This month’s customer segment, “High Value Breakfast Regulars”, is a common but often underserved type of segment for many restaurant brands. No, not because we all should be catering more to those of us who can’t resist a hearty morning meal (though that too!) - but because brands often don’t understand their most loyal customers.
The High Value Breakfast Regulars are this brand’s most valuable customers:
They spend almost 4X the amount annually compared to the average customer
They are a small group - only 5% of total customers
But they make up a whopping 19% of annual revenue!
If you could get to know them, to make sure they continue coming back, wouldn’t you? Let’s learn more about them to help formulate a tailored campaign strategy.
What drives this segment’s value?
In this case, it’s all in their frequency. Unlike other segments whose value may be driven by larger purchases, this segment is all about frequency - they visit at least once per month, whereas this brand’s average customer visits only about 2 times per year. Interestingly, their average bill is lower than the rest of the customer base.
Understanding the segment
So what does this mean? On one hand, the high frequency, and lower average order value might mean this group is more interested in perks for being frequent loyal customers and reasons to keep coming back and making each visit special, rather than upselling each visit. On the other hand, increasing their average bill by just a small amount could make a huge impact.
Taking action
How do you decide on an engagement strategy for such a segment? Launch an experiment. Try each tactic and see what brings the highest lift and longest retention. And don’t forget - use your knowledge of what they’re buying to tailor your message. In this case, it’s largely breakfast items, but look closely - this group also enjoys a much larger menu diversity than the average customer! How can you use that to promote some new items? May the best campaign tactics win!
