place a higher priority on driving repeat business Research undertaken in the United States by RJ Metrics, found that the top 10% of loyal customers spend three times per order more than the bottom 90%. Further, it was found that the top 1% of customers spend five times more than the bottom 90%. This suggests […]

place a higher priority on driving repeat business Research undertaken in the United States by RJ Metrics, found that the top 10% of loyal customers spend three times per order more than the bottom 90%. Further, it was found that the top 1% of customers spend five times more than the bottom 90%. This suggests that business should focus as much as possible on developing existing customers. This point was further emphasised by Edward Gotham of Ometria: “The key to success in customer loyalty marketing (CLM) is behind optimising for Customer Lifetime Value (CLV) and not conversion rate (CR) or revenue per visit (RPV). This is not to say conversion rate doesn’t have its place – it’s a very important metric in the right scenario. However, the hierarchy is what is important. CLV trumps all others as a metric for long term profitability.” So, what does research say about developing…