Best Strategies To Increase Your Customer Lifetime Value.
By Ayandola Ayanleke
Before we proceed, what is Customer Lifetime Value? Customer Lifetime Value (CLV) is the metric used to measure the value of a customer to your business over their lifetime. That is, the profit your company can make from one customer throughout that customer’s lifetime. Based on the definition of CLV, it is clear why companies seek to increase customer retention (the rate at which customers stay back after interacting with your products or services) so as to increase Customer Lifetime Value because the length of time that a customer spends with your company will determine the profit that the customer will bring to your company.
So, what I am saying is if you want to increase Customer Lifetime Value, you should concentrate on increasing customer retention. How do you make this happen?
Always Assume Customers Are Dissatisfied
According to Jeff Bezos, in a statement he gave to the US House Committee on the Judiciary,
“Customers are always beautifully, wonderfully dissatisfied, even when they report being happy and business is great. Even when they don’t yet know it, customers want something better.”
Customers may claim that they are satisfied with your products and services and they may be right. At least, if there is one thing we all know customers are good at, it is expressing their dissatisfaction. So, it is normal to feel excited and relaxed when customers are satisfied and voicing out their satisfaction. But if you want to increase customer retention, you should never be complacent when it comes to satisfying your customers; you and your team should always brainstorm on what to do to make customers even more satisfied.
Include Customers In Your Content
You have probably heard that you should engage your customers on social media. Apart from creating engaging contents, you should interact with them when they interact with your posts. Some customers go as far as tagging your business account or using your customised hashtags for posts they feel is related to your brand. Make those customers important by including such posts in your content or sharing their post.
Listen To Your Customers
Some customers will send you things or post their opinion on your blog or social media pages. Now, it is not every opinion that you should implement because, at the end of the day, you are on the inside and know whether something is feasible or not. However, that doesn’t mean you should not listen to customers at all because they know what other customers are saying and you could get great insight from them. In fact, you should acknowledge every opinion, look at the feasibility before discarding it if you have to. And when you take their advice or idea, credit them for it. This will be sure to increase customer trust and loyalty.
Be Easily Accessible To Customers
Many companies claim to be accessible to customers but the companies that are actually accessible to customers are few. It is either their physical address is not clear, they don’t include a phone number or don’t respond to their emails and calls. Be a company that takes customer relations seriously whereby when they reach out, they know someone will respond to them immediately.
Have An Edge Over Your Competitors
You are not the only business offering your services or selling that product. So what makes you different from others? Why should customers patronise you and stay with you and not others? These are questions you should ask yourself from time to time. This is not about giving them a discount or a good deal, it is about what it is added to your product and service that they cannot find anywhere else. In fact, providing great customer service might be what stands you out from others.
Provide Quality And Excellence
No matter what you do to get customers or to retain them if you are not offering them excellence, you won’t get them and you will lose the ones you have. There are even customers that stay with a brand solely because they can trust what they get from the company. Don’t compromise on providing excellence even if your price is slightly higher than others. Customers will pay for quality.
In conclusion, most companies are usually fixated on gaining customers when they should concentrate some effort on retaining the customers they already have to ultimately increase Customer Lifetime Value. And these key strategies will help you increase your customer retention.