Your product line determines customer loyalty

Recently Kevin Hillstrom wrote:

The result is this … our product assortment dictates customer loyalty … not the other way around. If you sell something that a customer only "wants" 1.5 times per year, you can flail away all you like with loyalty efforts and you’ll be successful and the customer will buy 1.63 times per year. Nothing changed. You actually did a great job, and nothing changed.

You’re better off spending the money finding a new customer.

Your business model, the products you sell, that determines if customers are loyal. Offering triple points on items that customers don’t need frequently is an altogether different proposition.

This is one of the hard truths with customer loyalty:

your product choices have the largest impact on loyalty

Your customer might only ever need to buy one of your products their entire life.

They might be completely satisfied and happy with that one product, but they still won’t ever buy again.

Changing the product assortment is a good alternative, but it’s not a surefire win for every store.

The other option is to focus less on selling to existing customers and instead try to find new customers. Especially if those new customers are similar to your best customers.

Finding your best customers can be difficult though, especially once you get into the 1,000s, 10,000s, and 100,000s. "Best" isn’t a single number you can look at easily.

Repeat Customer Insights will automatically segment your entire customer base for you into 125+ different segments. Some are simple segments that are easy to understand while others are complex ones that drill down into multiple criteria.

This gives you options for you to decide what "best" means to your store.

Eric Davis

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