We have established in our previous blogs that businesses should dive deep into their data to understand Customer Life Time Value (CLTV) better. This will enable them to identify their best customers and provide them with better value. This can be achieved through Velvet Rope Marketing (VRM) ie., the VIP treatment.
The best customers deserve this velvet rope treatment because:
- They sign up first and look forward to product upgrades
- They spend significantly more than the rest of the customers
- They stay loyal to a brand longer even with competitors wooing them with better prices
- They understand your brand better and are easier to serve
- They spread the word about your brand far and wide
By focusing on the best customers, VRM helps stratify customers and provide a differentiated experience. VRM treats best customers like royalty to deliver:
- Hassle-free experiences
- Envy or pride compared to the rest
- Easy access
- Enhanced security
- More personalization
All these help generate additional revenue, profits, loyalty and word of mouth for brands.
These elevated experiences can be in the form of monetary & non-monetary benefits too. However, non-monetary benefits are more sustainable over the long term.
Treating Best Customers Like VIPs
Best customers can spread a brand’s message, attracting others like them. This is another big reason to deploy VRM for the top 20% customers.
Here are some more examples of differentiated service offerings:
- Get premium samples free – from wishlists to new launches
- Get a special page designed based on preferences – likes, seasonality, offers, etc.,
- Get notifications on topics of interest
- Participate in product co-development
- Cancel tickets or orders without loss
- Pre-book a slot based on historic data and get an assigned concierge
- Get free exchange opportunities
- Pick preferred seats in advance
- Order service/product before arriving on-premise
- Preferential treatment from customer service; first-in-line always
- Get invited to media events celebrating the brand’s loyal customers, to get first-look at products
- First opportunity to book an order for limited edition apparel
- Offers for orders similar to previous purchases
- Early bird opportunities to buy tickets for upcoming events
Examples Of VRM Based On Industry Type
So, what can companies do for their best customers? Here are a few examples:
- App based services
Personalized offer zones, priority customer care and early access to new features.
Personal financial advisor, dedicated services and better protection for transactions.
Rewards and curated travel itinerary based on interests.
Notifications for freshly stocked goods which were previously out of stock. Recommendations to buy those or similar items when restocked. Special offers for items similar to customer’s previous purchases.
Specially designed page based on customer preferences – including a combination of things they like, along with seasonal launches or offers. Provide 3 free exchange opportunities to best customers.
- Streaming Platforms
Early content access or preview (music, tv shows, movies etc.,). Ask best customers for content preferences to recommend for the following week or month.
Give best customers a privileged opportunity to buy a new collection directly from the brand or even co-design new products.
- Multiplexes & Event Management
Predict what best customers are likely to order and offer an easy buying option.
Developing A MadTech Growth Flywheel With MarTech & AdTech
VRM’s focus on best customers can help significantly lower ad spends and customer acquisition costs. VRM can do wonders when enabled with the best of marketing and advertising technology ie., MarTech.
AdTech’s soul lies in advertising campaigns, ads, and all relevant data and metrics i.e. impressions, acquisitions, views, and unique users, etc,. It mostly focuses on acquisitions of new customers.
Current customers and their retention come under the purview of MarTech. It enables creation, deployment, and management of online marketing campaigns. It majorly involves the use of onsite marketing like email marketing, social media management, A/B testing, personalization, user-feedback surveys, and web analytics.
MadTech helps provide a holistic approach to digital and marketing strategy for brands. The integration of adtech and martech into a powerful VRM flywheel that can manifest itself across the customer journey starting with customer acquisition, onboarding, retention, development and advocacy. It is therefore critical to collect and store customer data across all touchpoints using a Customer Data Platform (CDP).
There are various other benefits of VRM when implemented right using CLTV:
- Higher revenue, greater satisfaction, lower churn
- Differentiation in customer service
- Better targeted marketing spend
- Move from cost per acquisition to value per acquisition
- Quality retention – 5% increase in customer retention can increase a company’s profitability by 75%
- More accurate sales forecasting
- Better information for product design and planning
- Better project prioritisation
- Quick refunds and other such decisions
The Netcore Smartech solution powered by Raman, our AI engine is perfectly poised to help any brand implement VRM. Contact us to learn more about customer retention with 1:1 personalization using multi-channel marketing automation.