on key customer actions to maximise responses and show that you value their input.
- Offer Exclusive Benefits
Why It's Important: Exclusive offers make high value customers feel special and appreciated, enhancing their loyalty.
How to Do It: Provide early access to new products, special discounts, or invite-only events.
With Nudge's Nudges and Inline Widgets, you can highlight exclusive deals and information in a way that feels native to your app or website, ensuring high-value customers don't miss out.
- Provide Exceptional Customer Service
Why It's Important: Outstanding service resolves issues promptly and leaves a lasting positive impression.
How to Do It: Train your team to prioritise high-value customers, offering them dedicated support channels.
- Anticipate Their Needs
Why It's Important: Predicting what your high-value customers want before they ask for it delights them and sets you apart from competitors.
How to Do It: Analyse purchasing patterns and engagement metrics to forecast future needs.
Engaging High-Value Customers for the Long Term
Building a lasting relationship with your high-value customers requires ongoing effort and attention. By personalising their experience, rewarding their loyalty, and consistently engaging with them, you foster a sense of belonging and appreciation. This not only keeps them coming back but also encourages them to promote your brand to others.
Be Aware Of Your Customers Changing Behaviour
"A brand is no longer what we tell the consumer it is—it is what consumers tell each other it is."
— Scott Cook, Co-Founder of Intuit
Customer behaviour constantly evolves, influenced by trends like technology, social preferences, and even economic factors. Your high-value customers aren’t immune to these changes—they expect your brand to keep up. Recognizing these shifts early allows you to maintain their loyalty and stay ahead of competitors.
Let’s take a look at some trends that are driving customer behaviour changes today:
Customers expect brands to evolve alongside their changing needs. High-value customers, in particular, will gravitate towards companies that can offer personalised, seamless, and timely experiences.
Also read: Adapting to changing consumer behaviour in retail
Conclusion
Your high-value customers are your biggest asset, and their loyalty is what drives real growth. But keeping them engaged takes more than just good products—it’s about delivering personalised, meaningful experiences that show them they truly matter. Adapting to their changing needs and expectations is key to maintaining that connection and ensuring they stay with you for the long haul.
Don’t leave their loyalty to chance. With Nudge, you’ll have the products to track behaviour, deliver tailored experiences, and anticipate what your best customers need—before they even ask for it. So, what are you still waiting for?
Book a demo now, and see how Nudge can help you keep your high-value customers engaged and loyal.