Customers are the ones that give life to companies, without them businesses would not be able to grow and succeed in the market. Therefore, keeping customers happy and ensuring they come back after making a purchase should be each company’s top priority. Still, many businesses miss the importance of customer retention.
If you want to grow your business you have two options, you either acquire new customers or you focus on retaining existing clients and growing their lifetime value. The customer lifetime value (CLTV) refers to the value each customer brings to your company over time, so the longer you can retain a customer, the higher the revenue for your company. As each client becomes more valuable, it means your business can spend more to acquire new customers and retain the existing ones.
Calculating the customer lifetime value of your average customer is crucial, but the most important is the influence it can have on your marketing efforts and revenue. By focusing your marketing budget and marketing campaigns to maintain your customers, your business can reduce costs, increase profits, and overall aim for a healthy business.
Now that you understand why the CLTV is essential for your business growth, we want to share some marketing tips for increasing your customer lifetime value. Below are the five marketing tips that help you increase the CLV and your revenue.
1. Focus on your product or service quality
Think like a customer, what do you look for when you buy a product or service? The most common answer will be quality, and it happens to be one of the most important reasons why consumers decide to stick to a brand. So, if you carry on with giving and adding to your product quality, you will definitely keep your customer interested in your company and at the same time you will increase your customers’ lifetime value.
The power of quality in marketing applies to any product or service you are offering, no matter what industry you are working in. Therefore, we can assume that if you prioritize product or service quality, it will help you reduce churn. Besides, focusing on quality will help your existing customers become advocates and start to develop loyalty towards your brand.
2. Provide an outstanding customer service
Attracting clients to your business is the core factor to your success, but keeping them satisfied and solving their questions or problems is even more important. The more people you draw into your business, the higher the probability of increasing your revenue. The real challenge relies on how to get your current buyers to make more purchases.
Customer service is one of the main drivers to encourage first-time users to make repeated purchases. For that reason, customer service should be part of your marketing strategy, and it is a marketing tool that you ought to have in mind because it helps you build lasting relationships through emotional connections. So remember, the better your customer support services, the higher your customer lifetime value will be.
3. Refine your onboarding process
Onboarding is crucial to customer success, since it’s here that your client really engages with your product or service and is also where you can have the most positive impact. Moreover, it’s extremely important for your business to build a strong strategic onboarding process to encourage current and new users coming back for more, and consequently increasing their lifetime value to your company.
Depending on the industry and customer needs the process can be different. You could consider personalizing the onboarding process by adapting it to the buyer persona. However, there are a few steps that most companies use to capture their audience’s attention. First, you should make the onboarding process as easy and fast as possible. You can achieve this by simplifying the process with interactive videos, tutorials, guides and any other content that might help customers in achieving their objectives.
Second, try to communicate the value you are offering right from the start. Always test onboarding approaches and monitor the customer based on their behavior. Whatever option you choose, make sure it is easy to understand and encourage engagement.
4. Identify common issues and be proactive
The idea is to look into customer’s feedback to analyze and identify the most common or recurring issues they have reported. For example, if you do NPS surveys they will make this task very simple, because it allows you to detect recurrent pain points for Detractors, who are customers who are not happy with you brand or are not willing to promote your brand, and Passives, customers who like your brand but not enough to be Promoters.
Once you have spotted the most relevant complaints, prioritize them depending on the frequency of occurrence. Another idea is to list the issues that overlap with both Passives and Detractors. After identifying and prioritizing the complaints, the responsible departments should be informed so they can work to provide solutions for the clients.
5. Reward your customers
Rewarding your most loyal customers will increase their satisfaction and help you strengthen the relationship over time. In order to identify your most loyal customers you will need to calculate the lifetime value of each customer. When you have a list of loyal customers it is a perfect time to give them special offers, discounts or presents that fit their needs, so you keep them happy.
But, how do you make loyal customers happy? One idea could be offering them an upgrade. Upgrading their services reflect that you care about your customers and value your relationship with them. For example, if you provide a subscription service, you can upgrade your loyal customers to the premium service. This may not add direct value to your company, but you will encourage customers to become advocates of your brand, and motivate them to use word of mouth to tell other potential customers about your business. In this way, you are increasing your CLTV and attracting new customers that could potentially be converted into paying customers.
Being aware of the importance of your customer lifetime value and how to increase it is essential to your business growth. We hope these tips to increase your CLTV help you and your team clore more deals. Do you have any other techniques on how to close more B2B deals? Please share them with us.
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