What if your highest-spending customers aren't your most valuable?

In today's world of Social Buying, where people can purchase together online in real-time, it’s worth considering that your biggest spenders may not be your most valuable customers.

Traditionally, we’ve been taught to focus on customers with the highest Average Transaction Value (ATV) and Customer Lifetime Value (CLTV). However, this approach might be flawed.

Take wine purchases, for instance. We often assess customer value based solely on their spending. Yet, we overlook the influence of friends, family, colleagues, and members of wine clubs or online forums who may sway their buying decisions.

At Cobuyr, we’ve created an innovative payments, data, and analytics solution that enables customers to shop together in groups. Our platform also provides valuable insights into who is buying with whom and the dynamics of these relationships.

The data collected through Cobuyr gives retailers a competitive edge, allowing them to effectively acquire, engage, and retain customers through highly personalized marketing strategies.

So, are your biggest spenders truly your most valuable customers? Perhaps not.

Consider this hypothetical scenario:

Dan is labeled a "high-value" customer in your CRM with a CLTV of $8,500. He consistently purchases two cases of wine each year but never visits your winery.

In contrast, Isabella has a CLTV of $1,200. While her average transaction value is lower, she frequently splits costs with friends and often introduces new customers to your winery through group buying on your website.

Which customer holds more value? Both are important, but if your winery is investing heavily in customer acquisition, it may be wiser to focus your marketing efforts on Isabella. She actively contributes to expanding your customer base.

Retailers using Cobuyr gain access to powerful analytics that highlight key customer purchasing behaviors:

• Primary Buyers: These customers initiate wine buying groups and invite others to join. They are crucial as they act as active advocates for your brand.

• Secondary Buyers: These customers are invited by Primary Buyers to share costs at checkout. While they are valuable, they typically do not initiate buying groups.

As you evaluate your marketing and sales strategy, consider whether you truly understand why your customers are buying and who influences their decisions. Word of mouth significantly impacts wine purchases.