One important metric that all businesses need to pay attention to and find ways to maximize is Customer Lifetime Value (CLV). CLV is the amount of money that a customer will spend on your business throughout the course of your relationship, so it is a long-term figure as opposed to a single order and it is particularly important for smaller businesses that will want to get the most out of a smaller customer base compared to a much larger business. So, what are a few of the most effective strategies for maximizing CLV? Read on for a few ideas.
Customer research
It is difficult to get a customer to continue spending money on your company if you do not have a clear understanding of who your target customer is. When you know what their wants and needs are, why they are purchasing and what their personality is, it enables you to improve your marketing and find ways to develop strong relationships that are so important for brand loyalty.
Benefits for loyalty
Leading on from this, another smart tactic to use is to reward customers for their loyalty. Getting a discount off their 3rd order is a typical example of a loyalty program and an effective way to encourage people to continue to use your brand over the competition’s.
Upselling
Another way to maximize CLV is upselling, which simply involves inviting customers to purchase items in addition to what they are already purchasing. This can be a highly effective way to increase each order value, especially when you are able to offer personalized suggestions that they may have missed when browsing.
SMS marketing
In order to keep your customers coming back and spending their money with your business, you need to be able to stay in touch with them, and there is no better way to do this than text message marketing. You can use text messaging software to deliver high-quality, engaging and personalized text messages to your customers so that you can stay in their mind as well as build stronger connections.
Go the extra mile
Consumers will always use a brand again if it provides above-average customer service and this can make a huge difference to your relationships with your customers. Going the extra mile, offering omnichannel support, thanking customers for orders and 24/7 customer support are just a few ways that you can impress with your customer service and encourage people to spend more with your business.
Stay relevant online
Finally, you need to stick in the mind of the consumer by staying relevant online. Publishing high-quality and valuable content for your customers on social media and engaging with comments will help you to stay in the mind of the consumer, but you must also avoid posting too much otherwise you could lose customers.
Maximizing CLV will help any business to find long-term success and grow, but it can also be hard to get customers to spend more money on your business over the long-term. The above are the best strategies to achieve this and should help to deliver noticeable results.
