What is Customer Quality?

Customer Quality is a categorization of your customers by spend amount. These labels are assigned to customers based on how much they spend in your store and whether their spending is above or below average.

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Valued customers are your average shoppers, and they’re going to make up the bulk of your customer base. As the largest portion of your shoppers, they’re worth taking note of.

Great customers are your above-average spenders. They take up a slightly smaller percentage than the valued customers but usually make up for it in spend amount.

VIP customers are your big spenders. These people spend much more in your store than the average customer and, as such, they are definitely worth creating a segment of in order to offer them special deals.

Moderate customers spend slightly less than average. The right offer might be all that is needed to persuade customers in this category to move up into the Valued customer group.

Low customers are at the very end of your low spenders. They are customers who have a high likelihood of going idle or churning in the next little while.

Prospect customers are those who haven’t purchased anything from you yet, and can therefore be considered leads.

These labels can help you identify and understand the spending patterns of your customers and sort them into specific segments that can be targeted according to their spending quality, as shown in these examples:

  • Send your VIP customers a “Welcome to the Gold Club” (or similar) email with special offers and sneak previews of new products to raise their engagement.
  • Reach out to your Moderate customers with a Win-Back Campaign to tempt them back in before they go idle.

 

To learn more about understanding the use of Segments vs. Lists, click below: 

Lists vs. Segments

Customer Status

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