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People Counter

How to identify your most valuable customers with people counter data

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Written by Tony Loxton
Jan 26

The data revolution has left few corners of the business world untouched: organisations of all sizes, in every industry, are increasingly using data analytics to streamline processes and improve operations. And, while there are plenty of stories about major players in the business world using data to their advantage (Amazon, Uber, Netflix and the like), for most organisations the solution isn’t quite that simple. With the deluge of data most companies have to deal with on a daily basis, it’s often hard to know which metrics to focus on and which data holds the most value for your company.

Plus, the variety of data analytics software available makes it difficult to know that you’re choosing the best tool for the job. In this blog, we’ll look specifically at people counter data, and how you can use it to identify your business’s most valuable customers and increase Customer Lifetime Value.

Segmentation and Customer Lifetime Value

Segmenting your customer base is pretty much Marketing 101, but segmentation in today’s data-driven context is a different beast entirely. In fact, this new era of customer data is calling into question many long-held beliefs about which segments represent the most valuable customers. As Tommy Walker points out in this ConversionXL article, that it costs five to seven times more to close a new lead than retain an existing one isn’t the universal constant of marketing we once thought it was. Instead, Walker argues that businesses spend too much time focusing on transactional, rather than post-conversion value. “It should go without saying that you need to invest in making the product better,” says Walker, “But if we’re not also focusing on ways to make our existing customers happy - and yes even marketing to the people who already bought from us - the cost of acquisition can greatly outweigh the amount we can make from a single customer.” It’s basic math: if you increase Customer Lifetime Value for existing customers, the cost of acquiring new ones shrinks accordingly as the return per customer is greater.

The salient point here is that too many businesses rely on hearsay and the studies of others, rather than using the wealth of business data available to them to inform their decisions. There’s no one-size-fits all solution for any business. It’s only by collecting and analysing your data, and understanding which metrics are most valuable for determining customer value, that you’ll be able to identify your most valuable segments.

How people counter data fits in

People counter data provides real-time insight into the way customers engage with your product or service, whether you’re a retail store owner, public transport operator, car dealer or any other professional whose customers visit them on premises. With the latest generation of WiFi-based people counters, it’s possible to measure the length of time individual customers spend on your premises, which areas of the shop floor or display they spend most of their time on, the frequency with which they return and the percentage of walk-by customers. By combining this with other business data, you’ll be able to uncover how your sales and marketing efforts are affecting actual customer visits, and monitor how any changes impact this. You’ll also be able to segment customers according to the criteria you wish. So, for example, you could group your highest-spending customers together and analyse the common factors between them, and then use this data to optimise marketing and sales campaigns for loyal customers.

Some key metrics for identifying your most valuable customers

Sales minus cost

Most companies measure the value of a customer according to the number of sales they’ve made to them, but it’s important to consider the cost of making each of those sales. People counters make it easy to identify repeat customers, and measure lifetime value on an individual level.

Add-on products or services

If a customer buys more products from you, their acquisition cost decreases because it’s being spread over a larger number of transactions. People counter data will allow you to identify repeat customers, and develop a strategy to cross- and upsell them at optimal times.

Walk-by traffic

Walk-by data shows how many customers walk past the entrance to your venue without coming in. Measuring the difference in walk-by numbers when you change window displays, advertise new offers or run sales will show which triggers encourage passers-by to enter your venue and engage with your product or service.

People counter data is an invaluable resource for any business with customer-facing premises. If you’re interested in finding out more about how people counter data can help your business discover more about your customers and increase customer lifetime value, download our white paper on how to unlock a new world of insight into store performance. 

Download our retail white paper - Go Beyond the Door

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