Key knowledge of any business is to know its “best customers.” Are they the customers who buy occasionally, but in large quantities; are they the customers who buy on a repeat basis; or are they customers, who through thick and thin, remain loyal?
Knowing this type of information will help businesses create tailored incentive and reward programs geared toward those customers. This is a necessary strategy in today’s internet based consumer world. Consumers have immediate access to just about every retailer and their products and incentives are a means to an end.
But business owners, while creating a loyalty incentive package, should be aware that targeting only the ‘best customer’ may be problematic. Your analysis program or strategy may be missing key factors, such as a large number of small quantity buyers may be as profitable as a few large quantity buyers.
To remedy this scenario, and cover all bases, businesses should establish a comprehensive incentive or reward program that hits all targets. Mark Healy, writing for The Globe and Mail, notes, "Rewarding the best customers is a good idea, but rewarding all customers – to different degrees – is a better idea." He adds, "Focusing solely on what may turn out to be a small bucket of customers just isn’t smart or profitable."
Along with broadening a businesses’ customer aim, it should note that consumers, while liking values and discounts, find other aspects of a business even more important, such as a quality product, customer service, and reliability.