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Do you realize that, generally speaking, 80% of revenue comes from 20% of clients? It's not the exact number however this notion turns out to be true most of the timein almost all business.
So while you must always be seeking new customers, specifically than that, you must be searching for more of the same customers as the ones who top out at 20%..
All of it starts with Average Order Value (AOV) as well as CLV, Customer Lifetime Value (CLV) along with your Dashboard.
How do you find large-spending eCommerce customers
The Analytics dashboard
It's possible to sort your data according to different timeframes, and compare performance during that time with one another. How did your first week of July this year compare to the beginning week of July in the previous year?
The following kinds of data are easily accessible: below kinds of data:
- Total Sales
- Net Sales
- Orders
- Items Sold
- Returns
- Discounted Orders
- Gross Discounted Amount
- Total Tax
- Tax Order
- Shipping Tax
- Shipping
- Downloads
- Gross Sales
- Average Value of an Order
The third item on this list, Average Order Value is the point where you begin your journey to find your best clients. This should serve as the benchmark to determine what you consider a "big spender" is actually. If the average value of your order is $20, a person who has a spending of $22 doesn't have a place in the equation. That's about the average. But someone who spends 75 dollars on one order? This is a significant amount of money.
Be sure to go deep enough back into your past to find a good healthy, balanced average. The previous 12 months is the ideal period to look at.
On your Analytics Dashboard, you can also use the leaderboard feature to highlight top-selling products and coupons that are most well-liked, and (drumroll please) your top customers by name along with their spending total for the selected period.
You can only show up to the top 20 and cannot export your list. However, you can locate the top 20 for the time frame you prefer (monthly and weekly.) then write them down in order to make a a bigger list of most expensive shoppers. If this seems like a bit too much effort, try the solution at the bottom of this post that will do it for you.
Once you've identified the top clients for you You can now:
- Ask them to speak with them about your store. Discover why they are drawn to it, ask what changes would they like to see, take what you've learned to keep growing.
- Offer them exclusive deals. Since they are more likely to spend more, you could create sales that are available with a minimum spending amount, which is way too much for a typical buyer.
There are many benefits when you know who your most valuable customers are. What is their method of finding them? What can you do to tailor your advertisements to get in front of these high rollers? This is where the tracking of your advertising and the sources of traffic comes into play.
Facebook is a powerful method to connect with consumers since you are able to mix organic reach with paid options (like influencer marketing and ads) that can increase your reach.
As your ads strategy gets increasingly complex, and you strive to identify your most valuable (highest spending) customers, it is essential ensure that you've got all the information you can get. Facebook's Facebook extension can be the best solution to accomplish this.
For this post, we're presuming you're comfortable with the Facebook advertising dashboard.
The default campaign view results will appear similar to this:
But you can alter your columns in thousands of different ways.
Pick the three vertical columns at the top and click to customize columns. It will display the options available to you so that you will be able to find your most useful measures.
When it comes to eCommerce stores, there's many options such as:
- Payment information is added to the payment details
- Adds to wishlist
- Adds items to cart
- Checkouts are initiated
- ...and more.
These things will help you get a better picture of your sales funnel and the areas where customers are leaving.
There's a myriad of options for looking at the amount of advertising spend, the actual purchase made and the revenue generated as a result:
- Unique purchases
- Purchase ROAS (return on ad spend)
- Purchase conversion value
- Cost per purchase
But to find the sources of your customers with the highest spending, you need to know the average order value from the various sources. We'll look at two specific parameters:
Purchase conversion value + unique purchases
To find the average order value, divide the purchase conversion value by the number of purchases that are unique.
In the example above, the 3rd row of sales is averaging order value of $39.46. The 4th row shows 27 sales. Not only did the campaign bring in more sales, the average order value was substantially higher by $64.26.
It's now time to find ads that have the best mean order value, but even if your ads aren't filtered according to specific groups but you don't know whom to target.
In each campaign, you are able to create different ads to target various audiences. Additionally, you can create your own audience groups and save them to reuse repeatedly.
Below is an image of several different audience types in a particular campaign.
In the above example we can observe it is you can see that the "Clemson Fans" audience is responsible for about twice the revenues despite having only one additional purchase than that of the "Alabama Fans" audience. In other words, the average order value from this particular audience is greater.
Be sure to create ad groups that are segmented based on the same audience. If you alter them prior to when the launch of each campaign, it's more difficult to come up with accurate conclusions.
This can be done for every campaign and any audience you create. Then, you can identify what audiences are most likely to buy more on your store.
In the end, it's crucial to keep in mind that no measurement should be the only thing that informs your decisions. Like a particular ad group may have the highest conversion rate but be only accountable just a tiny portion of revenues generated, the ones that invest the most money aren't your most effective choice.
Why? Because even if an audience spends double the amount of the average person, if they are three times more costly to reach, the marketing campaign will be ultimately lower-performing.
ROAS, or return on ad spend, is a measure that can help to determine the amount of the revenue that is generated per dollar of advertising. If your ROAS is 2.5 it means you've made 2.5 dollars for every dollar spent on advertising.
