Customer Lifetime Value – Three Ways To Increase Yours

Every business wants to increase its customer outreach and grow, but what happens to the customers who have already invested and made that crucial first purchase? While you're busy coming up with strategic marketing to entice new clients, it is vital not to forget about the importance of retaining your existing ones. After all, it's quicker and more cost-effective to get a customer to make a repurchase than it is to convert a potential customer into a consumer. This is where customer lifetime value comes in, providing companies a metric of how valuable a customer is during the entire period of their relationship. Once you can see a customer's total lifetime worth, you can increase this value, and any successful business knows that focusing on CLV is an excellent way of creating growth while driving up those all-important sales. Here are three ways to help you to increase yours.

Get Personal

Products, content, and personalised services offer unlimited potential for increasing customer lifetime value. With so much data now available, it is easier than ever to offer promotions, offers, and specific content to customers, even if your overall demographic splits off into various other groups. Tailoring your marketing to your customers will make them feel valued and special, allowing them to always see the most relevant offers. Not only does this mean that they are more likely to convert into paying consumers, making purchases on products that are tailored to them, but they are also more likely to remain loyal to you and make further purchases down the line. This is a great way of increasing your customer lifetime value as well as your sales. 

Improve Communication

Clear, transparent, and open communication between a customer and the brand creates trust and loyalty. By being open and honest (which could sometimes mean even owning up to mistakes), you make your business not only seem more human but one that genuinely cares. Not only should you improve your outbound communication, but you should focus on ways that your customers can communicate and reach out to you as well. In today's world, consumers appreciate companies that allow their voices to be heard over those that don't. Therefore, if you want to increase your customer lifetime value, you have to ensure that all of your brand's platforms have a point of contact that allows them to leave reviews, opinions, and suggestions. You can even go one step further and add a WordPress live chat plugin for website to create a more personalised customer service experience. Addressing customer concerns proactively signals to the customer that you care about them and want to help, making it much more likely that they will return again and again. 

Re-target and Re-engage

It is critical not to forget about those customers who haven't purchased anything from you in a while. Re-targeting and re-engaging is an essential part of increasing customer lifetime value and ensures that your hard work of acquiring them in the first place hasn't gone to waste. Remind them of your business and increase brand awareness through targeted ads and email marketing, sending messages to anyone who hasn't purchased from you in a few months. Make them an offer that they can't refuse to entice them to come back and buy again. Re-engaging previous customers with your brand will remind them what they are missing out on and that you are still there.