Heavy Users - Definition & Meaning
What is Heavy Users?
Heavy users are also known as ‘Big Spenders’ or ‘High Rollers’. The Heavy users generally constitute less than one third of the consumers of goods or services but constitute to more than two third of the sales revenue. Heavy users constitute an important segment where marketing efforts are concentrated.
Generally two different methods are used to differentiate Heavy users, ‘the simple mean comparison’ method and ‘basic cluster’ method. But both have their own shortcomings. Simple mean comparison method generally leads to over generalized non diagnostic profiles whereas basic cluster method overly specific profiles that are mathematically valid but empirically non-existent. In order to solve the problem, a different method called two stage cluster analysis was proposed which helped enhance external as well internal validity.
Examples
According to a recent survey fifth of online Indians are heavy users. Half of India's internet users are online at least 15 days every month and one fifth goes online almost every day, new data has revealed. In US nearly 48% of all families consume around 87% of the total cereals. For example if 10% of all users buy around 90% of a FMCG product, these customers are called heavy users.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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