6 Ways to Increase Your Customer Lifetime Value

It’s more expensive to acquire a new customer than to keep an existing one.

But still...

44% of companies are focused on customer acquisition rather than retention

And just...

16% of companies are more focused on retention

So...

If you want to maximize profitability, the right strategy would be to focus on retaining customers, not gaining.

How do you retain customers and increase your Customer Lifetime Value?

1.Annual Billing CycleEncourage customers to switch to annual billing cycle

Increase in Cash FlowThe money that customers pre-paid can be reinvested into your company and product

Reduces Customer ChurnYou have more time to demonstrate your customers the value of the product.

Predictable and Steady RevenueYou can forecast and do long-term planning

Cheaper for CustomersMost companies offer a discount

Advantages of Annual Billing Cycle

2.Product Life CycleTake advantage of your product’s natural life cycle

Take Advantage of Your Product’s Life Cycle

◎ A lot of the products we buy on a day-to-day basis are things we will buy again in a few weeks or months

◎ Encourage your customers to make repeat purchases through remarketing

◎ Send out weekly, monthly replenishment emails that promote the same product customer purchased

◎ There’s a higher chance that customer will purchase this product from you

3.Send Value-Packed EmailsSend value-packed emails that keep customers engaged

The best type of emails to send to your customers are messages that remind them how you’ve helped them

If you provide accountancy services:Send an email email telling clients how much you’ve helped them save that month.

If you provide personal training services:Send an email to clients with their total weight loss or strength training progress for the month.

If you sell an environmentally friendly product:Email your customers to tell them how much less carbon dioxide they’ve produced than by using a competing product.

4.Customer ServiceOffer personal customer service via phone and email

Make your email support as personal as possible to give customers the best possible experience.

89% customers began doing business with a competitor following a poor customer experience

Give customers a human voice as soon as they reach you, as dialpad menus are the most common phone-related support complaint.

44% prefer email 39% prefer phone

5.Upsell & Cross-sell

Quick Tips for Upselling and Cross-selling

◎ Offer bundle products

◎ Use a sidebar widget with popular choices

◎ Keep those recommendations limited

◎ Add complementary products at checkout

◎ Free shipping with minimum spend

6.Customer SegmentationUse Detailed Behavioural Customer Segmentation

Use Net Promoter Score to segment your customers

● Gather reviews, feedback, and testimonials

● Identify promoters who love your company. Use them as a resource to spread the word about your business

● Identify detractors, your dissatisfied customers, and deliver follow-up designed to overcome problems to prevent negative word of mouth while transforming them into more loyal customers

● Delight your passives with excellent customer service to convert them into promoters

● Determine what your company is doing right and what it can change to improve its customer loyalty

What are the benefits of segmenting your audience?

NPSFocusing on increasing your NPS is a great way to keep your churn rate

low and CLV high.

The most successful small businesses have

60-70% of their customers coming back

on a monthly basis

Do you want to increase your CLV?

Retently NPS helps you retain your customers and keep them coming

back.

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