From “active” to “loyal”. How? Do not touch!

From “active” to “loyal”. How? Do not touch!

Sometimes, for the client to become “loyal” it is necessary not to interfere with them – it is enough to ‘keep’ them correctly. They will do the rest themselves. Why and when you still need to do something – see below.

We already know that “newcomers” are a priority segment in customer development. We try to convert their first order into their second. This is a key indicator in our work. When the “newcomer” makes a second purchase, they go to the segment of “active” customers.

But who do we consider “active”? Look at the RF-grid of the restaurant – here all guests are divided by the number and duration of visits.

Number of visits
Last visit 1 visit 2-3 visits 4-6 visits 7+ visits
0 – 30 days ago 430 450 340 910
30-60 days ago 330 310 200 140
> 60 days ago 1 340 790 110 210

Using red color, we highlighted “newcomers” who visited the restaurant once during the last month. Green – “loyal” who visited the restaurant more than 7 times, at least one of them was in the last month. Yellow highlighted “active” customers who visited us 2-6 times, at least one of them-during the last month.

Here are the guests from yellow segment are the only two options: in the “loyal” in the green segment or in the “gone”, indicated in gray.

Our main task in working with “active” customers is to make sure that the maximum number of them moved to the segment of “loyal”. It is in our power.

Do not interfere.

Sometimes this is the best strategy to work with this segment of customers. While they purchase – simply do not interfere. The maximum that is necessary is retention. It is enough to analyze changes in their behavior and prevent the circumstances due to which the client may leave.

To see the changes, you need to understand what buyer behavior is natural.

Let us continue the theme of the restaurant-below is a schedule of visiting guests with a history of visits two or more times. Let us find the average time that passes between their visits.

http://mmr.ua/uploaded/materials/27cd1b5c46.png

(слева) Number of clients; Average period between visits (сверху)

It may be clearly seen here that the natural thing for most of these clients is one visit every 20 days. We will consider this figure as the base for setting up trigger communication aimed at keeping “active” clients.

This means that if a guest does not visit our restaurant within 20 days, the retention program will automatically start. What such a program may consist of depends on the characteristics of your business, for example, it may be as follows:

  1. Remind them of yourself.
  2. Send a gift or discount for the next visit or purchase, very limited in time, for example, 3-5 days. Do not forget to remind about the end of your offer.
  3. Send a promotional offer for a group of related products that your customer has not previously ordered.
  4. If there is no next visit or order for this step, find out what happened. You can call or send a survey to the e-mail

It is important to configure this trigger program so that each subsequent step is performed only if the previous one did not bring results.

Measure the efficiency

To calculate the conversion from “active” to “loyal” (and this was our main task), we need to determine the level of such conversion at the moment: how many customers had moved to the green zone, and how many – to the gray zone.

Let’s say, from 200 “active” – 100 became “loyal” and 100 – “leaving”. Therefore, the conversion is 50%. It is possible to accept this figure as basic in natural conditions. Our further actions will be aimed at increasing this figure.

In addition to conversion, it is important to track the frequency of the trigger program of customer retention in relation to the total number of customers in the segment of “active”. Here the logic is: the less often the trigger is triggered, the better you work with the base. This way customers are satisfied and they go into “loyal” on their own.

In addition, if every month the trigger launch rate is the same or increases – this is very bad, then the number of customers who do not make the next purchase increases. We need to know why!

What else can be done?

What to do when the trigger program on hold is configured and everything works correctly.

For “active” customers, the frequency of orders which suits you – to make a newsletter news digests with company news and propositions, and wait for the transition to the “loyal”.

Moreover, you can try to increase their profitability. How? Due to the expansion of the average check and the basket. Personalize your newsletter, taking into account the customer’s purchase history; make them a personal offer, the purpose of which will be the expansion of the basket. Well, involve him in communication to increase the frequency of contact without material stimulus. But about this – in the next article.

From “active” to “loyal”. How? Do not touch!

Sometimes, for the client to become “loyal” it is necessary not to interfere with them – it is enough to ‘keep’ them correctly. They will do the rest themselves. Why and when you still need to do something – see below.

We already know that “newcomers” are a priority segment in customer development. We try to convert their first order into their second. This is a key indicator in our work. When the “newcomer” makes a second purchase, they go to the segment of “active” customers.

But who do we consider “active”? Look at the RF-grid of the restaurant – here all guests are divided by the number and duration of visits.

Number of visits
Last visit 1 visit 2-3 visits 4-6 visits 7+ visits
0 – 30 days ago 430 450 340 910
30-60 days ago 330 310 200 140
> 60 days ago 1 340 790 110 210

Using red color, we highlighted “newcomers” who visited the restaurant once during the last month. Green – “loyal” who visited the restaurant more than 7 times, at least one of them was in the last month. Yellow highlighted “active” customers who visited us 2-6 times, at least one of them-during the last month.

Here are the guests from yellow segment are the only two options: in the “loyal” in the green segment or in the “gone”, indicated in gray.

Our main task in working with “active” customers is to make sure that the maximum number of them moved to the segment of “loyal”. It is in our power.

Do not interfere.

Sometimes this is the best strategy to work with this segment of customers. While they purchase – simply do not interfere. The maximum that is necessary is retention. It is enough to analyze changes in their behavior and prevent the circumstances due to which the client may leave.

To see the changes, you need to understand what buyer behavior is natural.

Let us continue the theme of the restaurant-below is a schedule of visiting guests with a history of visits two or more times. Let us find the average time that passes between their visits.

http://mmr.ua/uploaded/materials/27cd1b5c46.png

(слева) Number of clients; Average period between visits (сверху)

It may be clearly seen here that the natural thing for most of these clients is one visit every 20 days. We will consider this figure as the base for setting up trigger communication aimed at keeping “active” clients.

This means that if a guest does not visit our restaurant within 20 days, the retention program will automatically start. What such a program may consist of depends on the characteristics of your business, for example, it may be as follows:

  1. Remind them of yourself.
  2. Send a gift or discount for the next visit or purchase, very limited in time, for example, 3-5 days. Do not forget to remind about the end of your offer.
  3. Send a promotional offer for a group of related products that your customer has not previously ordered.
  4. If there is no next visit or order for this step, find out what happened. You can call or send a survey to the e-mail

It is important to configure this trigger program so that each subsequent step is performed only if the previous one did not bring results.

Measure the efficiency

To calculate the conversion from “active” to “loyal” (and this was our main task), we need to determine the level of such conversion at the moment: how many customers had moved to the green zone, and how many – to the gray zone.

Let’s say, from 200 “active” – 100 became “loyal” and 100 – “leaving”. Therefore, the conversion is 50%. It is possible to accept this figure as basic in natural conditions. Our further actions will be aimed at increasing this figure.

In addition to conversion, it is important to track the frequency of the trigger program of customer retention in relation to the total number of customers in the segment of “active”. Here the logic is: the less often the trigger is triggered, the better you work with the base. This way customers are satisfied and they go into “loyal” on their own.

In addition, if every month the trigger launch rate is the same or increases – this is very bad, then the number of customers who do not make the next purchase increases. We need to know why!

What else can be done?

What to do when the trigger program on hold is configured and everything works correctly.

For “active” customers, the frequency of orders which suits you – to make a newsletter news digests with company news and propositions, and wait for the transition to the “loyal”.

Moreover, you can try to increase their profitability. How? Due to the expansion of the average check and the basket. Personalize your newsletter, taking into account the customer’s purchase history; make them a personal offer, the purpose of which will be the expansion of the basket. Well, involve him in communication to increase the frequency of contact without material stimulus. But about this – in the next article.

 

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