Price-sensitive customers are far too often ignored by marketers. The common thread of thinking is that they are tough to sell to, but with the right strategy that is not the case! In fact, this customer segment has much more spending potential than you might expect.
Let’s say that your stingy customers have shown in the past that they are able to visit your locations three times per month, but generally they come in one time per month (these numbers align best with a quick-service restaurant concept – adjust them to fit your company’s business model). These stingy customers – the people who either visit infrequently and/or spend very little with each visit – have a lot of room for growth because they’ve shown that they are capable of spending more.
In order for these price-sensitive customers to reach their spending potential, they must be challenged in a relevant way. Your marketing tactics should ask them for something you know they are capable of achieving. If you ask a stingy customer to behave the same way as a loyal one, the daunting task could be a turn-off altogether. You’ll need to track customer behavior with either a loyalty or CRM program and then analyze the resulting data. When you’ve identified the true spending potential of your stingiest customers, here are the two best ways to compel them to spend more: […]