"Keep your customers always on the frontline," this is a key philosophy to running a successful business. Customers are the lifeline for businesses of all sizes. A business cannot survive without the existence of a single customer. Customers are important for every business type to reap maximum potential revenue.
Are your customers happy with your business? Does your business provide any value to your customers? Do you regularly meet your customers' ever-growing needs and demands? What are the strategies you implement in order to maximize your customer lifetime value (CLV)?
What is Customer Life Time Value (CLV)?
Customer Lifetime Value (CLV) is a calculation in terms of the monetary value and determining how much a business can generate profits from its customers in between their first purchase to the last purchase.
Why are CLV Metrics are Important to Your Business?
Customer lifetime value is the most important metric for businesses of various sizes to determine the company’s long-term success, and predict the future business growth, revenue, and expansion. The CLV value is also one of the most significant factors to encourage repeat purchases of your company's products and services, reduce the cost, and boost customer satisfaction levels.
Strategies to Maximize the Customer Lifetime Value (CLV)
#1 Listen Carefully to Your Customers' Feedback
Did you know that in any relationship, if you want to make someone feel special, it is highly imperative to listen to them carefully while they are speaking? Moreover, developing the active listening skills can help your business to learn what your customers are speaking about you, and get a valuable feedback on your recently launched products and/or services in the market. Through active listening, you can even understand your customers' actual wants, preferences, tastes, interests, demands, and so on. You can record all customer activities on a centralized CRM database and later use the integrated marketing automation software to segment your customers into the different audience groups. This enables the businesses to deliver the targeted, personalized and interested marketing content.
#2 Provide Value to Your Existing Customers
It is always cost-effective to retain existing customers rather than to acquire new ones. Try to make your old customers feel valued. Greet them when they visit your store, carefully listen to them what they are saying about your business and the quality of your company’s products and services. Use the CRM software to analyze your existing customers' tastes, interests, preferences, personal information, age, demographics, purchase records etc. By using this information, you can send the personalized thank you messages and festive greetings to your customers, and offer them exclusive discounts on their special occasions and birthdays.
#3 Implement Cross-Sell and Up-Sell Marketing Techniques
When you add the cross-selling and up-selling techniques to your marketing activities, it can take your business to the next level and enhance the potential of the Customer Lifetime Value (CLV). For example, if any one of your customer has purchased a smart phone from your mobile store, you can offer them the various mobile accessories for a discounted price. This is just one perfect example of implementing the up-selling marketing strategy.
Whereas, in the cross-selling, you can setup a banner, probably in the festive season, with an offer like this: For every smart mobile phone purchase, you get a free mobile case. This way you can boost your sales as well as increase your business revenue.
#4 Offer Excellent and Personalized Customer Service
Providing excellent and personalized customer service is also one of the key factors to determine your customer lifetime value (CLV). Does your business provide excellent customer service? Are your customers happy and satisfied with your customer service?
In order to provide great customer service, you must train your employees on how to politely speak and greet your customers'. Additionally you can also use the CRM software to record all of your customers' past interactions with your company and use this information while you are interacting with them. Greet them by their name, this can impress your customers' and motivate them to stay longer. Besides, you can even use the CRM software to record the customer cases and resolve all of your customers' issues, complaints, and concerns as fast as possible. This can definitely improve the overall customer lifetime value (CLV).
I hope all the above strategies and techniques can help your business grow further and at the same time, enhances the customer life time value. In addition to this, use CRM solution to identify your loyal customers and offer them special loyalty programs, rewards, and awards. What are you waiting for? If your business wants to maximize the potential of your customer lifetime value (CLV), then you must purchase the latest CRM software and implement all the above techniques in your business.
Emma James is a freelance content writer at SutiCRM, who frequently blogs on Business, Marketing, Sales, ERP and SaaS trends.