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CRM Hack: VIP Definition

Watch: The fundamentals of defining a VIP Club made easy

Successful businesses do many things right. One thing they most likely have in common is the ability to properly define VIP customers.

This is part of a brand’s basic building blocks as existing customers – especially your most valuable ones – are the secret sauce of growth.

Still, a lot of brands find themselves struggling to find the right definition for VIPs.

Watch the video or read the transcript just below it as we walk you through the fundamentals of defining a VIP club:

Download an Excel template to calculate your customers’ LTV!

Why do you need to define VIPs?

As a leading brand today, you need to define VIPs to determine the ratio of customers that are bringing the most revenue to your business. A low percentage of customers generate the most purchases/deposits and revenue for brands in many cases. And it’s critical to identify them correctly.

Take the gaming brand below, for example. The top 5% of customers generate almost 60% of the total deposits. In other words, more than half of the brand’s deposits come from just 5% of the customer base!

How can you define VIPs?

Many brands use the NGR (Net Gaming Revenue) model to define their VIP club.

Though customers with high NGR are considered VIPs – NGR can be unstable sometimes. That’s why it’s essential to add another dimension to your analysis: Player Total Deposit Amount.

Looking at both KPIs enables you, as a smart CRM marketer, to be more personalized and to focus on those top-tier customers. It also allows you to target non-VIP customers with relevant upsell campaigns.

For instance, customers with high NGR and no deposits should be treated differently than customers with high deposits and low NGR.

In Sum

Today, we talked about the fundamentals of defining a VIP club. Though we provided you with some of our best practices, there are many different considerations we didn’t get to that should be taken into account. For example, the different products you have, the size of your customer base, your customers’ behavior, and so on.

For more details, please reach out to us – the Optimove Strategic Services team – as we have a lot more to give:


Don’t miss out on our previous CRM hacks from Optimove experts:

Published on

Yotam Ben Nathan

Yotam is a Marketing Data Scientist, serving on Optimove's Strategic Services team. Yotam's expertise focuses on consulting clients, analyzing their data, and helping them in making data-driven marketing decisions. He holds a BSc in industrial engineering and management from Ben Gurion University.