9 Ways to Increase Your Customer Lifetime Value Using Research-Based Tactics

9 Ways to Increase Your Customer Lifetime Value Using Research-Based Tactics

Written by Emily Henry

You’ve started a business and are working hard to grow. 

There are 2 ways in which you can make this happen. Attract new customers or retain existing customers and increase their lifetime value. Option number 2 is proven to increase your business by creating a steady stream of income.

What is surprising is that companies spend more on option number 1! Keeping existing customers has been proven to be a cost-effective method in business growth.

Attract new customers or retain existing ones and increase their lifetime value and create a steady stream of income.

Answer 1: Make it personal

Research shows us that a personalized experience is more likely to create repeat orders and customs.  In fact, nearly 90% of customers said that they would use a company or brand which offers a personalized experience.  If you can set up your product page based on an individual requirement, they can find what they want more easily and will be more likely to repeat the process in the future.

Answer 2: Reward loyalty

The common practice you would think.  Free coffee after 5 purchases, a free download every month.  All these tactics reward loyalty and keep a customer coming back to you.  They have a reason, and they feel valued.  Research by Lab42 has shown that 73% of customers are more likely to make a purchase based on a loyalty scheme.

Answer 3: Reward the most valuable

A slightly different mindset to the previous suggestion regarding loyalty.  Here, your focus is on rewarding the customers who add the most value.  Use your data to find the customers who place the larger orders and acknowledge them, keeping them as a customer in the process! 

‘You don’t need to do anything over the top which will cost your business a lot of money.  A simple email or a small discount on their next order will suffice,’ advises Louise Jackson, a writer at Assignment Service and Essay Services.

Answer 4: I’ll be there for you!

Yes, part of a 90s pop classic but a valid method of keeping increasing lifetime value.  Make sure everyone involved with the business can deal with complaints and queries.  Indeed, research has found that someone who reads a negative review will spend over 10% less as a direct result of it.

Answer 5: Be different from the rest

Find something that you can do that all other businesses don’t.  This doesn’t need to be lots of deals and special offers – these are easily replicated.  Focus on the customer service quality or the options available on your site.  You could email individuals about offers they might be interested in or tag them into a social media post that you know they will be interested in.

Answer 6:  Customer service

How easy are you to contact?  Making it nearly impossible to contact you will drive customers away.  Having a range of options available appeals to all customers.  Research has found that over 50% of customers would switch to a company with a variety of ways to make contact.  Phone numbers, email addresses, live chat, 24/7 online support, and social media links are all ways that customer service can be top drawer.

Attract new customers or retain existing ones and increase their lifetime value and create a steady stream of income.
Photo by Clay Banks on Unsplash

Answer 7: Listen!

It is all well and good to receive feedback and collect reviews, but it is pointless unless something happens because of it.  Proving that your customers are listened to encourages them to return to you again and again.  This might be as simple as having longer opening hours for customer service phone lines.

Answer 8: Relationships

Make the customer feel wanted and listened to every time you communicate with them.  Poor customer relationships can account for a 16% decrease in retention rates.

‘If you can tap into their emotions and feelings then a positive relationship is much more easily created and maintained,’ said Finlay Alan, a blogger at Ukservicesreviews and UKWritings.

Answer 9: Focus on quality

There is no replacement for this.  If you have the best product then people will buy it.  What your company needs to do is have the best product and then improve it to create a new product.  Companies like Apple are a great example of this, and people go back again and again to buy their products.

Attract new customers or retain existing ones and increase their lifetime value and create a steady stream of income.

Emily Henry is a writer and abseiling enthusiast.  Her self-help articles for Lia Help and Professional Assignment Writers and both engaging and informative.

She also writes about Customer Lifetime Value for Academized Review, and others, which have become her main focus over the last 18 months.

Read more:

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What is Brand Clarity and Why Is It Important Right Now?

How to Improve Customer Experience on Your Website

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