There are basically two ways of growing your business. The first one is to attract new customers and the second one is to work hard to retain the existing customers by increasing what is known as customer lifetime value. According to AppsFlyer, “Lifetime Value, or LTV, is an estimate of the average revenue a customer will generate over the time that they use a given product or service.”
Studies have shown that the second way is a more effective technique when it comes to improving revenues and growing a business. However, various surveys indicate that most companies spend a lot of money on getting new customers.
Increasing customer LTV is not as hard as many people tend to believe. It can be taking a simple action like switching your billing system from monthly to annually.
Below are 10 ways to increase your customer lifetime value:
- Improve the onboarding process
Onboarding is one process that should be taken very seriously when it comes to customer success and sustainable growth. This is because it is through onboarding that customers get a chance to interact with your products and give you a chance to make a lasting impression.
- Feature your customers in your audience in your content
If a customer shares your product on a social media platform, don’t let it just go that way. Reciprocate by putting them in the spotlight to make them know how much you appreciate them. Once they notice that, they will become your brand ambassadors without you knowing.
- Offer valuable content to your audience
There’s no doubt that email marketing is one of the best strategies to maintain customers. Nonetheless, few businesses understand how to fully take advantage of email marketing. Rather than creating value-packed content, they focus on automated drip campaigns that add no value to their customers.
- Provide omnichannel support
As a business owner, it is good to present in as many channels of communication as possible. People own more than one communication gadget and use different social media platforms. If you only rely on one channel, then you are likely to miss out on a section of your targeted audience.
- Offer high-end customer service
Quality customer service is critical for the growth and success of any business. If you offer average customer service, then your customers are likely to shift to other businesses even if your product is superior.
- Provide 24/7 support
Customers love businesses that are always available when they are in need. That’s why it is important to have a round-the-clock customer support system.
- Monitor social media activities
When a customer reaches out to you via a social media platform, be it a comment or question, they expect a quick response. Close monitoring of your social media pages will help offer responses as they come.
- Have a live chat support
Some customers are impatient and will get upset if you take a long to respond to questions about your products or services. But with a live chat support system, you can communicate with them anytime they want.
- Build relationships
It is good to foster good customer relationships if you want to grow your business.
- Maintain a knowledge base
A proper understanding of your products will boost customer confidence in your business.
In a nutshell, customer lifetime value is critical for the growth of your business. You need to use all means to improve customer LTV.