Over their lifetime, customers will spend a certain amount on a company’s goods or services, which is referred to as their customer lifetime value (CLV). Increasing their CLV, meaning keeping your existing customers happy, is an essential strategy for any business.
There are many businesses that ignore customer retention and focus the majority of their budget on new customer acquisition. Sure, it’s important to acquire new customers, but it’s similarly important to nurture your existing customer base.
In fact, repeat customers generally spend 67% more than new customers. They’re already acquainted with your brand, and if you’re doing it right, they already had a positive experience with it.
So, what's our recommendation to retain the customers you already have? Well, there are too many to list, but some of them are discussed in the infographic below from GetVoip. In fact, they'll cover seven tactics to maximize your customer lifetime value.
For instance, it can be fun and engaging to utilize user-generated content to build a relationship with your loyal customers. When they post photos on social, you can share them to your company account and allow them to be Insta-Famous for a day! Or, you can allow them to share opinions and tips in an online community you create solely for them.
Recommended Also: 7 Ways That Social Media Can Increase Customer Retention
Providing a great experience when interacting with your product or service is another way to increase a customer's lifetime value. For online businesses, an example would be optimizing the purchase experience to make it simple and easy for all customers. Ideally, after providing an exceptional experience, your existing customers will promote your brand to all their friends.
Another great tip, albeit quite obvious, is to ensure your customer service is nothing less than exceptional. This may seem like common sense, but it’s not often practiced. Going above and beyond to fulfill a customer's expectations will often lead to repeat purchases and lifelong customers.
There are many ways to make sure your customers feel appreciated, which will extend their customer lifetime value. And the key to a successful business journey is to nurture loyal relationships with your customers, so that they not only make repeat purchases, but spread the word about you near and far!
