A company runs with its customers, and making customers happy is every company’s top priority. Without customers, you will be rather involved in just an expensive hobby where you will be just wasting your time and money. Many email marketing agency work hard to retain their customers and to achieve that providing top services is the main ingredient.
Customer retention is necessary, but why is that so? Well, the answer is Customer Lifetime Value (CLV) there are many strategies that you can follow to increase your Customer’s Lifetime Value(CLV).
There is simple math, happy customers will ultimately lead you to maximize profits. You can increase your profit by selling to existing customers or by making new customers. Invest in your customer retention because this is the only way that will give you fixed returns every time.
Speaking about how you can gain customers, advertising is the key but apart from that, word-of-mouth(WOM) is also very helpful because studies show that 92% of customers believe in WOM rather than some advertising. You can gain customers with email marketing agency as well because attractive and eye-catching emails are very beneficial. But first, you need to understand what CLV is, keep reading to find out.
What Is Customer Lifetime Value (CLV)?
A CLV is an amount that customers generate for your business till they are your customers. Below mentioned are the methods that you can use for the calculation of Customers Lifetime Value (CLV):
- Average purchase value- You get the figures by dividing your company’s total annual revenue by the total purchase from your customers.
- Average Purchase Frequency- Divide the annual total Customer purchase by the total number of unique customers.
- Average Customer Lifespan- You need to calculate budgeted purchases by your customers.
After ascertaining all the figures, multiply them with each other and you will get your Customer Lifetime Value (CLV).
Importance of Customer Lifetime Value
If you know your CLV then it will be easy for you to handle your business and customers. You will also be able to make some important business decisions based on your CLV calculation.
Lower CLV can be a trigger point where you have to be very cautious about your business. You can evaluate different options like targeting customers from various cultures, religions, etc. using strategies to make your customers stay for a longer period by issuing gift vouchers, promo codes, discount offers, etc.
How Your Customer Lifetime Value (CLV) be Improved?
1. Enhance Your Recruitment Process
Poor customer retention can be due to bad personnel recruitment in your company. If your employees are not willing to give a better experience to your customers, you won’t be able to retain them. Educate your employees regarding the value of customers in an organization, arrange programs, training, etc. to enhance the whole procedure. This will improve your CLV.
Also, make a few arrangements for your customers which will work as guidance. Sometimes customers find themselves stuck in placing orders or doing certain tasks therefore make different videos to solve the issue like tutorial content, how-to articles, etc.
2. Annual Billing Methods
You can opt annual Billing method where you can ask your customers to choose a monthly billing system. If you have customers that purchase from you on a routine basis then this method can be the best option for you. The chances of moving customers between companies will also be eliminated.
It is also psychologically proven that when you invest your time in someone or something, your mind wants to complete that task therefore opting for an annual Billing Method can be a way to retain your customers and improve your Customer Lifetime Value.
3. Fulcrum Your Email Marketing
Email marketing agency knows how emails can change your business entirely. Email marketing uses the purchase data of your customers and shows them products similar to their last purchases. Also, it reminds your customers about their abandoned shopping cart and shows products with attractive offers and prices.
You can use simple templates for emails and contact email marketing services to prepare email templates for your customers. Sending emails to customers will increase the chances of making purchases.
4. Good Customer Service
Businesses that provide exceptional services to their clients tend to retain more clients than businesses that do not provide services. Studies have shown that most customers switch brand or company who offers bad service. Therefore providing a quality service is very necessary to improve your CLV.
Also, nowadays customer wants their queries to be answered as fast as possible, no one wants to wait in a long call queue or to wait for another day to get the job done. Therefore having 24/7 helpline support is very necessary. You can hire a support team who will tackle all the client’s queries and address them.
Focus more on the after-sales services because most companies avoid this factor.
5. Offers and Discounts
Customers love great discount offers. In a survey, it has been found that companies that provided more offers to their customers received more orders as compared to companies that doesn’t.
If you have some unique and special customers who visit your site or your shop now and then, you can curate special discount offers or gift hampers for them, give them complimentary gifts with every order, or new Promotional code every time they make a new purchase.
Wrapping Up
Customers are called the kingpin of the market, without a good customer base you will not survive for long and your business will vanish entirely.
Use the above-mentioned method to evaluate your Customer’s Lifetime Value and enhance your brand value. Making clients completely satisfied should be the aim of every company. Hire a good email marketing agency to carry out all the email-related tasks and reduce your workload.
It is very necessary to provide a satisfactory service to your customers so that they feel comfortable and inspired to make more purchases from your company hence more profit for your company.