🎓 Definition
A new customer is a customer who recently (time frame defined by the Retailer) acquired the card, joined Loyalty Program, and made his first purchase. Each Retailer will define its own duration during which a customer can be labeled as New.
🧪 Example of New Customer
1,000 Customers registered on the 1st of December, as New Members, and 750 of them made a purchase on the same day. 750 Customers are considered as a New Customers for a period of time defined by the Retailer from their first purchase.
Usually, Retailer considers a Customer as New (Registered and Purchased) for a period of 8 weeks.
❓What is used for
• To understand how new Customers interacted with a Retailer, predict how they may interact with Retailer in the future and how much revenue Retailers tend to make from a single customer.
• To tell Retailers how much customers are likely to spend during their time shopping with them, usually called Customer Lifetime Value, which can help Retailers find the right combination of short-term and long-term marketing strategies.
• To identify Top customers based on their spending habits, ABC Analysis. This will give Retailers more focus on how to grow more profitable relationships with current and future customers.
How is the 'New Customer' status tracked by the Retailer?
The blog post does not specify the exact methods or systems retailers use to track the 'New Customer' status. However, typically, retailers might use customer relationship management (CRM) systems, loyalty program databases, or purchase tracking software to monitor customer interactions and determine the duration for which a customer is labeled as 'New'.
Are there any benefits or incentives for customers to be labeled as 'New Customers'?
The article does not mention any specific benefits or incentives offered to customers to encourage them to make their first purchase or join the loyalty program. Benefits or incentives can vary widely depending on the retailer and the industry. Common incentives might include discounts on the first purchase, bonus points in the loyalty program, or exclusive offers for new members.
How do retailers differentiate between customers who have made their first purchase but haven't joined the loyalty program and those who have joined both?
The blog post outlines the criteria for a new customer, which includes acquiring the card, joining the loyalty program, and making the first purchase. However, it doesn't clarify how retailers distinguish between customers who have made their first purchase but haven't joined the loyalty program and those who have completed all the mentioned criteria. Retailers might differentiate between these groups by analyzing data from their CRM systems or loyalty program databases to identify customers' membership status and purchase history.
🖥️ Make it happen in Ulys CRM
How to access New customer in Ulys:2 Simple Steps
Step 1: Select Buying Pattern under the Behaviors Menu in the Menu Bar.
Step 2: Select the Option in the Filter Menu and select the frequency and period you want to measure.
And here it is. The New customer will appear in the New vs Returning Customer widget.
You can also extract the List of Customers who are identified in each segment of New vs Returning Customer from the Table icon.
