How to keep your customers around? It depends on how much a customer is worth to you.
If you are in e-commerce business for years, you already know the battle of advertising over a flood of new users. Sometimes the ad spend stagnates that turns down a new company for nearly all of the customers are coming out or just ignore the ad. Scaling advertising is difficult and it’s undoubtedly a pain business retail marketing has always faced.
While first-time customers are great, one-time buyers could leave a hanging question on the mind. See how you can make smart decisions with Customer Lifetime Value (CLTV/CLV) and keep shoppers stay for life!
A Complete Definition of CLTV
Customer Lifetime Value is a prediction of the net profit with a customer. It is considered to be the most important metric for understanding shoppers helping businesses to make the best customer support, sales, product development, and marketing strategy. The calculation is derived from the entire relationship the company has with the client.
We don’t know how long the relationship will last and CLV is used as a periodic value to make a good estimate. This tool allows you to measure a certain customer’s journey in your store from start to finish and estimate each touchpoint.
Knowing the total value of the buyer brings to a retailer throughout their relationship is pretty difficult and CLV can help you measure it and make near to perfect evaluation.
Strategies to Increase CLTV
Level up your customer service because customer satisfaction is really a big thing. Train your staffs to be a customer expert pro so they could capture their customer’s heart and improve their experience.
Offering loyalty programs is one of the most effective strategies you can use to keep customers stay a lifetime. By giving them something back will help them feel they are valued for staying in the business resulting in an even longer stay.
Upsell and Cross-sell
There are two other great ways to increase CLTV – upselling and cross-selling. This technique is all about making more sales per customer than just wasting time getting only one sale to many shoppers.
Personalized service is fast becoming the norm in various businesses when it comes to increasing customer lifetime value. If you want to higher your profit, retain customers by tailoring your service to their individual needs.
To impress customers, the packaging itself should have a ‘wow factor’. Make sure your design differentiate your brand. The delivery process is not controlled by retailers but they can ensure that they can receive a great packaging feedback.
The Best CLTV Formula
The best way to increase customer lifetime value is to use efficient tools that easily track and monitor customers – the blood of business. Knowing their needs and wants and making them feel valued will improve customer retention even higher.
Most e-commerce businesses use WooCoommerce Point of Sale systems to track and monitor their shoppers the easiest way. Try it out yourself.
How to make your CLTV formula perfect? Keep on playing with the possibilities!