Defining your VIP
You may be wondering: who is a VIP? What criteria should they meet to access my loyalty program?
This will look different for every brand. A VIP customer for a furniture store will look different than a VIP customer for a bakery. Choose the criteria that align with your business goals, customer needs, and loyalty program outcomes. Here are a few examples to consider:
- Purchase frequency or recency
- Engagement
- Customer lifetime value (CLV)*
*Note: You will only be able to create segments in Klaviyo using CLV if you meet the requirements. Learn more about how to segment by customer lifetime value (CLV).
Examples of VIP segments
To start, we recommend creating a single VIP segment to make it easier to manage your loyalty program. As you scale your program, you can create additional, more robust segments to create a tiered loyalty program or to target specific groups within your VIP community with even more relevant promotions.
Let’s take a look at a few VIP segments you can create for your own loyalty program.
Note: Ensure your VIP customers can receive communications from the channels you’re using to send your VIP messages. Regardless of the segment you create for your loyalty program, make sure you add criteria for channel consent.
Big spenders
Who they are:
Customers with a high average order value.
Example use case:
An online furniture store may consider customers who spend a large amount of money on their products, but only purchase 1 to 3 times a year, to be “big spender” VIPs.
Segment criteria:
You can create a segment based on customer lifetime value (if available) or purchase behavior.
Segment conditions:
- What someone has done > Revenue > is greater than __ in the last 365 days AND If someone can or cannot receive marketing > Person > can receive > email marketing.
- Use a revenue number that is slightly higher than your average customer's yearly spend.
Rewards:
Offer big spenders a reason to come back with early access to limited edition products or services. Your goal is to remind them of the benefits of being a VIP, promoting related or complementary products that can encourage them to make a new purchase.
Frequent purchasers
Who they are:
Customers who purchase frequently from your brand.
Example use case:
A coffee shop with online ordering may have “frequent purchaser” VIP customers who purchase often, but not in a high monetary value. For example, someone who orders 1 coffee every day.
Segment criteria:
Here you’ll want to focus your segment on purchasing behavior.
Segment conditions:
- What someone has done > Placed Order > is greater than __ in the last 365 days AND If someone can or cannot receive marketing > Person > can receive > email marketing.
- Use a number that is slightly higher than your average customer's number of orders per year.
Rewards:
Give your customers a reason to spend more money. Offer exclusive discounts on related products, early access to complementary products, or admission to exclusive events.
Blended
Who they are:
Customers grouped by a mix of spending: value, frequency, and recency.
Example use case:
A cosmetics brand might group customers who purchase frequently, recently, and at a high monetary value to create a “blended” VIP segment.
Segment criteria:
Your segment will focus on customer lifetime value and purchase behavior.
Segment conditions:
- What someone has done > Placed Order > is greater than __ in the last 365 days OR What someone has done > Revenue > is greater than __ in the last 365 days AND If someone can or cannot receive marketing > Person > can receive > email marketing.
- Use a number of orders and revenue that is slightly above average for a customer in a given year.
Rewards:
Combine your offers with perks like 1 day shipping, as well as exclusive access to new products, services, or events.
Potential VIPs
Who they are:
Customers who are not yet VIPs, but who are approaching the threshold.
Example use case:
All businesses can benefit from a segment that identifies potential VIPs. Target this segment with content that encourages them to shop and become a part of your VIP community.
Segment criteria:
Create your segment around purchase behavior or CLV.
Segment conditions:
Your condition will differ for each business depending on what your VIP segment looks like.
Since the example VIP segment conditions included that someone needs to place an order at least 5 times in the last 45 days, then a potential VIP should place 4 orders in that time. One more order would thus push them into the VIP category.
- If someone is in or not in a list > Person > is > in not> VIP segment AND What someone has done > Placed Order > is at least __ in the last 45 days AND If someone can or cannot receive marketing > Person > can receive > email marketing.
Rewards:
Bring on the excitement. Show potential VIP customers the benefits they could earn by being part of your loyalty program. Offer VIP discounts on their next purchase to encourage them to become part of your VIP community.
RFM groupings
If you’re a Marketing Analytics or Advanced KDP customer, you can use RFM properties in your segments. RFM properties give you even deeper insights into your customers’ purchasing history, allowing you to better tailor your messaging strategy.
Who they are:
Customers who purchase recently, frequently, and at a high monetary value; but unlike a “blended” segment, Klaviyo builds this for you!
Example use case:
You’re alarge business with a variety of product offerings ranging in price and typical frequency of purchase.
Segment criteria:
Your segment will include your RFM Champions.
Segment conditions:
- Properties about someone > Current RFM group > equals > Champions > Type: Text
Rewards:
Provide early access to sales or exclusive discounts to these customers. Try asking them for reviews of your products, or encouraging them to refer a friend to your brand.
Determine your joining process
When constructing a VIP program, you must decide how you want customers to join your program: automatically by eligibility, or via explicit sign-up for your program.
Join automatically
You may choose to automatically assign someone VIP status as soon as they meet your VIP criteria. This is a great way to execute surprise and delight moments for shoppers as soon as they qualify.
Make sure that when you promote your program, you’re clear on the eligibility criteria so customers know what actions they need to take to qualify. Your VIP welcome flow should trigger as soon as someone joins your VIP segment, confirming they’ve achieved VIP status.
It’s important to remember that some people who join your VIP program this way may not be aware of what your program is; they may have just coincidentally met your criteria. Use your VIP welcome flow messages to explain your program structure and benefits so they understand the perks of being a VIP and continue shopping accordingly.
Sign-up manually
Conversely, you may require shoppers to sign-up to be a part of your loyalty program. When promoting your program, include clear instructions for sign-up to make the process seamless.
You may choose to gather VIPs through sign-up form submissions of subscribe pages. If you so, ensure that your VIP segment criteria includes that each profile has submitted your VIP form.
With this structure, you know that your VIP’s are intentional and invested in being a part of your program. Deliver benefits and incentives front-and-center within your VIP welcome flow, use friendly language, and a clear next action.