Did you know that 80 percent of revenue is typically generated by 20 percent of customers? Okay, it’s not a hard and fast rule, but this concept holds true more often than not — and in almost every industry.
So, while you should always be looking for new customers, you should specifically be looking for more customers like that top-spending 20%.
But how exactly do you go about doing that? What metrics should you pay attention to, and where can you find them?
It all starts with your WooCommerce Dashboard, Average Order Value (AOV), and Customer Lifetime Value (CLV).
Where can you find high-spending eCommerce customers?
Dashboard for WooCommerce Analytics
The dashboard has always been the place to go to find key indicators of your store’s health. It’s also become even more powerful as a result of a recent upgrade. In fact, we have a whole post dedicated to making the most of the WooCommerce Analytics dashboard.
You can sort by timeframe and compare performance from one period to another. How did your first week of July this year compare to last year’s first week of July?
You can quickly see the following types of information:
- Total Sales
- Net Sales
- Orders
- Items Sold
- Returns
- Discounted Orders
- Gross Discounted Amount
- Total Tax
- Order Tax
- Shipping Tax
- Shipping
- Downloads
- Gross Sales
- Average Order Value
The last item on that list, Average Order Value, is where you begin your quest to find your best customers. This should be used as the standard for determining who a “big spender” is. If your average order value is $20, someone who spends $22 will most likely not be counted. That’s about right. But what about someone who spends $75 on a single purchase? That’s a sizable outlay.
Make certain that you look far enough back in your history to find a good, healthy average. The previous 12 months are an ideal timeframe.
You can also use the leaderboard feature within your WooCommerce Analytics dashboard to highlight top-selling products, your most popular coupons, and (drumroll, please) your top customers by name along with their total spend for the selected period.
You can only display the top 20 results, and you can’t export the list. However, you can find the top 20 spenders for each time period (monthly, weekly, etc.) and write them down one by one to create a larger list of top spenders. If that seems like too much manual labor, there’s a hack at the end of this article that will do it for you.
You can now: Now that you’ve identified your true top customers, you can:
- Reach out to them individually to conduct an interview about your store. Learn why they like it, ask what changes they’d like to see, and apply what you’ve learned to keep growing.
- Provide special perks, loyalty rewards, and other incentives. Big spenders should be given special consideration. Give your best customers the VIP treatment to ensure they stay with you indefinitely.
- Market to them by offering them exclusive deals. Because they are more likely to spend more, you can create sales offers that require a minimum spend amount that would be prohibitively expensive for your average customer.
There are numerous advantages to determining who your best customers are. But how did they track you down? How can you tailor your advertisements to reach more of these high rollers? This is where tracking your ads and traffic sources comes in.
