By Lucy Crossland on Thu 07 April 2022 in Wholesale & Distribution
RFM analysis has become a crucial tool for effectively segmenting your customer base, in particular identifying your "Champion" customers. These customers offer unique opportunities for business growth. So how exactly can you make the most of this positive relationship to drive business growth?
Analysing your customer base in its entirety may sound daunting, but it really doesn’t have to be. Using effective tools and techniques like RFM analysis can provide a comprehensive overview of your customer’s buying behaviour. Of course, actioning the lower scores is crucial to reactivate hibernating customers and those who are at risk of churning - but don’t get complacent with your Champions. Sure, take a moment to sit back and feel proud that these customers are spending lots and ordering often with you – but only a moment! These customers offer unique opportunities for business growth. So, aside from your normal activity, how else can you make the most of this positive relationship to drive business growth?
Word of mouth is now more powerful than ever thanks to public reviews. It’s quick, easy, and super convenient for customers to post and access reviews about a business’ products and service, with G2 Crowd stating that around 95% of customers read reviews prior to making a purchase.
Your Champion customers by their very nature are spending the most and buying from you most often, so it’s likely that they’ll be happy to sing your praises! Whether it be the high standard of customer service, great after sales care, amazing product range, or just a combination of all these things - something keeps them coming back, so tap into it!
Make the most of these happy customers and ask them if they’d can leave a review on your website, either via a public review site or simply via email. Whichever way and on whatever channels you decide on, make sure you have a process in place to gather these reviews. Not only does a process make it consistent (so anyone in the business can pick it up and execute), but there’s more chance you’ll consider how you word your approach to get the best outcome.
Here’s a quick checklist of things to consider when writing up a review process:
- Channels/Medium: where customers should post/send a review e.g. Google Business, Trustpilot or simply get them to email a short testimonial
- Approach: how you plan to ask customers to leave a review – ideally, just give them a call and ask!
- Follow Ups: how and the number of times you plan to “chase up” the opportunity e.g. a combination of emails and phone calls
- Rewards: decide if you want to send out a reward to those that complete the review e.g. a gift card or a % discount off their next order
- Recording: how and where you’re going to record that contact has been made and the process has been followed, plus working out your success rate i.e. how many did you close vs. total opportunities
Develop your ICP
Without a clear Ideal Customer Persona (ICP) in place, your marketing will fail to attract more of the right type of customer. Luckily, knowing who your Champion customers is the key to building out a really clear ICP! Champions are a great indicator of your ICP, so analyse common trends amongst this customer group, and tailor your marketing to reach these types of businesses. Ultimately, your Champions are your “perfect” customers, so the more of these, the better!
New Product Launches
Another way to get your Champion customers involved is by holding in-person events, focus groups, or sending a simple email survey about an upcoming product launch. Their opinion on future product lines is going to be essential to your success, so get their thoughts and make adjustments based on their feedback. You can even give out free samples to get their first-hand opinions. Looping this RFM segment into future business decisions like product launches can really demonstrate how valued they are and will only encourage their loyalty.
Case studies are another great way to get more from your Champions. By showcasing their positive experience with your products and service in a case study format (even a short video capturing it on camera!) can be a really effective way of attracting more like-minded businesses. To bring case studies to life, break them down into easy-to-read sections, like “Key Benefits”, and add them to a dedicated page on your website to show them off.
These are just some of the ways you can make the most of your most loyal customers – turning them from Champions to true ambassadors of your products and services!
Not sure exactly who your Champions are? Prospect CRM is the only CRM with RFM Analysis built-in! Get a 100% free analysis on your customer base now and try Prospect - the #1 CRM for Wholesalers & Distributors - integrated to your Inventory Management or Accounting system.