Originally published at CRM Xchange.
I just went back and reread this March article in the Harvard Business Review,
“Make Your Best Customers Even Better.” It’s a thoughtful piece that does a good job of defining the “superconsumer,” those customers who are, for myriad reasons, your best. Note, superconsumers are not necessarily your “heaviest users or most frequent purchasers,” as the article points out. In fact, as you’ll read, superconsumers are far more than loyal customers; they tend to be product evangelists, innovators, and enthusiasts. And as one of the Five Myths About Superconsumers points out, they are not impossible to find. Difficult, yes. But not impossible.
In our experience, the challenge most companies have in finding, identifying and then acquiring more superconsumers lies in the data. Many companies have vast amounts of customer information from disparate sources – financial systems, e-commerce platforms, SFAs, warranty databases, and social sites – but they struggle to bring the data together and then link it to create a consolidated, comprehensive view of their customers. And as the Domo Data Never Sleeps 2.0 infographic tells us, Facebook users share 2,460,000 pieces of content EVERY MINUTE OF THE DAY. We see it ourselves – companies that are generating billions of online transactions daily need to figure out how to capture, store and manage that data, and then determine what data are valuable and how to best utilize them to make smarter business decisions. And if there was any question at all, with 2.4 billion people online, we’re talking about overwhelming amounts of data. (Have most people even heard of a yottabyte?)
But once you have your data securely managed via a customer data management platform, that’s when the good stuff starts. From there, you can apply analytics to identify and profile these superconsumers and determine their value to your organization. And there is so much goodness in knowing who these individuals are; you can go find others who look like them, or better yet, sell them more and have them serve as advocates in their networks, promoting your products better than any advertising could.
In our experience, Pareto’s principle applies when it comes to superconsumers – 80% of sales come from the top 20%. Not only do they outspend their peers, but they buy more frequently and tend to purchase higher-value product. Here are some stats from our research that should make you think a bit more about focusing on these top consumers:
- Superconsumers are up to 40x more valuable than non-supers
- Superconsumers represent the vast majority of total Website traffic (read: +70%) and content consumption and are more likely to interact across multiple channels; in fact, their interaction frequency is 10x that of your average consumer
- The heavy hitters – the top 3-5% - those SUPER supers – spend 4x as much as the average
There is so much more I could tell you about superconsumer habits…how they opt-in or out at much higher rates…how they overindex on premium product…how they place more orders in a shorter time period…but then I’d be giving everything away.View all Blog Posts