Customer Spending Behaviour
Knowing who your most profitable customers are, what they are buying and how much they are spending enables you to make data-driven decisions that help you reap larger commercial rewards. But, if you’re not a big retailer with the resource to analyse your customer data in that much detail, we’ve put together our tips on how to tap into spending behaviours to make informed decisions.
At Duologi, we help big and small retailers every day to support their customers spending and increase their bottom line. We understand that knowing your customers inside out is key in attracting new ones and retaining existing shoppers so if you’re starting out or want to understand your data better then take a look at our top tips.
Engage with your best customers
Given that more than 80% of a company’s revenue comes from only 15-20% of its customers, knowing who these customers are is essential1. This is different to analysing your best performing products or services, you need to find out who these people are, what makes them tick and how to communicate with them and their peers.
For e-commerce platforms, tools like Google Analytics will help you track these regular visitors and setting up relevant goals will let you see how these users move around the site and what triggers them to make a purchase. By gaining an understanding of the types of content they engage with on the site, the way they browse before buying and where they visit your site from will help you understand a bit more about the person, their personality and their online spending and shopping habits.
Once you’ve gathered enough data, you can start tailoring content that resonates with this audience while promoting the products that you know will appeal to them. For additional insights, Enhanced Ecommerce, can give you in-depth ecommerce insights like where shoppers abandon the purchase process, the top performing products by genres and the location of your shoppers.
Smarter sales strategies
With household spending at its lowest annual growth rate for six years, capitalising on times when your customers are spending is key to successful sales2. By analysing the traffic to your website and footfall in your stores, you’ll be able to see which months are the most successful. Look at that data next to your latest sales figures and you’ll begin to spot simple trends. While it may sound basic, this will help you put a strategy in place to get customers spending more, and increasing their order value during those key months.
With borrowing surging and family savings at a record low, we know how important it is to support shoppers with their spending. For retailers of big-ticket items, our retail finance products can help your customers spend in a controlled way. Offering products like 0% Finance and buy now, pay later options can help support your customers in making regular payments with opportunities to regularly communicate with them.
Looking back over the last five, ten and twenty years, it’s clear to see that consumers spending habits have changed dramatically. Events like Black Friday and Cyber Monday have changed traditional Christmas shopping habits, whilst traditional sale periods have also reduced, making way for more targeted and personalised sales strategies.
In order to continue to see your sales soar, you need to be aware of the ever-evolving habits of consumers. Just because something worked one year, there’s no reason to say it will work the following year. As well as keeping an eye on your customer data, it’s important to look at the predictions in your sector, take a look at what your competitors are doing and stay up-to-date with figures and commentary from the Office for National Statistics.
As a new generation of shoppers make their way through stores, understanding customers spending habits has never been more important. If you’re looking at new ways to capitalise on shopper spending, get in touch with one of the team to see how we can help.