How can you keep your existing customers coming back to you? This is important as you won’t need to acquire new ones all the time. There are measures you can apply to increase customers value and drive growth.
How to Increase Customers Lifetime Value (CLV)
Customer lifetime value shows the total worth a customer brings to a business over the whole period of his/her interaction with that business. Did you know you can measure the customer lifetime value?
All you need is to multiply the average order total by the average number of purchases in a year and then multiply that by average retention time in years. For example, if the average customer spends $1000 per year for two years while interacting with your business, your store’s average CLV will be $2000.
So, how can you boost the CLV?
1. Offer an Exceptional Customer Experience
This is one of the fastest ways. Work on constantly improving your customer experience. Recent research from PWC shows that 86% of buyers would pay more to those companies that offer great customer experience. Moreover, a Walker study has revealed buyers are viewing the customer experience as a more significant factor than price and product when evaluating a brand.
2. Offer Packages
Packages boost customers’ willingness to continue to buy from you after their first interaction with your company. This way, you can build a solid loyal customer base in the long run.
3. Loyalty Incentive Program
Thanks to a good loyalty incentive program, you can retain customers after their packages have reached the expiration date. You can come across many businesses in any industry offering, e.g., point systems to reward loyal customers.
4. Email Marketing
Offer your customers discounts and special offers via email. Also, consider sharing tips and helpful content about how they can use your product or services. Engage with your customers through a birthday or special event emails, as well as through messages on special occasions.
5. Focus on Your Unsatisfied Customers
Never ignore negative reviews. Make sure to respond to them or contact the unsatisfied customer via phone or email.
All these steps are essential, however, if you lack enough working capital to grow your business, you can’t succeed. Thankfully, there are reputable business financing providers such as reliable alternative online lenders like First American Merchant.
FAM boasts an A+ rating with the BBB for offering unmatched business funding solutions to customers both in the low and high-risk industries. The rates are among the cheapest. With FAM, you can enjoy fast and hassle-free access to the necessary working capital and increase customers loyalty.
How to Increase Customer Lifetime Value (CLV)
By increasing customer lifetime value, you can retain your existing customers and grow your sales. There is more than one step that you can take in this regard. Also, make sure to work only with a true business funding expert to have access to additional funds you may need.