Most successful businesses have customers from various demographics. However, knowing which of those groups are the most loyal can help company representatives better target them and keep those customers satisfied. Here are six ways to do it.
1. Look at Loyalty Program Trends
It’s no surprise that your loyalty program can spotlight which demographics are the most committed to your brand. In a recent study, 67.6% of people said they’d join loyalty programs for brands they loved.
Think of what kind of demographic data you could ask on a loyalty program’s sign-up form. It might include someone’s age, gender, ZIP code, annual income or education level. However, before requesting this information, make sure to make it worthwhile for someone to provide it.
If people feel they’ll get great perks from a loyalty program, they probably won’t mind providing some personal details. Once they do, you can analyze the data to find broad trends. For example, the results might show that most loyalty program participants are college-educated women under 40.
2. Examine Sentiment in Product Reviews and Social Media
Online reviews often help people reach confident purchasing decisions. They can also help business representatives get an accurate perspective of customer loyalty. Statistics show that 66% of people will submit positive reviews if they have good experiences.
Examine reviews for useful demographic details. For example, a person might say, “I’m a guy in my 30s, and I’ve got to say that this razor gives me a closer shave than any others I’ve tried.” Other comments may be less specific, saying something like, “I’m not wealthy, but these sheets are so luxurious that they were well worth the splurge.”
An even more practical tip is to request some demographic information as people input information for a review. For example, British brand Marks and Spencer asks for a reviewer’s city, age range and gender. Then, it’s easier to sort through the specifics and find connections between brand loyalty and particular demographic characteristics. Look for phrases like, “This is my must-buy brand,” or “I’d never do business elsewhere” to confirm someone’s commitment.
3. Apply Demographic Information to a Business Map
Adding company data to a business map can offer fresh perspectives that might otherwise get overlooked. That’s because it’s easier to display the data in ways that aid understanding and guide decision-making. For example, you might color-code a section of the map based on median household income.
One actionable way to use map data to show the most loyal customers is to combine sales data with a person’s ZIP code. Once you find which communities have the most people who do business with you, drill down further to see details like their ethnicity or the number of individuals in a household.
It could also be useful to include sales data from repeat customers on your business map. After all, multiple purchases are typically strong signs of loyalty because they show that the person liked their experience and wants to repeat it. If you have a referral program, consider looking at map data to find instances of happy customers recommending your business to friends. That trend could become obvious if there is a rising amount of new business in a certain area.
4. Ask Consumers To Complete Short Surveys
Getting more familiar with your most loyal demographics also becomes more manageable if you ask the right questions of people who’re already associated with your business. Consider giving people an incentive, such as a coupon for 40% off their next purchase in return for submitting a survey.
Identifying loyalty could happen when asking questions like, “How likely are you to do business with us again in the next three months?” Would you recommend us to people you know?” “What do you like best about your experiences with us?” “How could we improve?”
From there, split people’s answers into groups based on whether those responses suggest strong loyalty. For example, if a person says they do business with you at least weekly, even if that means traveling farther or spending more, those things indicate that you’ve won them over.
5. Measure the Effects of Targeted Marketing
Marketers sometimes refer to the five main demographic segments, which are:
- Age
- Gender
- Occupation
- Income
- Occupation
However, as mentioned earlier, you can also divide people into groups based on where they live. Another possibility is to focus on psychographic segments, such as beliefs, values, lifestyle and interests. Finally, behavioral groups feature people who’ve purchased things from competitors, engaged with your brand and made similar conscious decisions.
Finding your most loyal demographics can occur by creating targeted marketing campaigns for certain groups or launching split testing to see how different efforts perform. Perhaps your company sells athletic shoes. Producing one set of materials to engage serious runners and another targeting people who are more active than most but primarily want comfy, supportive footwear helps show what kind of messaging is most likely to inspire loyalty.
6. Look at Social Media Response Rates
Platforms like Facebook allow you to target people who are a certain age or located in a particular place. There’s also an option to focus on users who have similar interests to people already identified as your top customers.
Once you’ve identified some of your most loyal customers, try targeting them accordingly through Facebook or other social media platforms. Track how often they like or comment on posts or use discount codes that you only offer for users of one social media site. Checking whether your content resonates with the target audience is an excellent way to confirm which groups are most loyal.
Social media responses among groups could also include some surprises, such as that people with particular shared characteristics are not your most loyal yet, but they’re interacting with your brand at higher-than-expected levels. Such clues could steer your future marketing efforts and ensure you don’t overlook targeting individuals who show genuine interest in your company.
Study How Loyalty Patterns Change
Besides using these six suggestions to figure out which groups are the most eager to continually support your brand, rely on them to pinpoint how loyalty shifts over time. For example, maybe your top customers were initially millennials, but you’re seeing a growing percentage of purchases coming from older groups after introducing a new product line. Staying tuned into those variations helps you respond proactively and remain competitive.
Eleanor is editor of Designerly Magazine. Eleanor was the creative director and occasional blog writer at a prominent digital marketing agency before becoming her own boss in 2018. She lives in Philadelphia with her husband and dog, Bear.
