Wait…What is customer lifetime value?
The lifetime value of a customer, or customer lifetime value (CLV), represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime. This is an important figure to know because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones.
Now that you know what it is… let’s review some tips on how to increase it.
When a customer is ready to purchase, there is an opportunity to recommend additional products or upsells that they might be interested in. You’ll see this regularly with sites like Amazon. You know what this looks like… “Add to Cart based on your interests”. You can include upsells in your business both for e-Commerce and service-based businesses.
Promotional offers are a great way to get customers to purchase more products or services. Everyone understands the value of a sale or promotion and most business owners have experienced this previously. What sort of promotions would be helpful to get more purchases quickly for your business?
As you know, email marketing gives a business owner the opportunity to build and nurture relationships with their customers. Email marketing is important and you just need a few things to get started. Check out my other blog post for details (Oland add link here…).
Loyalty / Rewards
Setting up a loyalty card system or offering reward points is a smart way to encourage customers to return on a regular basis. A good example of this is a coffee store. Every time a customer purchases a coffee, they’ll get a stamp on their card. When they purchase enough coffee, their next coffee is free. How can you set up a loyalty program with your business?
Every company has a certain number of customers that they could consider “VIPs”. These would typically be the customers that are spending the most money with your business. It’s really important to treat these customers well and to build strong relationships with them. An example of this could be sending out an extra newsletter to your VIP customers or provide them access to better pricing options. You could even provide early access to new products or services.
Do you need help increasing your customer lifetime value?
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