Typically, it is convenient to hold on to existing customers than acquire newer ones. Even then, most businesses plan to get new customers, investing a significant amount of money on them. For them, customer retention comes after the acquisition, which might be their biggest hurdle. By hurdle, it means losing many existing customers, all the while focusing on new ones.
As a marketer, you should retain the current customers of your business. Simultaneously, it would help if you were working on getting new customers. It is the appropriate way of conducting business, intending to achieve Customer Lifetime Value.
While creating the next marketing budget, keep in mind to invest more in retaining your customers. As mentioned above, you will have to work on increasing Customer Lifetime Value. To do this, you can implement some effective marketing strategies. By doing thorough research and taking one step at a time will surely help in achieving business growth.
Before proceeding ahead, let us first learn about the term ‘Customer Lifetime Value.’
What is Customer Lifetime Value?
Customer Lifetime Value (CLV) depicts the total net profit that a firm can obtain from a single customer over time. It shows how much each customer has contributed to the business’s net profit. When CLV is high, it becomes evident that each customer is bringing more revenue to the firm.
Such customers hold a special place in the firm, and they are considered more valuable than others. A high CLV also displays its ability to retain such valuable customers and plan on acquiring more. The opposite happens with a low CLV, where the existing customers do not provide much value to the firm. Since the firm is interested in a higher CLV, it should make appropriate marketing strategies to obtain it.
One of the marketing strategies is Link Building, where backlinks improve the website’s visibility. You can easily avail of reliable Link Building Services, Link BuildingHQ, and obtain a higher CLV over time. Some other strategies to achieve Customer Lifetime Value will be:
1- Increasing customer engagement with high-quality content
If you want a higher CLV, you will have to keep your customers engaged. The best way to do this will be by producing high-quality content. Many businesses do not focus on their content quality, which later fails at pleasing the customers. If your customers will not find the content relevant or interesting, how will you gain higher profits? With the help of value-packed visual and written content, you can retain your customers for a long time.
Email marketing can assist you in staying connected with your customers. However, be very particular while drafting your emails. Here is how you can engage customers through email marketing:
- Give weekly or monthly reminders to your customers about your services or products.
- Inform them about the latest updates with catchy subjects.
- Write in an attention-grabbing manner, with some value-adding details.
- Draft a personalized email to remind them how important they are.
2- Offering superior value to the customers
To experience rapid business growth and increase the CLV, you will need to invest in high-end customer services. By offering superior value to your customers, you can make way into their hearts. Good word-of-mouth can go a long way, especially about the services you offer. Through offering high-end services, you are informing customers about your never-ending efforts.
If you do not offer any superior value to them, they will rate your service ‘below average.’ Research shows that almost one-third of customers switch brands right after experiencing poor customer service.
So how can you offer high-end services to your customers and achieve CLV? Here are some ways to do that:
- Providing everlasting offline and online support to them
- Resolving customer queries promptly
- Omni-channel marketing and staying active wherever possible
- Employing responsive, well-trained, and devoted support team members
- Monitoring the feedback on social media platforms
- Chatting live with customers
3- Paying extra attention to your customers’ needs
As a marketer, you should effectively listen to your customers’ needs. If you will not do that, who will? Always remember that a satisfied customer is a loyal customer. There is no point in planning to grow your business without paying attention to your customer’s needs. It can be quite tricky to pinpoint where you stand in a customer’s mind, but it is impossible.
The best way to know this will be by paying close attention to what your customers want. Is it an improved service or a newer version of your evergreen product? As soon as you find out about their needs, the picture will not remain blurry anymore.
Just like that, by paying attention, you can showcase your priorities as a marketer. It will communicate to them that they always come first. When you fulfill their requirements, they will appreciate doing business with you and spread the word. Not only will you succeed at retaining them, but soon potential customers will reach out.
4- Start indulging in personalized offerings
Who does not like to feel special? Everyone does, especially the ones you do business with regularly. When it comes to achieving higher Customer Lifetime Value, it is essential to make your customer feel special. Besides offering superior value and fulfilling your customer’s needs, you can also provide them with a personalized experience.
To satisfy your customers, start indulging in personalized offerings and wait to witness your business’s success. By implementing personalization tactics, your customers will buy products and services from you. For them, you will come first, just like you prioritized them in the first place.
Through personalization, you can convey the message that they are precious and delighted. Almost 77% of customers have spent a large sum of money on brands that offer a personalized experience or service.
Here are some benefits of personalized offerings:
- Through personalization, you can effectively communicate with your customers at the right time and place. By doing so, you will be able to predict if a customer will shop again or not.
- By interacting with your customers, you will know them better, improving your marketing tactics.
- It will help in delivering an improved customer experience with a better user interface.
- Personalization assists in drafting in-app custom messages for each customer, which increases the odds of grasping their attention.
- It guarantees customers that they are in an actual relationship with the business, instead of being profit-making puppets.
All in all, you can enhance Customer Lifetime Value with the help of the strategies mentioned above. However, try to be vigilant with these approaches and focus on satisfying your customers one way or another. Their happiness and gratification will churn fruitful results in the future. You will soon drive more traffic to your business, generating higher profits from an increased number of customers.
Now you know why existing customers are more important than bringing in more customers. So why not achieve Customer Lifetime Value and then work on acquiring new customers.