Support Engineer

Identifying and Marketing to Your Ecommerce VIPs Through 80-20 Rule

It was the year 1906, when the Italian economist Vilfredo Pareto had created a mathematical formula for describing how wealth was unequally distributed in the country. As per his observation, about eighty percent of his country’s wealth had been accumulated just twenty percent people.Since then, the concept that nearly twenty percent causes give rise to eighty percent of results has become a norm. The business has taken this the yardstick that we see it being applied in the business world to this day. So much so that the world of e-commerce practically makes the 80/20 rule as a crucial tool for customers and framing their value to the business.

A little glimpse into this theory for analyzing customer data can help determine the value of the business and what it means to the customers.

Applicability of the 80/20 Rules On Customer Data

Essentially, customers have habits and patterns that are crucial to each e-commerce business. This means that businesses must cater of customer behavior, attitude, likes and dislikes among other attributes. All of these can be determined by the concept of customer lifetime value.

Regardless of the type of brand you market, each one may have many different types of clients with a broad range of cells. For instance, you may have buyers who made one small purchase while others may buy more and spend a lot. There is a third type who buy only when they feel it necessary. It would be appropriate to look closely monitor your customers and their buying attitudes to identify the 80/20 position.

Take Note Of the VIP For Data Segmentation

It may be harder to pinpoint those buyers who shop frequently but have smaller average order values as it’s easy to determine shoppers who make large purchases.To find these repeat customers, it’s essential to put in the extra work. These two groups will likely provide 80 percent of your revenue as they can make roughly 20 percent of your clientbase.
The difference for every brand and industry is the essence that constitutes a big spender and a loyal, frequent shopper. While furniture and jewelry might see bigger spenders, fashion equipment, and apparel is likely to see more frequent purchasers. For instance, loyal customers might be defined differently due to a shorter shopping season or seasonal brands like a ski apparel retailer.

Identify The Way To Address VIP Clients

It would be better never to underestimate how valuable these customers are onceyou’ve identified who your VIPs are. You may end up converting your repeat customers into permanent ones if you know how to handle them. Through these, you'll have a higher AOV per customer especially when you connect with them frequently with personalized messages.
When it comes to retention, your big spenders should be a top priority. Woo, these shoppers with special offers. Alo, thank yous and messages that acknowledge milestones like birthdays and anniversaries as they’ll likely continue purchasing more from your site if you accept and appreciate their effort.

Your VIPs has been shown to help further boost salesup to 25 percent more per transactionduring the holidays and back to schooltype seasons.

Tips To Retain VIP Clients

Grabbing your hips customers is not difficult if you know how to do it. For instance, by providing engaging content that will give them a reason to stick, they’ll stick with you for a long time. Also, sending thank you and personalized messages to your VIPs always helps.

You can find similar examples on sites such as the, which is the world’s largest retailer of yarn. They ensure to pamper theirloyal customers and engage with them from time to time. There are other examples where e-commerce companies prefer to engage with their top clients. Finding different ways to keep them interested in doing business with you is the way forward.

If you want to have a window into different customer types and help,you must understand the importance of the 80/20 rule to your e-commerce brand. By boosting sales among an already eager group of shoppers, these focused marketing efforts can yield the greatest Return On your Investment.

In Woops Ecommerce Management System you can check your customer behavior and understand who is your VIP client and who are the fake customer.

If you are looking for identifying and marketing to your e-commerce solutions, then welcome to our Ecommerce Website Development Company. We, Royex Technologies will help to manage your eCommerce website data in real time from any platform. To know more details about our services, please call us on +971-56-6027916 or mail at