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 Yarn.com, 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.
In the world of eCommerce, not every customer brings the same value. Some buyers come once and leave, while others return again and again, spending more, engaging deeply, and becoming your biggest supporters. These are your VIP customers, and identifying them is the secret to long-term success. That’s exactly where Royex Technology comes in.
Royex Technology understands that every eCommerce business is different. Our team carefully analyzes your customer data, shopping habits, and engagement to identify your true VIPs. Instead of just looking at numbers, they focus on understanding what drives your top customers, what they love, what keeps them loyal, and how you can offer them more value.
We combine customer analytics with behavioral insights to create accurate profiles of your most valuable buyers. This helps your business focus your marketing efforts where they matter most, on the customers who actually make a difference to your bottom line.
Beyond that, we don’t stop at just identifying VIPs. We help you build stronger relationships with them. From personalized email campaigns to exclusive offers and loyalty programs, our strategies make your top customers feel special and keep them coming back for more.
Royex, a top eCommerce Website Development Company in Dubai, builds your online store to collect the right data from the very beginning. Our developers create websites that are fast, secure, and optimized to track customer activity effectively. This makes it easier to analyze customer journeys and improve conversions over time.
In short, partnering with Royex Technology means more than just technical support. We turn data into insight and insight into action, helping you grow your eCommerce store the smart way. To know more details about our services, please call us on +971-56-6027916 or email at info@royex.net
1) Who are “VIP” customers?
VIPs are your highest-value customers. They often buy. They spend more per order. They return more than average. They may also refer friends or leave great reviews. VIPs are loyal and profitable. Treating them well multiplies revenue.
2) How do I identify VIPs in my data?
Start with simple metrics. Look at customer lifetime value, total spend, purchase frequency, and recency. Use RFM: recency frequency monetary. Rank customers by those scores. The top scorers are your VIPs. Cross-check with behaviors like email open rates, product returns, and referral activity to refine the list.
3) How many customers should I call VIPs?
There’s no strict number. Start with the top 5 to 20 percent. The 80-20 rule is a guide, not a rulebook. If your top 10 percent make 70 percent of revenue, that’s your VIP pool. Keep the group focused so perks stay meaningful and affordable.
4) What personalization works best for VIPs?
Make their experience smooth and special. Offer early access to sales. Send tailored product picks based on past buys. Engage customers through one-to-one emails and authentic direct customer support. Remove friction at checkout. Surprise them with small gifts or handwritten notes for big orders. Personalization should feel thoughtful, not creepy.
5) How should I price VIP perks?
A great ecommerce website does more than look good; it helps your business grow. Offer a mix: exclusive discounts, free expedited shipping, loyalty points, or free returns. Price perks so they increase repeat purchases more than they cost. Test offers on a small VIP segment first. Monitor whether the perk increases average order value and customer retention.
6) How do I measure if VIP marketing works?
Track a few core KPIs. Customer lifetime value, repeat purchase rate, average order value, churn rate, and net revenue from VIPs. Also, watch the acquisition cost for replacing lost VIPs. Compare VIP performance before and after campaigns. If VIP metrics improve, your strategy is working.
7) Should I treat VIPs differently across channels?
Yes. Use the channel that the customer prefers. Some VIPs respond better to SMS, while others prefer email or in-app messages. Use data to match the message to the channel. VIPs expect fast, consistent service across all channels—website, social media, and support.
8) How do I get more VIPs?
Make it easy to become one. Encourage larger or more frequent orders with targeted bundles and subscription options. Reward actions that lead to VIP behavior, like referrals and reviews. Use lookalike audiences based on your VIP profile for acquisition ads to find similar buyers.
9) What common mistakes should I avoid?
Don’t give away too much. Too many perks can kill margin. Avoid depending only on intuition. Data should guide who is VIP. Avoid one-size-fits-all offers. And don’t forget to re-evaluate VIP lists — people change over time.
10) Can small shops use the 80-20 rule too?
Absolutely. Even tiny stores often have a handful of top customers. The principle is scale-agnostic. Smaller stores have the advantage of being more agile with VIP service. Use simple spreadsheets or your ecommerce platform’s reports to start.
11) Which tools help identify and serve VIPs?
Most ecommerce platforms have reports for sales and customers. CRM tools, email platforms, and analytics suites make RFM and segmentation easier. If you want automation, choose tools that sync purchases, behavior, and messaging. Start small. Add complexity only when required.