Customer lifetime value (CLV), is the profit margin a company expects to earn over the entirety of their business relationship with the average customer.
But how can you make that ‘life-time’ as many years as possible?
- Make the onboarding process as easy possible
Do everything you can to start on the right foot. A poor new customer experience may be responsible for as much as 53% of your churn rate. Back everything up with plenty of support such as tutorials, live chat and online reference videos and educational pdf’s.
Ensure your sales and/or customer service teams liaise to monitor customer success during the onboarding. Then review periodically to determine what can be done to improve the process.
- Improve Customer Support
Customers have high expectations.
- Track support response times and set targets to keep improving
- Monitor customer issues regularly to resolve any issues
- Check what customers are saying about you on social media, that they aren’t bringing to your attention
- Offer 24/7 omni-channel support designed to suit customer preferences. In other words, be where your customers go—social media, live chat, mobile, self-service, even texting.
- Maintain a knowledge base of help, tutorials, video and supporting documentation.
- Offer ongoing training for your staff, especially customer response best practices.
- Importantly, ask your customer for feedback after each support case has been resolved. It can be as easy as a one question satisfaction survey.
- And, keep your employees happy, and they will make more effort to keep customers happy
- Build Deeper Relationships within Companies
These days, given the size and complexity of buying groups, investigate all potential opportunities across the customer – for cross-selling, upselling and upgrading products and services.
Introduce them to extra savings and increased value, by offering bundled products, temporary upgrades, free shipping to existing customers, and special trial pricing.
- Never Stop Testing Sales and Marketing
Keep running A/B split tests on your sales and marketing message. What gets most response and sales. And, are you attracting the right customers, those with the greatest potential Customer Lifetime Value?
- Implement a Loyalty Program
Use loyalty programs to reward customers with cumulative benefits for staying with you. Among the possibilities, you can offer special customer discounts to incentivize ongoing sales.
- Create an Awesome Customer Experience
Simply ask your customers and listen to what they say.
Invite them to participate in customer satisfaction surveys. Discuss their pain points. And don’t simply collect feedback; analyse it, and act on it. Building relationships should be an ongoing effort. And a satisfied customer makes cross-selling and up-selling easier.
Plus, the more you know, the more you can personalize the experience for your customers. 80% of customers say they are willing to pay more for a better, personalized experience.
- Keep the Value Coming
It’s one of the best ways to keep customers happier, longer.
So stay in touch through value-packed blog posts. Send occasional emails talking about best practices and customer successes. Do a quarterly digital newsletter. And from time to time, pick up the phone and call to share an insightful idea.
When you can educate your customers and boost their productivity, they get more out of your products and services – and the relationship and loyalty grows.
In summary, focus upon increasing CLV by making onboarding easy, improving customer support, building relationships, testing your sales and marketing techniques, implementing loyalty programs, and providing excellent customer experiences and value.