5 Proven Strategies to Attract High-Value Customers and Maximize ROI
Retailers of all sizes strive to acquire high-value customers who are loyal and willing to spend their money with the brand, especially in today’s climate. High-value customers are the integral component of any business. These types of consumers rely heavily on a store's products or services and regularly make large purchases time and time again.
Retailers want these customers to come back again and again, as well as to spread positive word-of-mouth about their business. Loyal customers can be a great asset for any retailer since they represent reliable revenue and help build credibility for the brand among potential new customers.
Creating a great customer experience is essential in attracting and retaining the right customers, and often, this is both an art and a science. Below are several tips to attract, retain and grow your base of high-value customers:
1. Offer quality.
High-value customers are looking for more than just a discount or bargain. They want to invest their money in products that offer good quality and useful features and provide them with value for their money. To cater to these customers, your product must live up to its promises and deliver on expectations of performance, reliability, customer service and trustworthiness. By focusing on crafting a high-end product experience you can foster long-term relationships with these customers, who will be likely to recommend your products or services to others.
2. Make it convenient.
Retail stores have traditionally been stuck with the "old-fashioned" checkout process. But today, retailers can make use of point-of-sale (POS) systems that provide customers with a frictionless shopping experience. Modern POS systems allow customers to view product information, check availability, redeem rewards points, and complete the checkout process quickly and easily with just a few clicks or taps. This makes for a much more enjoyable and convenient shopping experience that customers will appreciate — especially when compared to their online counterparts who are used to faster speeds and greater convenience.
It's also essential to ensure that customers have an integrated shopping experience across channels. Recent research indicates that 81 percent of customers prefer to do their initial research online before going to the store for final purchase. This demonstrates just how important it is for companies to provide an omnichannel shopping experience, ensuring they meet shoppers where they are and to bridge the gap between the online and in-store experience. Retailers must go beyond simply providing a website or physical store — they can (and should) embrace digital solutions such as e-commerce, mobile apps and social media platforms in order to give customers the seamless experiences they crave. By building an effective omnichannel strategy, businesses can benefit from increased customer satisfaction and loyalty as well as improved sales figures.
3. Provide excellent customer service and experiences.
Studies have shown that the customer experience is one of the key factors in how likely customers are to recommend a brand. A positive customer experience can go a long way in making your business stand out, with 62 percent of customers recommending brands with great service. On the other hand, poor experiences can also spread quickly and potentially damage your reputation online through social media or review sites like Yelp.
To ensure you’re providing great customer service and staying ahead of the competition, try implementing unique touches like personalization or technology-based solutions for a seamless buying experience. By creating special moments for your customers, you can make sure their journey with you will be remembered fondly and shared with others.
4. Build credibility.
Maintaining customer trust is essential for all companies to build a successful brand. Every interaction with customers, including transactions, should prioritize building their trust, from providing secure and reliable services to creating engaging marketing and advertising content that resonates with them. Ultimately, building customer trust is an ongoing process that requires continuous effort but is well worth it in the long run. By doing so, you'll create a strong relationship of mutual understanding between your company and its customers that will help benefit both parties.
Loyal customers have always been the backbone of successful businesses. Therefore, today’s retailers must understand what customer segments they're looking to serve and tailor their strategies to attract these valuable high-value customers.
5. Have a referral program.
Creating a referral program specifically for high-value customers is an effective way to drive business growth. This is key as acquiring a new customer can cost five times more than retaining an existing customer. These customers are more likely to spread the word about your company and bring in new customers. By giving incentives, such as discounts or loyalty points, to these customers for referring new business, you can create positive rewards that will keep them coming back and continue to build your customer base. Additionally, having a referral program will help to provide an additional layer of customer service that many companies lack. Having a strong referral network among loyal customers allows you to tap into one of the most powerful forms of marketing: word-of-mouth.
As we've seen, there are many effective strategies for gaining loyal, high-value customers, including providing quality products and services, convenience, excellent customer service and experience, and building credibility. These approaches can also help maximize return on investment by bringing in more repeat business from existing customers. Though these are important practices for success, there may be other methods that you can use as well. What other strategies do you think would work for attracting high-value customers?
Nick Gurney is general manager of Jewel360, the cloud-based point-of-sale system designed for leading jewelry retailers.
Related story: 5 Key Trends to Watch in Modern Retailing
Nick Gurney is general manager of Jewel360, the cloud-based point-of-sale system designed for leading jewelry retailers has a passion for creating solutions that help retailers leverage their POS to improve sales and efficiency. Gurney built his expertise in retail point-of-sale software with Rain Retail managing product development and relationships with retailers nationwide. His career is based on a degree in Technology Management with an emphasis in information systems and technology from Utah Valley University.