Customer Lifetime Value (CLV) is a term used to describe how much revenue a customer will generate for your business during the course of their relationship with your business. By increasing your CLV you help build meaningful and long-lasting relationships with your customers which will ultimately lead to increased profits.
Let’s look at eight tactics you can use to help increase your customer lifetime value.
1. Your first impression – your first interaction with a customer is one of the most important interactions you’ll have. Your first interaction with your customer is the starting point of your relationship so be sure to put your best foot forward.
Make your first interaction with your customer as personalised as possible and ensure that you show your customers the value of your offering from the get-go.
2. Provide valuable content – use your email marketing to its full potential by providing your customers with content that provides value. Send your customers emails that highlight your product or service whilst providing them with content that can be seen as valuable such as videos and blog articles.
Setting up a customer journey with a balance of educating, selling and providing value will be the most effective in helping increase your CLV.
3. Ask for feedback – ask your customers for feedback on where you can improve. Surveys are an excellent way to get feedback from your customers and to find out how you can make improvements in your business.
Be sure to acknowledge your customers who provide feedback and do your best to make improvements where possible.
4. Be there when your customers need you – customer support is crucial when it comes to increasing your customer lifetime value. You need to ensure that you offer support to your customers when they need it.
After-sales support is particularly important as you want your customers to still feel valued and cared for even after they have parted with their money.
5. Build strong relationships – building strong relationships with your customers is key to maintaining and increasing your CLV. Spend time to get to know your customers better by understanding their needs and interests.
Connecting with your customers on a regular basis is one of the best ways to build strong relationships. Sending regular emails to your customers is an easy and effective way to stay in touch and forge these relationships.
6. Get personal – try to give your customers a more personal experience. There are a number of ways that you can do this. For example, you could tailor your content to make your customers interests or even just include your customer’s details in your communications to them.
7. Reward customer loyalty – take care of and build relationships with your loyal customers. There are a number of ways that you can reward customer loyalty that all differ and depend on your type of business.
The idea of rewarding your loyal customers is to offer them something additional of value to thank them, this could be anything from free shipping to exclusive gated content. The options are endless but the goal remains the same – relationship building.
8. Upselling and cross-selling – educate your customers about your other products or services. It is easier to sell to someone who is already a customer than to try and sell to someone who knows nothing about your business or your offering.
Keep your customers up to date on all that you offer as a business so that you can either upsell or cross-sell to them. You can offer your customers trials of your additional products or services as a way to reward customer loyalty.
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To ensure the success of your business you need to be sure to build relationships with your customers and do what you can to increase your customer lifetime value. As much as you want to be constantly building new relationships with new customers, you need to still focus on maintaining your relationship with your current customers.
Get in touch with us if you’d like assistance on setting up your email marketing customer journeys to help you increase your customer lifetime value. Our team of email experts would love to assist you.