As an Internet marketer, it’s only natural that you’d be constantly trying to grow your customer lifetime value (CLV). New customer acquisition is an important part of marketing regardless of your industry or the size of your business.
However, you shouldn’t be overlooking the fact that customer retention is equally crucial for success. In fact, the book Marketing Metrics says that there’s a 60-70% chance of selling to an existing customer. You only have a 5-20% chance of selling to a new customer in comparison.
Here I’ll bring you easy to understand 8 post-conversion strategies that you can use to increase your customer lifetime value:
Contents
1. Listen to your customers
Your business will have a much better chance of increasing customer loyalty if you make constant improvements. To do this the right way, you need to determine what your customers want. Brainstorm a few ideas for change and turn it into a poll. Let your customers access it through your blog or social media profile.
Make sure there’s room for customers to suggest improvements that aren’t listed too. Providing some kind of incentive for their participation is a great idea to boost your responses. For instance, you could offer a small discount or even a chance to win something. If you end up implementing the suggested changes, give them credit for helping out.
They’ll love being recognized, which will improve customer lifetime value.
2. Feature your loyal fans
If you have fans sharing your content or talking positive about your brand, put them in the spotlight.
Be responsive to let your fans know how much you appreciate them. This is an effective method to get customers to prioritize your business and also reach out to their connections.
Take the example set by Soda Stream, which regularly features fans on its Facebook page and blog. They keep their fans engaged through contests and make sure people know who won.
Try coming up with fun, engaging contests.
Create a buzz around them to get more followers to participate. Publicly feature the winners of those contests so that more people feel compelled to participate in the future.
with fun, engaging contests. Create a buzz around them to get more followers to participate. Publicly feature the winners of those contests so that more people feel compelled to participate in the future.
3. Be there for customers
You must be attentive to customer complaints and issues reported through your social media page or blog comments. Being responsive is key for customer lifetime value. These are crucial touch points that are visible for everyone to see.
Give followers proper assistance to resolve any confusion or issues. Alternatively, you can get them connected to someone in your official customer service channel who can help.
According to a study conducted by ZenDesk and Dimensional Research, people who have had a bad customer service experience are 50% more likely to take it out on social media than those who’ve had a good experience.
This means that you need to prioritize on manning your social media accounts regularly. Good communication skills and empathetic listening are essential to increase customer lifetime value.
4. Send something they’d appreciate
Take an interest in what customers enjoy or care about so that you can send them something they’d appreciate. You can get some ideas on what to send by going through their social media accounts.
There could be books, movies, games, hobbies, or activities they talk about frequently. You could send booklets, posters, or accessories based on these interests. Don’t underestimate a simple hand-written “thank you” note though. Showing gratitude with every purchase will work wonders for your customer lifetime value.
5. Stay convenient
People appreciate it when they’re able to do business as quickly and conveniently as possible. Focus on making things simpler for your customers when they interact with you or make a purchase.
For instance, an auto-fill feature minimizes the need for customers to enter the same old details for each purchase. You can also add a button for customers to sign in using their social media accounts.
6. Reward customer loyalty
If you have a bunch of customers who are loyal to your brand, it’s only fair that you reward them. Set up a loyalty program in which customers can store reward points for every purchase.
Allow them to spend these points later on something from your store.
For instance, the restaurant chain Boloco rewards customers for every $50 they spend. The reward points are measured in dollars, thus making it easy for customers to keep track of their reward status.
You could also reward customers in the form of a free upgrade. Look out for people who are actively engaging with your brand through your blog and social media page.
These are the ones you could reward with elite upgrades. When streaming was just being introduced, Netflix offered it as a free add-on for existing customers. As a result, they became the chart leaders for brand loyalty in 2011.
7. Give them something exclusive
Offering your customers something exclusive is a good way for your business to stay one step ahead of competitors. This isn’t about sales and discounts, but more about services, features, and resources.
You should be offering a superior product, which will easily put you ahead of any competitor. Also, prioritize on providing superior customer service by going the extra mile for your customers. All of these factors combine for good customer lifetime value.
8. Cross-sell necessities
Create a pleasant shopping experience for customers by cross-selling. If a customer is buying something, give them a bundled offer involving accessories they could use along with a purchased product.
For instance, a customer buying a smartphone might be interested in a protective cover or earphones.
This tactic has been successfully implemented by Amazon and other eCommerce brands to capitalize on each sale. In addition to helping you gain more revenue, this is an excellent way to show your customers that you care about their interests.
It’s also highly convenient because customers don’t have to waste their time looking for related products they were probably going to look for anyway.
Conclusion:
The eight strategies mentioned above can be used to help most businesses increase their customer lifetime value. However, they might not all work for each and every type of business. This is where you need to analyze each strategy and find out how you can implement them to your business.
If you have your own stellar idea on how to increase customer lifetime value, I’m all ears. Use the comment section below to get in touch with me.
