Today Market is crowded is lots of brands. and due to a high level of competition new brands are coming to market every day.
It seems that its good for people if new brands their in market-consumers will get more options to buy.
But What about Entrepreneurs?
A number of competitors increased their profits are going to decreases dramatically-As per a recent survey by kissmetrics the CAC cost of acquisition of customer is increasing day by day. average CAC is $35.
Imagine you spend $35 on customer and they aught only one product from you. After that, that does not guarantee that he/she will return to you or not!
How Will You React?
It’s painful right all your marketing & sales efforts will go waste.
So what is the ultimate solution to this?
What if you can engage in such a way that he/she will buy from you again & again.
Sounds Great !…:)
That’s when customer retention comes in picture-Its important but 60% of retailers have 20% of retention rate.well they can achieve more by increasing consumer’s lifetime value-(LTV).
As per Econsultancy report, 64% of organizations believe that customer experience is the tactic to boost your Consumer’s lifetime value (LTV)-Consumer will stick to your brand when you will delight them with value.
(LTV) Lifetime value is so much important it will provide you an approx idea of revenue that particular consumer will deliver to your company.
It also depends on lots of aspects from sales-marketing–customer delight–customer experience.
But Question Remains same.
How can we achieve it?
Well….A wait is Over….
Here are 3 fantastic Ways to increase customer’s Lifetime value.
1. Personalize Customer Experience :
Every Business has interaction with people-So companies who succeed to have emotional connections with making their customer’s buying experience personalize will have a bigger impact on the customer.
Remember ? When Someone Helps in a Shopping mall to find your size of a pair of shoes or your favorite color of a shirt.
Not only Shopping experience but communication with Customer can also be personalized – It also depends on your customer’s age group. i.e. If your customer is between age group 40-54 that person should get communication through SMS or Email.
If your customer is between age group 24-35 they should get a message from Social media. Facebook or Snapchat.
2. Celebrate Customer Loyalty :
Companies should celebrate loyalty of customers by not giving them special discounts but also give them special gifts or tickets to some concert or shows.
Most of the Companies introduced rewards points who bought with their loyalty card.-73 % of customer remember brands always while they are part of loyalty program.
Companies should recognize their loyal customers and Fans-Company should definitely offer more than discounts-some more valuable by which customer really felt the proud association with Brand.-It will increase Brand Affinity.
3. Train Your Team members as LTV Creators :
The best way to Boost your customer’s Life time Value is non another communicate with your team mates who are directly in touch with customers. i.e. your front warriers (Sales team- Customer Support).
Your Sales team is in directly in contact with your customer’s so they can understand better why,.where & how they make product experience or customer experience better.
Sometimes All things are going good but the Software which Organization is using for accepting payments are not user friendly.
Sometimes the delivery of product is not at right time or not as per expectation. each & every small observation or feedback will improve your customer experience and ultimate boost your Customer’s Life Time Value.
Wrapping Up :
Increasing Customer’s Lifetime value is ongoing process-it’s not applying big strategies but observing and applying small things which customer is facing problems with-and eliminating them to provide smooth customer buying experience. Ultimately it will delight Customers and it will result into revenue from a customer.