This is the revenue distribution card, which is an important insight that you get on the dashboard. But, what does it mean?
This card basically tells you that 20% of your customers were responsible for 81% of the revenue generated by your business. The question is, how does knowing this value help you.
By knowing this customer segment, you have the opportunity to personalize your engagement and retain them for a longer while.
Here's what you can do using this insight.
#1 Find these Customers
Basically, these are your best customers. They are your highest spenders. However, you don't know much about them yet.
These customers are already segmented into various clusters with the RFM analysis. You need to check which cluster they belong to, and how you can engage them.
Check out how RFM Segmentation works to understand these clusters better.
#2 Look for the Dormant Customers
With this revenue distribution, you know that at least a few customers are not contributing anything towards your business. Check what went wrong, if they were engaged previously. If they are new customers, you might want to try a different strategy.
This revenue distribution helps you mine through your customers in a strategized manner, so that you can define engagement strategies accordingly.
#3 The Silent High Volume Buyers
There are customers who don't really communicate but, they are your silent high spenders. You should connect with them and appreciate them. It is also a good idea to engage with this segment through a promotional campaign.
This revenue distribution can help you minimize overall costs, and enhance business profits.