Boosting Your Business With Customer Segmentation, Part 2
May 4, 2023
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Learn about increasing valuable customers in a business, customer segmentation, cost of acquisitions, the danger of implementing a subscription plan, deploying marketing efforts, and the effectiveness of win back campaigns.
Analyzing acquisition channels can help identify patterns that drive high-value customers.
Tailoring product offerings based on customer behavior and preferences can increase the retention of valuable customers.
Deep dives
Acquiring More Whales
To increase the number of Whales in your business, you can focus on acquiring more of them. By looking at your acquisition channels, such as source medium reports or ad groups, you can identify patterns and channels that drive a high percentage of Whales. By allocating your efforts and resources towards these channels, you can attract more of the valuable Whale customers.
Retaining Whales
Another way to increase the number of Whales is by focusing on retention. By keeping your current Whales engaged and purchasing for a longer period, you naturally increase the percentage of Whales in your business. One key aspect of retention is selling the right merchandise that appeals to your Whale customers. Analyzing customer behavior and preferences can help tailor your product offerings to retain and attract more Whales.
Turning Minnows into Whales
While it is challenging, it is possible to turn Minnows, customers with lower purchasing power, into Whales. One strategy is to identify gateway products or experiences that can lead a Minnow to become a Whale. For example, offering the right merchandise that provides a positive experience for the customer can open up opportunities for them to explore other categories and become a loyal Whale customer. However, it is generally more efficient to focus on acquiring more Whales and retaining existing ones rather than attempting to convert Minnows into Whales.
In part two of the episode about whales and minnows, Drew Sanocki and Michael Epstein discuss how to increase the percentage of "whales" or valuable customers for a business. There are three ways to do this: acquire more whales, retain current whales, or turn "minnows" into whales.