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
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
- 01
Read three years of orders, not three months
Short windows flatter recent campaigns. A longer view shows who actually keeps coming back.
- 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.
- 03
Separate registered from active
Counting registrations as customers had been quietly overstating the size of the audience.
- 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.
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.
Who was involved
The decisions behind this work
- We don't understand our customers well enoughIdentify which customers create value, where growth exists and where investment should be prioritised.
- This work also surfaced the insight that eButcher was spun out of. That story sits inside the customer value decision page.
What this work is
Customer Value Analysis, in practice
The Specialty Foods engagement is one example of how this kind of work runs. The approach is sized to the decision, not to a retainer.
See how customer value analysis works →Read next
All nine pieces of Selected Work →Recognise any of this in your own business?
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