7 Tips for Increasing Customer Lifetime Value:
Retain Your Existing Customers
Throughout their lifetime, customers will spend a dollar amount at a company, this is how “customer lifetime value” (CLV) is calculated. Increasing their CLV, meaning keeping your existing customers happy, is an essential strategy for any business.
Even with that being the case, there are so many businesses that de-prioritize customer retention and focus mainly on new customer acquisition. Even though it’s important to earn new business so that your business can grow, it’s extremely important that you take care of your existing customers.
Statistics show customer retention is highly profitable—repeat customers generally spend 67% more than new customers. They’re already acquainted with your brand, and if you’re doing it right, they likely already had a positive experience with it.
So, now you might be wondering, how do you retain the customers you already have? There are tons of ways, and we’ll cover some in the visual below from GetVoip. In it, we’ll cover seven tactics to increase your CLV.
For instance, one great way to retain customers is to make sure they have an amazing experience when interacting with your service or product. Depending on the type of business you have, this can mean offering great customer service, a stellar website experience, or an amazing in-person interaction.
Another, less obvious example, is to use user-generated content to your advantage. When a loyal fan photos on social, you can share their image to your company account. This kills two birds with one stone, it’s great social proof, but it also allows them some visibility!
There are a bunch of awesome ways to make sure your customers feel valued, appreciated and heard—that is what makes a loyal customer. And loyal customers not only making repeat purchases but spread the word about your brand to their friends and colleagues!
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