IGNORING THIS ONE RULE WILL DESTROY YOUR BRAND
It’s all happening. Do you know that feeling, when it seems like everything is coming together, all the pieces are falling into place? A synergy is occurring all around us, including in the retail industry.
As our customers ask more and more of us, as the boundaries of where and how shopping happens continue to get blown out, it’s natural to wonder, “What’s Next”? That is the question we ask ourselves at TechSparq every day.
The Pareto Principle is the basis for the “80/20 in Full Effect” layer of our business blueprint. And while the notion of your top 20% tier of customers representing approximately 80% of your revenue is likely old news, there is always a way to dive deeper. Combining exceptional customer experience (CX) with that precious and loyal 20% unlocks a new universe of potential for your brand.
It’s Just So “Me”
Everyone identifies with a brand, no matter how much or how little spending they do. We make connections throughout our lives, and those impressions tend to last. These emotional bonds are a brand’s most valuable currency and convert into measurable profits.
The 80/20 rule gets more interesting the closer you look, meaning your best customers are even lovelier than you may realize.
20% of customer account for 80% of sales (You knew that.)
The top 20% within that 20% also account for 80% of those sales (Wait – so that means- )
4% of your customers account for 64% of your revenue (Holy smokes.)
The Bonds of Love
Imagine increasing the ticket value of only four percent of your customers, and watching your sales explode. Focusing on such a narrow and defined group means you can truly get to the know them, making identifying your next target audience a laser-precise operation. It’s certainly easier to find what you’re looking for once you actually know what you’re looking for – and that’s where data, the unsung hero of revenue generation, comes in.
A mere 4% of retailers utilize multiple data types. Their oversight is your brand’s opportunity.