6 Proven Strategies to Improve Customer Lifetime Value
Customer lifetime value (CLTV) is the aggregate revenue you obtain from a customer for a long period, in other words, the longer you keep a customer, the higher the returns on the bottom line. For instance, if a customer purchases your products or services monthly, they will acquire higher customer lifetime value than a customer who buys your products every other month. Focusing on increasing your customer lifetime value is therefore extremely beneficial to improving the profit of the business. Here we will explore, several strategies you could use to improve your customer lifetime value:
1. Communicate with your customers
Trust is the foundation of any relationship, including the business relationship. Being in constant communication with your customers helps build trust. If you want to increase your company sales over time and improve customer lifetime value, create an influential brand by developing a good working connection with the clients.
Communicate with them your work strategies and meet their expectations of your products. You can use email marketing, sending campaigns to your clients on special occasions such as on their birthdays with distinctive discounts.
Following the communication which implies both directions, you need to make time to view and internalize their feedback.
2. Go beyond for your clients.
Cherishing your clients can be done in an easy way, such as doing something exceptional for them. You don’t necessarily need to sell something to them, but be connected with them, such as sending a personalized thank you message or (virtual) gift based on their preferences. These gestures add a human touch to the business interaction with the benefit of increasing customer lifetime value.
3. Improve customer satisfaction
The satisfaction of your customers is strongly correlated to the lifetime value. If you experience unsatisfied customers, pay attention to them. Ensure that your clients can leave feedback on their experience with your products or services. This way, they can help point out some areas that you need to make improvements to.
4. Convenience
Make your products and services more convenient and easy to access. Include all those small things that make your customer enjoy hassle-free services or products, such as auto-billing, reminders, notifications, refills, etc.
5. Offer a solution to your client.
Provide your customer with solutions that make their life easier regularly. Understand what your customer wants and prefers and build and improve on it. You need to have discovery sessions with your customers and understand “what’s missing” to make their life easier.
Over time, make sure that you can follow up with the product team to make a better product or service that will offer even a better solution to your customer’s problems.
6. Provide high-quality customer service
In a Microsoft study, 47% of customers have chosen to switch to a different brand due to bad customer service.
Offering a high-quality customer experience is essential to grow your business and increase customer retention. High customer service and high-quality products and services, in turn, make existing customers be long-term customers.
Consider having multiple communication channels to support your customers such as email, phone call, ticketing system, or live chat. Ensure that there is a fast response rate for your clients if you cannot offer 24/7 support.
Conclusion
Increasing customer lifetime value is one of the most important metrics to improve for any growing company. Here we explored six actionable ways you can employ to increase CLTV:
- Have constant communication channels with your customers
- Go beyond for your clients
- Improve customer satisfaction
- Make your product or service convenient
- Offer and improve the solution to your client
- Provide high-quality customer service