Customer value

8% of shoppers drove 40% of the revenue.

Three years of order data analysed. The top decile of customers was worth more than 40 times the bottom, and 59% of registered app users had never placed an order. A three-tier customer marketing framework was built off that picture.

Concentration
8% of shoppers drove 40% of revenue
Spread
Top decile worth 40x+ the bottom
Dormant
59% of app users had never ordered

Visit Specialty Foods

The situation

Specialty Foods had three years of order data and a growing app. What it did not have was a clear view of which customers were carrying the business.

An app install is not a customer. That distinction turned out to matter more than anything else in the data.

The analysis was structured using the Front Foot Customer Value Model.

The approach

  1. 01

    Read three years of orders, not three months

    Short windows flatter recent campaigns. A longer view shows who actually keeps coming back.

  2. 02

    Rank customers by value, then look at the gap

    Deciles rather than averages. The distance between the top and bottom of the base is the commercial story.

  3. 03

    Separate registered from active

    Counting registrations as customers had been quietly overstating the size of the audience.

  4. 04

    Build a framework the business can run

    Three tiers of customer, each with a different job to do and a different level of investment behind it.

The client's view

Anton is very professional, easy to work with and always willing to go above and beyond to get the best outcome for the project. A great strategist with great insights.
Phaedon AngeloFounder, Specialty Foods

The result

  • 8% of shoppers were found to drive 40% of revenue.
  • The top decile of customers was worth more than 40 times the bottom decile.
  • 59% of registered app users had never placed a single order.
  • A three-tier customer marketing framework was built directly off those findings.

The decisions behind this work

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