As you should not solelyfocus on your most-spent viewers or solelyfocus on those campaigns which have the highest ROAS, you also don't want to ignore the many ways to market your business. Maybe your best-performing Facebook campaign hasn't performed as well as your worst-performing Google Ads campaign. Or maybe no paid ads were as efficient as the organic traffic generated by your efforts to optimize search results.
The benefit of Google Analytics is that it brings your data together into one area. It allows you to see a side-by-side comparison of broad channels (social media organic, pay-per click or pay per click, etc.) and even specific sources and ad campaigns.
Google Analytics' default information is incredibly helpful. But stores need more data. Google's Enhanced Ecommerce Reporting is the solution. It's a complex connection, however this free application does the charge of the integration for you. This integration is required for you to benefit from everything we'll be discussing.
What is the average order value in Google Analytics
After logging into Google Analytics go to Acquisition and then click onAll Channels - Channels.
Select the option Ecommerce then it will load with some fantastic information.
First of all, at the top, you'll look at the average amount across all the sources. This gives you an overall measure of your store's performance as a whole.
It is possible to extend the period to obtain an accurate estimation of your typical order amount but also see if it's increasing in the course of time (another fantastic goal). This information will help you determine which source gives an above or below average prices for orders.
Now, you can also examine the average order value by the channel. You'll notice, in the example above the channel "Paid Search" has an incredibly higher average order value than any other source.
This again should be taken with the context as we aren't able to determine the amount of money invested to identify the few people who were high-spending. Also, as there were so few, though they spent a lot in their own ways, their overall expenditure was much lower than those who came from directly-search.
Click on any channel to view more information if it's available.
There are also statistics about a certain part of the audience, and contrast it with the average of all viewers. Here's how:
Select the Add Segment option in the upper right hand corner.
There are an already-defined set of audiences. However, for this example you'll need to hit the red New Segment prompt to locate a specific audience we want to evaluate.
Even without parameters You'll probably find a lot of great information about users. Make use of the filters on the left to create audiences that you can compare. In this post, we've mostly talked about discovering traffic sources that result in the largest spending clients. However, with this tool you may also be able find out what kinds of attributes -- like age or gadget they're using which your top spenders share!
We named our audience "". Google Analytics identified the totals for this audience as 13 transactions for the average of $409.
In addition, UTMs are the key for locating hyper-specific data. If you had a promotion with the tag "DiscoPromo" you could sort the data by this tag and see if the promotional results result in higher or smaller, or standard prices for orders.
How to find customer lifetime value in Google Analytics
The average purchase price is an excellent tool for identifying campaigns and audience that result in large purchases. However, what happens to customers who have a large number of purchases? In time, they will spend a lot more at your store than the average person. That's why they're huge spenders too.
When you set up the correct settings using Google Analytics, you can determine the value of a customer's lifetime based on campaigns or even certain audiences. This can help to determine your most important customers.
To determine the value of a customer's lifetime, go to the Audience -- Livetime Value
The first thing you'll find is an overall graph of the lifetime value. The graph is curved due to the fact that when customers return to make more purchases, the mean increases. The flatter your graph more rounded, the fewer repeat customers the business makes overall.
Note: Not every business is entitled to a curve in their graph for instance, when you're selling something that's usually only a one-time purchase.
Below the graph with a curving curve, you'll find the breakdown of the number of users, revenue per user, and overall revenue organized by the acquisition channel.
In the following example you'll find an intriguing insight. Referral lifetime value is significantly higher than other types of search -- such as organic search that although organic search is able to generate nearly five times as much traffic, it accounts for significantly less overall revenue.
It's a great piece of info. It gets better.
It is also possible to sort on channel, source, medium, and campaign. If you're using UTMs, you will be able to find some extremely specific details. There is a chance that clients who purchased through the regular New Years Facebook blitz have an even higher LTV as compared to those purchased from your summer sales. If you have this info you could be able to cut some of your summer sale budget and use it to finance your New Years promo!
MailPoet: Find your best customers' names and then market to them!
Do you remember when we first started being able to identify your best customers based on revenues from your dashboard?
By using MailPoet, you can identify the most profitable customers for you by segmenting your email lists by lifetime value. You can then send specific email marketing messages to that group. For example, push sales that have higher limits on purchase but that may not go over as well with the rest of your customers.
It is also possible to export the data. You could export a list of anyone who's spent more than $1,000 in your store and contact them individually to find out why they love your shop. Inviting them to fill out an online survey. Offer a unique gift "just because" to retain their loyalty. Invite them to take part in occasions, special events, and much more.
MailPoet comes with a myriad of powerful tools. However, the capability to separate lists based on spend andexport information to be used to use in various ways? That's an amazing game changer.
Best stores know and maintain the best customers
Use the tools that are provided in this article to identify your top sources of spending customers, so that you can discover additional. Plus, identify key clients by their names, to reward them and keep your top customers.