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20 Minutes to Identify a $611 Customer

By David Chan – Web Analytics Master

How I single out high value customers to increase profit.

80_1

Wouldn’t it be nice if you could identify the profile of your high spending customers, 80% of your profit from 20% of your customer – The 80/20 Rule. Technically known as Pareto’s Law, or the Pareto Principle.

Why is it important for my business?

If you are able to identify them, know more about them then you can be more specific with your marketing. You can create touch points and content message to engage them, build trust and convert them. In my example I know male between age 45 – 54 has a great spending potential.

With this in mind I can make good assumptions like:
1. high percentages of them likely to be married
2. income should be around than $7,000 – $12,000
3. strong interest in ageing related content

It need not cost you an arm or leg, I use simple free tools which most businesses already have to identify customer having $611 average spending.

$611 average purchasse

$611 average purchasse

Let’s get started, tools I used:

  • Microsoft Excel
  • Google Analytics

Step 1: login to google analytics

log into GA

Select the admin tab

 

asda

Select the view you want to analyze

 

Step 2: setup goals in google analytics, if you already have goals setup you can skip this step

Depending on your goal objectives choose the right template, for the example we are using destination type

Add new goal

Add a new goal

 

sds

Setting goal – step 1

 

setting goals

setting goals

 

Step 3: Setup goal value, most users don’t step up value. One main reason is they are not able to determine actual value, for web analytics we don’t necessary need this value to be 100% accurate. An estimated value will be enough, as this will add another info into the data sources. For this example we put it as USD 50.

However, if you have a eCommerce site you need not use this value since GA captures the transactional value.

setting goal value

setting goal value

 

Step 4: navigate back to reporting and select audience

Select reporting

Select reporting

Go to audience options

Go to audience options

 

Step 5: Segment with secondary dimension, segmentation allows you to gain more information about the subject you are analysing; in our case the gender

Add secondary dimension

Add secondary dimension

 

Step 6:  configuring secondary dimension, if you are unsure of what secondary dimensions are available, use short cut by typing into query bar and it will show you the drop menu

configuring secondary dimension

configuring secondary dimension

 

Step 7 : secondary dimension added

Secondary dimension added

Secondary dimension added

 

Step 8: if you have multiple goals be careful to select the appropriate goal for analysis.

Also remember to expand the numbers of row to see all the details, recommend to select 50 rows as the default

goal selection

goal selection

 

Step 9 : time to start making the graph

download excel file

download excel file

 

Step 10: use excel to create graph, in our example we are using the gender and age as the x-axis. You need to arrange the data is this way to plot the graph

excel data

excel data

Final product

$611 average purchasse

$611 average purchasse

 

Here is an excellent video to help you with making graphs from excel

Now is your turn, if you run into any problem drop me note on the contact form ….. have fun

 

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