Question: Do retailers have a way of determining what their avg customer spends per month or year? How would they capture this data?
Could a retailer come up with a scale that shows, for example, X% of our top customers spend $Y amount on avg and account for Z% of total sales each month, and X1% of our lowest customers spend $Y1 and account for Z1% of total sales?
Answer: Yes, many retailers capture this data at Point of Sale by either asking for a phone number, or having a loyalty program that the customer shows their card to tie the sale to their account. They know the average spend for the top 20% and the bottom 20%, the time of day and day of the week when they most often shop, the price points and brands they respond to etc. This is a very sophisticated process and even the lower end POS products today can provide this