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Do you know exactly how much a customer is worth to your business? You should.
Customer lifetime value is simple to calculate, as well. It looks like this:
Simply put, it’s the average sale value multiplied by how much purchases a customer makes over a specific period of time.
You could be multiplying your revenue without adding any new customers. How? By increasing customer lifetime value.
Keep reading if you want to learn how to do so.
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1. Tailored customer experiences
Do you ever get ads that don’t relate to any of your interests? (I’m looking at you, YouTube.) It’s more common than you think. Some marketers take a spray-and-pray approach, hoping they’ll hit targets and convert. No good.
Nowadays it’s all about personalization. A.K.A segmenting customers and providing each group with a unique experience based on their behavior, demographics, and other traits.
It’s easier said than done, though. 5% of marketers believe they have mastered their data to do so. If that hits home, consider investing in a marketing security solution like Morphio that analyzes the most profitable customer profiles for you.
2. Get found anywhere and everywhere
More touchpoints = opportunities to sell.
This is why omnichannel marketing is so powerful. It’s an effective method for increasing customer average lifetime value because they see your brand more often, building trust.
Consider for a moment that 98% of Americans switch between devices during the day; desktop to mobile or tablet and vice versa. That’s not to mention swapping between social networks and websites, either.
How can you take advantage of this to increase CLV? Firstly, by analyzing what platforms your company uses and doesn’t use. The main channels you need to be using in 2020 include:
- Blogging (Medium, LinkedIn, or a personal website.)
- Videos (Primarily YouTube or self-hosted.)
- Podcast (Spotify, Soundcloud, iTunes, and Google Play.)
- Email marketing
- Social media
- Conferences
- PPC (Google Ads, Facebook Ads, etc.)
Your customers will see you everywhere. Online, offline, and everywhere in between. This will garner trust, loyalty, and authority. All of which create the perfect recipe for sales generation.
3. Up-selling and cross-selling
You have nice products in your cart, would you like more? That’s a summary of up-selling and cross-selling. It’s insanely effective, too.
Up-selling is offering higher-end products while cross-selling is promoting complimentary items.
This is often implemented during the checkout process when a customer has a credit card in their hand. It makes much more tempting to buy other products.
Major solutions and content management systems like Shopify and WordPress make this a breeze, too. Just install an up-sell app or plugin, choose what products to promote, and enjoy the extra revenue!
Final thoughts on maximizing CLV
Sure, you could invest budget in acquiring new customers, but why not nurture and maximize your current customer base?
Maximizing customer lifetime value can be achieved through several techniques: segmenting and personalizing their experiences, increasing how many marketing channels you use, and up-selling.
If you would like many of these processes automated to make boosting CLV easier, try Morphio for free. Our marketing security software finds optimizations, profitable segments, and more so you don’t have to manually.
