The customer lifetime value (CLV) is the value of a customer to your business over their lifetime. It’s like adding up all the money you earn from an individual customer, and it’s a vital component in helping businesses know how much they should spend on attracting new customers and retaining existing ones.
However, knowing that CLV is important isn’t enough – you need to take actionable steps in order to increase it. In this post we’ll look at some ways that you can increase your CLV without breaking the bank:
Understand how important every customer is to your business.
Your customers are your business, plain and simple. They are the reason you have a business in the first place. They’re also the ones who will bring you back to life again when you make mistakes or lose your way.
That’s why they deserve all of your attention and care—and it starts with understanding how important each customer is to your organization.
Because let’s be real: It doesn’t matter if you have 1,000 customers or 10 million if none of them stick around for long enough for any of those numbers to matter! Your goal should always be to retain as many customers as possible for as long as possible—otherwise known as “lifetime value (LTV).”
Build relationships with your customers through quality content.
The next time you’re reading an article about a topic that interests you, think about what makes the piece so engaging. Is it the ability to keep your attention and make you want to read more? Does it explain things in simple terms so anyone can understand? The answers to these questions are likely yes, which is why great content has become so valuable in today’s world.
The same thing applies when creating content for your business. Content marketing is one of the most effective ways to reach out to customers, build trust and create relationships with them over time. It also helps boost customer lifetime value by increasing client retention rates and driving new sales through referrals or social shares of your products or services on Facebook or Twitter (or whatever platform happens to be popular at that moment).
Keep communication lines open.
A great way to keep the customer’s perspective in mind is to remain open and honest. If a customer has a question, ask them what they’re looking for. If you don’t have an answer, offer to find one for them—and follow through!
If something does go wrong on your end (and it will), be quick about fixing it. The quicker you respond, the less likely customers are going to leave unhappy or publicly complain about the product or service they’ve received from you.
Delight your customers.
To get the most out of your customers, you need to create a strong sense of value and satisfy their desires. To do this, you must delight them—with something unexpected. Some ideas include giving them a gift, sending a thank-you card or handwritten note, or hosting a contest or giveaway. These actions will make your customers feel like part of the family and encourage them to trust that you’ll always be there for them no matter how much time goes by.
Know who you’re talking to and always tailor your message.
The best way to increase your customer lifetime value is by knowing who you’re talking to and always tailoring your message.
Customer demographics include things like age, gender and location. Customer psychographics are more abstract, such as values and attitudes. Customer behaviors take into account how they act in certain situations (for example: how often they visit your store). Customer attitudes cover how they feel about their experience with you (like if it’s positive or negative). And finally customer needs are what they require at a given time (like groceries). Then there are wants—which are essentially wants that outweigh purchases at the moment but could become needs someday if circumstances shift enough for them to do so.
Ask for feedback and follow up on comments.
- Ask for feedback.
- Follow up on comments.
- Track the value of customer relationships over time by analyzing the lifetime value of each customer segment, and use this information to make strategic decisions about pricing and marketing campaigns that will impact their overall value to your business.
In addition to asking for feedback, you can also follow up with customers who have given specific comments or criticism about your product or service. This will increase their loyalty toward you because it shows them that you care about their opinions enough to make an effort to address their issues accordingly.
Give exclusive offers and discounts to loyal customers.
- Give them something they can’t get anywhere else.
- Give them something that makes them feel special.
- Give them something that makes them feel like they are part of the family.
- Give them something that makes them feel like they are part of an exclusive club (this is where things like coupons come in).
Keep customers happy and they’ll stick around
As you grow your business, you’ll want to keep an eye on customer retention. A high retention rate is good news; it means you’re keeping more customers around longer and getting more value out of them.
But what’s the best way to keep your customers satisfied? By keeping them happy with your products or services! Happy customers are not only more likely to buy again, they’re also more likely to refer others (and those referrals will be valuable). When it comes down to it, happy customers are worth their weight in gold—or whatever currency you prefer.
So what can we do about this? We need strategies that make us feel like our company is worth sticking with as long as possible—and maybe even beyond our expectations! The first step is realizing that there’s no such thing as “good enough.” Every business has room for improvement on customer service or satisfaction levels; it might be a small change here and there but the benefits will add up quickly over time!
Whatever you do, don’t forget about your customers when it comes to retention. The best way to keep them happy is by always keeping in touch and giving them the attention they need and deserve. This will also help you keep track of their preferences so that even if they leave for some reason, you’ll know how best to win them back!