CUSTOMERS KPI´s

We all follow KPI's. We have them in every color and sometimes we follow too many. Have you ever wondered what is the most important information about your customers?

The most obvious temptation is to think of the total number of customers who visit our stores each month and their frequency, or beyond that, the average sales figure per customer. However, being the average sales data, valid to make comparisons and to do internal follow ups and vs. the competition, there is an even more relevant data. The number of loyal customers or better customers per store. And why is this information so important? We could say that an average supermarket (depending on each country) has a number of customers (approximately 20%) that represent more than 60% of the total sales of that store. The degrees of concentration vary depending on the chains observed and so we have some whose most loyal customer base (5%) makes up to 30% of total sales. These buyers are the ones who can and should influence your business decisions. According to the global report ; Consumer Loyalty'; conducted by Nielsen, assures that 20% of those surveyed said that they would never change their brand, while 23% of people say that they are not loyal to their supermarket. Other studies by the Kantar company show the promiscuity; of the consumer, visiting several brands a month to make the purchase and in many cases only looking for the offer in each one of them.



The increase or decrease of loyal customers is a simple and clear indicator of our performance in the market, both from an operational and marketing point of view. A substantial increase in this segment of buyers will lead to more than proportional increases in sales and profits.

If your population of loyal customers is decreasing, it means that some of your best customers have become dissatisfied for some reason and are now making part or all of their purchase from your competitors, which should lead you to reflect on your overall strategy and its implementation in the store.

In addition, loyal customers have the lowest abandonment rate, while occasional or Convenience customers get much higher annual abandonment rates. Another reason to focus on our best customers is because of the “replenishment factor". For every faithful customer lost, you need 10 new occasional customers to make the same sales.

In short: a single piece of information can tell us a great story, and it tells us a lot if it gets better or goes down. The average of the best customers per store is one of the best readings of your business management. Because as your best customers evolve, so does your company.

At AnalytiKa we follow the evolution of these buyers through a multitude of indicators (spending capacity, typical basket, frequency, life cycle, etc. ) and we study in depth the migrations between segments. Understanding where your most loyal customers come from and the causes behind that loyalty (price, assortment, freshness etc. ).

That is key to improve that base and through that knowledge, carry out specific promotional and marketing activities to turn “normal" customers into your best customers. Specific monitoring of groups is carried out, which gives us the guidelines to design the best practices and to avoid wasting resources by doing periodic monitoring of the observed groups.

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