Why Do Your Top 5% of Customers Need a Different Retention Strategy?

Author: AB
Jul 14, 2025
Why Do Your Top 5% of Customers Need a Different Retention Strategy?

Introduction: Not All Customers Are Equal. And That’s a Good Thing

In retention marketing, it’s easy to focus on the averages. Average order value. Average open rate. Average lifetime spend. But in reality, averages can be misleading, especially when your top 5% of customers may account for 30% to 50% of your revenue.

These whales, or high-value buyers, don’t just buy more. They think differently, respond to different messaging, and expect more from your brand. Treating them like everyone else is a missed opportunity.

In this post, we’ll break down why your top 5% of customers need a separate retention strategy, how to identify them, and the tailored flows, offers, and storytelling that help grow their lifetime value.

How to Define Your Top 5% Customers

Start by segmenting your entire customer base using RFM analysis Recency, Frequency, and Monetary value. From there, rank customers by total revenue generated. You’ll likely find a small segment responsible for a disproportionate share of revenue.

Your top 5% customers typically:

  • Have placed 4 or more orders

  • Spend 2 to 3 times more than the average buyer

  • Consistently return within short time windows

  • Rarely rely on discounts

In Klaviyo, you can build a VIP segment using filters like:

  • Placed Order Count ≥ 4

  • Total Revenue ≥ [$X]

  • Last Order Date within the past 90 days

Every brand will have different thresholds. The point is to identify your elite group based on how much value they bring, not just how often they shop.

Why They Need a Different Strategy

High-value customers aren’t driven by price. They are driven by status, exclusivity, experience, and meaning. These customers are your superfans. They are more likely to:

  • Refer others

  • Engage with your content

  • Stick with your brand during downturns

  • Buy without waiting for promotions

But that loyalty doesn’t happen on its own. It must be nurtured with a different retention approach that goes beyond the standard welcome or post-purchase flow.

1. Create a Dedicated VIP Flow

This is your backstage pass for whales. After a customer hits your VIP criteria, enter them into a custom flow that acknowledges their importance and creates emotional lift.

What to include:

  • A thank-you email from the founder or team

  • Exclusive early access to new products

  • Priority customer support information

  • Invitations to join a closed community or review program

The key is personalization and prestige. Your best customers should never feel like just another name on a list.

2. Offer Tiered Perks Without Always Discounting

You don’t need to slash prices to retain high-value buyers. Instead, offer perks that match their mindset.

Ideas include:

  • Free expedited shipping

  • Gift-with-purchase

  • Private shopping events

  • Exclusive colorways or bundles

Make sure these benefits are communicated clearly through email and reinforced post-purchase. This gives VIPs something to look forward to that isn’t based on price cuts.

3. Use Dynamic Storytelling and UGC

Your top 5% customers likely identify with your brand. Double down on that by using email campaigns that share behind-the-scenes stories, customer spotlights, or personal anecdotes.

Try:

  • “Here’s how our community is using [product]”

  • “Meet our longtime customer, Rachel, and her 10-order journey”

  • “How we created this new launch based on your feedback”

Great storytelling makes VIPs feel like they’re part of something. Not just buying from it.

4. Send Priority Campaigns First

When launching a new collection or campaign, let VIPs hear it first.

Create a segmented launch campaign that says:
“Because you’re one of our top customers, we’re giving you early access before the public release.”

This builds exclusivity and shows appreciation without altering pricing.

5. Ask for Input. Then Act On It

High-value customers want to feel heard. You can deepen loyalty by inviting feedback through surveys, polls, or one-on-one email requests. Ask about:

  • Product ideas

  • Packaging feedback

  • Brand experience

When you implement something based on VIP input, highlight it in your emails. This closes the loop and turns engagement into trust.

6. Monitor VIP Churn and Re-Engagement Opportunities

The worst mistake is losing a whale without even noticing.

Set up smart alerts or segments for:

  • VIPs who haven’t ordered in 60 to 90 days

  • VIPs who stopped opening campaigns

  • VIPs who recently left negative reviews

Don’t treat these like regular churned customers. Create re-engagement flows tailored for VIPs that remind them of their importance, offer something thoughtful, and reignite the relationship.

Your VIPs Are Your Business Engine

Brands that scale sustainably know one thing. Retaining your top customers is easier and cheaper than acquiring new ones. But that only works if you treat them differently.

Your top 5% don’t want blanket campaigns. They want recognition, elevated service, and meaningful connection. Build for that, and their loyalty will reward you many times over.

Want Help Building a VIP Retention Engine?

At WERTEC, we design advanced segmentation strategies and high-value customer flows that increase lifetime value without relying on heavy promotions. Let’s make your top 5% feel like your top priority.