Customer lifetime value is all about how a customer is worth to your business. This is calculated by working out the total profits that are generated over duration of a relationship minus the incurred expenses. The goal is nurturing customer loyalty and retaining them beyond the initial purchase. In maximizing customer lifetime value, focus is on building long term relationships, up-selling and cross selling at every possible opportunity, creating stronger brand loyalty, leveraging on incentives and offering unparalleled services.
All the above may sound simple but the truth of the matter is that it is not easy to maximize customer lifetime value. It is for these reasons that this post focuses on some of the crucial things you need to do to improve your customers’ lifetime value as well as loyalty.
- Feature fans in the content
One of the main reasons why most customers abandon a brand is because they feel unappreciated. This is common across industries. Although personalizing your services to all individual customers is not easy, there are a few simple things you can do to make your customers feel valued. One of those things is to embed social media posts from your fans that have shared something about you or shared your posts.
By sharing the posts of fans, you will be showing your appreciation. When they see this, they will make your brand a top priority and become one of your most valuable assets in marketing. Alternatively, you can engage your fans in contests and make other fans know who won the contest. This will create a lot of buzz which will in turn improve customer loyalty. You will also be able to gather user-generated content that you can use later to lure in new fans.
- Give your fans something they never knew they needed
Providing your fans with something they want but they never really knew they needed. This will further increase customer lifetime value. One way of doing this is paying attention to their online activity. This will let you know what they enjoy and what they wish they had. You can then use this data to tailor a product that is unique to your fans. When you do this, they will definitely talk about the new product on social media thereby helping with brand promotion.
If you are not sure of what to give your customers, there are a couple of things you should consider looking at:
- Look at the photos of your fans to see what their activities or hobbies are.
- Read their posts and profile information to know which activities, characters, movies or books they talk about.
- Look at the conversations they have had with their close friends. This will help you know which conversations they care about.
For this strategy to work, you should not pick something obvious. You need to select something unexpected but unique to your audience. A little research will help find that unique something that will make your customers happy.
Take advice from customers
The secret to continued business growth is keeping on improving. You cannot provide your customers with the same exact products and services and not expect them not to be bored. Chances are a new competitor will come in and given them what they have been missing from you.
To keep improving your products and services, you need to take advice from your customers. Don’t always follow your gut or the numbers. Know what your customers want by talking to them. Create an idea pool with their ideas and send it out through your social media accounts, email and blog. Let your customers pick what they want to see next. Do not forget to give credit to the individual clients who contributed to the best ideas.
Another way of listening to your customers is paying attention to the online marketing stats. Which channels are bringing the best results? This will help you know what to focus on and what to ignore. One of the best Internet marketing software you can use to track this information is the Ignitur.
Ignitur is one of the most widely used project management software in online marketing. With a 4.8 stars rating for user experience, the software will help with SEO, social media management, email marketing management, mobile marketing, AdWords management, reputation management monitoring, conversion rate optimization, e-commerce management, local web marketing and so much more. This is the ultimate tool to use if you want to learn more about your customers.
- Give your customers an upgrade
From time to time, you need to change the way your products look. If you have a product line, provide your customers with something they have not tried before. If you offer premium services, give them an upgrade for free. Although this may seem expensive, the cost is small when compared to the impact of happy customers promoting your brand to their family, friends, social followers and colleagues.
- Be available when your customers need you
The worst mistake you can make in your effort to build customer loyalty is to be unreachable when they need you most. This is more so if they have a problem with their products or service and you are unavailable to help them out. This is the fastest way to lose even the most loyal of customers.
With goal being to maximize customer lifetime value, your everyday goal should be being available when your customers need you. When they post something on your timeline, you should do your best to respond as soon as possible and give them the best possible answer. Your customer care team should also be capable of helping your customers solve common issues.
- Outsmart your competitors
The best way to stay ahead of the herd is to give your customers something that your competitors are not giving. This means they will have no reason to leave you for your competition.
There are many more things you can do to maximize customer lifetime value. The trick is to ensure that you keep learning and tailor all your strategies to your customers. Never ignore your customers in your decision making process.