A customer strategy refers to a Retailer's plan of action aimed at attracting, retaining, and growing its customer base.
It includes identifying:
- Target customer segments
- Understanding their needs and preferences
- Developing offerings and experiences that meet those needs.
A well-designed customer strategy takes into account the New customer onboarding journey, marketing and sales tactics, customer service, and support. The goal of a customer strategy is to create a positive customer experience and build customer loyalty, leading to increased revenue and long-term success for the Retailer.
🧪 Example of Customer Strategy
When faced with similar products at the same prices from different Retailers, customers may choose to shop with the competitor if they offer additional value through customized services.
For example, a Retailer that performs customer surveys might find that the majority of its customers are women and that they prefer having others help them install equipment in their homes. This could lead Retailer to expand its service to offering in-home installation of electronics.
Another example is a Retailer might offer a high-speed/express cashier line for Customers who has less than 10 pieces to allow customers to experience a faster service on the checking out process. High customer satisfaction makes customers more likely to come back in the future.
❓What is Customer Strategy used for
Effective Customers segmentation
Customer Segmentation allows Retailers to attract the “best customer” as they simultaneously adapt their strategies according to their needs. Retailers need to examine Customers' Lifetime Value. This is why a customer who spends a little but frequently possesses a higher value to a company than a client who spends more but shops less often.
"Research from the Center for Retail Management at Northwestern University shows that 15% of a company’s loyal customers are responsible for 60% of its total sales."
Increase in retention rates
Customer retention plays a significant role in Customer Strategy. This refers back to the consumer’s lifespan. The more time is spent on a customer and the longer attention is paid to them, the more they will listen to Retailer suggestions and purchase the recommended products.
Creating a Unique Experience
Consumers have numerous options for purchasing goods, so creating a unique, high-quality shopping experience can be just as important for getting customers to come back as the products themselves. This is an area in which Retailers can have an advantage over larger competitors. Because small Retails have fewer customers than large ones, they can spend more time giving personalized assistance and creating strong relationships.
• Customer Lifetime Value
• New Customer Onboarding Journey
• Advanced RFM