Once you’ve calculated your customer lifetime value, the work doesn’t stop. CLV gives you valuable data about how satisfied a customer is with your products and services. It also helps you understand which customer segments stick with you and which will churn and leave your business. This gives you some important insight into opportunities to define what strategies can help you grow and improve your customer experiences with your brand.
1. Implement Customer Loyalty Programs
Customer loyalty programs are a great way to keep your customers engaged and interested in your business, and encourage them to increase their lifetime with your business. By using gamification techniques, customer loyalty programs incentivize customers to want to spend money and purchase more from your brand. It also personalizes the experience, making it more enjoyable for customers to spend money on your brand’s products and services.
Examples include everything from frequent flier miles to punch cards at restaurants and cafes that offer a free drink or dessert. Companies can also create mobile apps and easy methods of getting points for continued customer loyalty.
2. Focus on Customer Experience
The customer experience refers to the relationship that customers have with your business through every touchpoint they interact with. The adventure starts when a customer first becomes aware of your brand and lasts throughout their lifetime. Creating a great customer experience is one of the best ways to increase loyalty and extend customer lifetimes.
Touchpoints in the customer experience include your website, your social accounts, your advertising and outreach, your customer service process, and your in-person storefront. All of these elements and more work together to create a customer experience that brings individuals back or turns them away.
3. Make a Great First Impression During Customer Onboarding
Customer onboarding is the process through which customers become knowledgeable about your products or services. While onboarding is mostly thought of in B2B terms, all businesses should chart a clear path for their customers, so they are never confused about where to turn. In other words, customer onboarding provides a roadmap for your individual consumers.
Customers can feel confused and abandoned without a straightforward onboarding process by your brand. That means that they might leave and go find a competitor that makes them feel welcomed and appreciated through the onboarding process.
4. Improve Customer Service
Improving your customer service efforts is another way to keep customers around for longer. It goes without saying that not every customer will have a good first impression of your business. Whether it’s a product error or a miscommunication, there will be times that you need to work with a customer in order to save the relationship.
Your customer service teams are a key part of customer retention. If customers feel ignored or that your team didn’t do enough to help them deal with a problem, they will quickly leave you for your competitors. Thankfully, customer service teams can be trained to handle all scenarios and improve your interactions with customers.
5. Invest In Technology and Software
Technology and software services can help you automate, track, and organize your data, so you get better reports and metrics to work with. This enables you to centralize your business and gather important information that you couldn’t if you were manually looking through your data.
Customers can tell when a business has kept up with the times or when they are struggling to meet the pace of the digital world. If a customer doesn’t think they are getting the right level of attention or isn’t able to see the value in your services, they won’t be as likely to stay on as a loyal customer.
6. Streamline Purchasing
The purchasing process for customers can be complicated. While e-commerce has made buying online a more enjoyable experience than over the phone, it can still leave your customers in the dark if not done correctly.
Think of your e-commerce store as an extension of your in-person storefront if you have one. It needs to be organized, easy to navigate, and formatted to fit the screen of the customer’s device. There shouldn’t be too many different pages to dig through or multiple screens prompting visitors to fill out forms. Streamlining the purchasing process improves the overall customer experience and gets higher retention rates.
7. Utilize CRM Software
Customer relationship management, or CRM, the software is an incredibly important tool to capitalize on. It helps to organize all of your customers — prospective, current, and past — into a single database that all your team members can access. It helps you organize your customers as well as your sales and marketing efforts.
CRM software makes it easy for you to categorize and organize your customers for easy segmenting. You can get a clear picture of your customer demographics and their real-life behavior, making it easy to divide your customers into the right groups and segments for more accurate CLV calculations.
8. Request Actionable Feedback
It doesn’t matter how hard you work at improving the customer experience — without feedback; you are only going off your own assumptions. Customer feedback is essential to growing your business and discovering where there are gaps in the experience or roadblocks to success and loyalty with your customer base.
Customer feedback is also helpful in learning more about your products, services, and brand reputation among current users. It can help you understand why some customers leave and give you better insights into ways that your brand can expand and grow over time. You can also use it to improve customer service interactions.
9. Upsell And Cross-Sell For The Customer’s Benefit
Upselling and cross-selling are often viewed as sales-only tactics that run the risk of turning customers away. However, when you learn how to upsell and cross-sell for your customers’ benefit, it actually encourages loyalty and increases the customer’s faith in your business’s ability to predict and meet their needs.
In order to upsell and cross-sell effectively, you will need to have an understanding of your customer’s needs and know what types of products and services can enhance their experience with your company. Having clear customer segments can be a great starting point for an upsell or cross-sell conversation.
10. Provide External Value With Content
Content comes in many forms, including blog posts, social media, videos, podcasts, and downloadable e-books. All of these forms of content can help to provide value to your customers and reaffirm their relationship with the business.
While many might think of content in a marketing sense, it can also help provide value to your current customers. Things like how-to guides, new product demos, and chatbots for customer concerns can all help you encourage customer loyalty among your target audiences and increase the chances of return value and longer customer lifetimes.
Increase Your Customer Lifetime Value With Sales Assembly
Customer lifetime value is an important metric that helps you understand exactly how profitable your customers are during their lifetime of your business. While there are a few different methods to calculate the metric, once you know your CLV you can begin planning new strategies to delight your customers and bring them back to your brand so you can grow.
If you are interested in learning more about how experts can help you to grow and scale your business, then talk to us about ways you can begin your journey to scale better, scale faster, and scale smarter. As the only scale-as-a-service platform in the industry, we have the knowledge to take your company to the next level.