Use These 7 Tips to Increase Your Customer Lifetime Value | Over the time they have a relationship with a company, customers will spend a certain amount on a company’s services, products or goods, this is what we call their “customer lifetime value” (CLV). Increasing a customer’s CLV, is an essential strategy for any business—and this typically means keeping your existing customers happy.
It seems simple, but there are so many businesses that devalue customer retention and focus solely on new customer acquisition. Of course, it’s smart to attract new business to make sure your company continues to grow, but it’s also extra important that you nurture relationships with your existing customers.
Did you know that repeat customers generally spend 67% more than new customers? After all, they’re already familiar with your brand, and if you’re doing it right, they already had a positive experience with it.
Another interesting stat is that just a 5% increase in customer retention can increase your profits by 25%. We’d say that’s a pretty great ROI! Especially when so many customer retention tactics have benefits that are more far-reaching than just keeping customers. They help you build an overall brand reputation of excellence.
So, what are some ways you can keep your customers happy? There are many ways, and we’ll discuss some of them in the infographic below from GetVoip. In it, we’ll cover seven tactics to increase your customer lifetime value.
For instance, one of the most simple ways to ensure you keep the customers you already have is to make sure they have a stellar experience when engaging with your service, product, website, or store. For an in-person business, this would mean ensuring that they are treated like family while they are at your establishment.
For online businesses, this would mean making the online experience as easy and seamless as. When they have a stellar experience, they’ll be telling their friends about what an amazing experience they had with you!
Another really fun way to build bonds with your customers is through user-generated content. When your loyal fans post photos on their social media channels, you can share them with your company account! This is a win-win because it allows them to feel famous for a day, and get tons of attention and maybe even some followers. For you, it’s free content and you’ve just made customer’s day. You can bet they will come back to buy from you again.
Another way to do this, and one that Sephora uses, is to create an online community or portal for people who have purchased your products. From there, you can allow them to share opinions and tips with each other and form a REAL community around your business.
Something that’s along these same lines is to always make sure your customer service goes above and beyond to make sure people feel heard and valued. For instance, Virgin Atlantic did this when they allowed a disgruntled customer to re-design their whole airline’s menu after they had complained online. Going above and beyond can keep you top of mind for your customers and get you noticed in a PR sense as well.
There are so many ways to make sure your customers become repeat customers. Treat them well, think of creative ways to surprise and delight, and you’ll be enjoying that 25% boost in sales in no time!