Most companies focus more on gaining new customers than retaining their current audience, despite studies that prove it costs 7 times more to acquire a new customer. You’ll make more money by keeping your existing customers happy and content. You can do this by increasing your customer lifetime value.
What is Customer Lifetime Value (CLV)?
Customer lifetime value (CLV) is a prediction of the total net profit your business will make based on future relationships you have with customers. It’s a metric that helps you decide how much to spend to retain customers. Use this forecasting method to estimate a customer’s projected revenue over the lifetime of their relationship with your business. Simply put, how much money will you make by keeping current customers?
By knowing and understanding your CLV, you can make important decisions about product development and marketing. CLV metrics influence how to incorporate customer feedback into product development. For example, deciding whether it is profitable to make significant changes to a product to meet the demands of a small segment of your customer base.
Additionally, CLV metrics help determine if acquiring new customers provides a sufficient return on investment (ROI). Obviously, the marketing strategy is ineffective if the marketing of gaining a customer exceeds the CLV. Knowing your CLV and how to increase it saves you money in both the long-term and the short-term.
Increasing Customer Lifetime Value
To increase your customer lifetime value it is as simple as providing your clientele with excellent customer service. But other methods are effective as well.
Using Social Media to Your Advantage
Interacting with your audience on social media gives you a great advantage in CLV. To increase the retention benefits even more, showcase your customers on your Twitter or Facebook feed.
Putting a customer (or their business) in the spotlight makes not only them feel special, but it shows all other current customers how much you care about each and every one of them. You’ll gain more interaction and reciprocity, leading to organic audience growth, and keeping current clients pleased.
Website Content and Design
Customers are inundated with the same content every day. It takes effort to stand apart from other businesses and provide content that’s exciting and engaging. It’s what keeps current clients happy, increasing your CLV.
NuMedia Marketing offers search engine optimization (SEO) that drives clients to your services again and again. SEO is what keeps you on top of the results page when someone searches for your services. Extending your CLV depends on your website content as well. Your website must be functional and user-friendly while also giving current customers reasons to return every day.
Promotional Products
Traditional promotional products are not a thing of the past, even though digital marketing has a major appeal. From apparel to thank you cards, branded materials are tangible, durable items that keep customers happy, increasing your CLV.
Giving something to current customers that your competitors aren’t makes your business look caring and generous. Providing this kind of value makes your brand memorable and appreciated for years to come.
NuMedia Marketing is a skilled team of experts ready to provide you all kinds of ways to increase your customer lifetime value. Whether you need a marketing strategy or a new website, we’ve got your covered. Call us today at 317-563-7235.
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