In another post titled “How to maximize customer lifetime value” we explored how you can maximize your customer lifetime value (CLV) which touched upon some of the areas we will cover more in-depth with this post. Understanding CLV and knowing how you can maximize it is important to profit margin. The following offers ways you can earn a competitive advantage by focusing on ways to increase CLV.
Up-sell and cross-sell
You can target your best customers and develop a cross and up selling campaign designed to get their attention. Center these campaigns around increasing profitability of each purchase your customers make which will increase their current net value. If you can raise the revenue you expect out of your customers you can raise their CLV.
Keep your customers happy
Happy customers are loyal customers and loyal customers are long term customers with a high CLV. As mentioned previously, if you instill loyalty into your customers they will come back. In order to achieve this you should solicit feedback through small customer surveys sent in email campaigns asking them about their experience and what could be done to improve service in the future. You could also add a reviews section to your site and encourage customers to visit it to enter their feedback as well. This feedback will be valuable in understanding what they like and dislike which will make it easier for you to learn how you can retain them.
Focus on every high level customer
If you have the resources, focus on every customer but if you can’t then focus on your best ones. You have an opportunity to make every customer satisfied every time they place an order or connect with your company for any reason. Make sure these interactions are positive. If your customers feel they can trust your company they will most likely buy from you again.
Customers hate being treated like a number every time they make an online purchase unless they dislike human interaction. You can engage an aggressive content management plan through social media announcements, special offers, service or product upgrades, and a great communication and customer experience. After your customers understand your passion for better serving them they won’t want to go anywhere else.
Display a sense of urgency
You can drive repeat business by creating a sense of urgency with your customers. Campaigns with phrases such as “limited time offer”, “one day only”, or “quick sale on remaining inventory” create the illusion that customers have to act fast so they don’t miss out on a great deal. You can distribute a sale campaign letting customers know of a list of products or services that will only be on sale for a limited time. Offers for 24 hour sales that offer a large discount work well to generate fast responses.
Referral program incentives can help you generate new business with your current customers in a win-win situation. You can offer special discounts to your customers who refer friends and family. Your customers will be pleased with the discounts and you won’t have had to spend time or effort in advertising to those new customers.
Adopt a chatbot
As mentioned above, you can increase customer lifetime value by keeping your customers happy and focusing on every high level customer. One of the ways to achieve this is to adopt a chatbot on your website. Chatbot adoption may sound complicated and costly. However with ONE.AI chatbots this is easier than said. In this blog post we show simple and inexpensive chatbot adoption solution.