WWD: Myths and Realities of Your Most Valuable Customers
DynamicAction CMO, Sarah Engel, penned a piece for industry bible, Women’s Wear Daily. The Myths and Realities of Your Most Valuable Customer, featured in WWD’s Think Tank, dives into the complexity and common misconceptions of the ever-elusive profitable shopper. She explains how connected organizations are shifting to a digital-first operational mindset centering on new metrics derived from customer data points to enable fast action.
“Describe your most valuable customer (MVC).”
Even the most savvy fashion executives will begin by touting metrics surrounding recency of purchase or loyalty status — closely followed by frequency of purchase, with that coveted shopper set who has bought more than eight or 10 times firmly holding the executive’s trophy for MVC.
“Yes, but who is your most profitable customer?” The discussion will most likely shift toward lifetime value versus cost of acquisition. There may be a discussion of multiple channel purchases or return patterns, but suddenly the “greatest of all time” is much more challenging to pinpoint.