How to increase your customer lifetime value
Nurturing existing customer relationships is key! Even so, there are many businesses that focus the majority of their budget on new customer acquisition. We’ll show you how to retain like a boss!
Over their lifetime, customers will spend a certain amount on a company’s goods or services, this is customer lifetime value. Increasing their value, meaning keeping your customers happy and coming back for more, is an essential strategy for any business. In fact, repeat customers generally spend 67% more than new customers.
Even so, there are tons of businesses who ignore this and focus the majority of their budget on new customer acquisition. Of course, it’s important to win new business so that your company can grow, but it’s also imperative that you nurture your existing customers.
For instance, many companies stop tracking their customers once they’ve made a few purchases. However, tracking both one-time and loyal customers can entice them to continue to buy from you in the future (or recommend you to their friends)!
Another great tips is to always make sure your customer service is on point. Going above and beyond can keep you top of mind for your customers and get you noticed in a PR sense as well. For instance, Virgin Atlantic one time asked a passenger to help them overhaul their airline’s menu after she complained about the food.
It can also be fun to use user-generated content to build bonds with your existing customers. You can share their photos on social, or allow them to share opinions and tips in an online community you create just for them.
There are so many ways to ensure your customers feel valued and appreciated so that they will want to come back and spend more money over their “lifetime” relationship with you. So get out, and start using these tips ASAP!
Photo by Blake Wisz