Five Recognized Techniques to Increase Customer Lifetime Value!
The expansion of any business majorly depends on the relationship with the customers. If you are dealing in the eCommerce industry, you should focus on building an amicable relationship with your existing customers and try to attract new customers. Focusing more on retaining your existing customers and increasing their lifetime value is essential to the eCommerce business. According to recent research, it has been found that increasing customer lifetime value(CLV) is a far more profitable and effective strategy for producing a hefty revenue stream.
Believe it or not, more than 45% of online sellers spend more time and investment acquiring more customers. It will be best if you keep in mind that the greater the effort to keep a customer with you, the greater it will add value to your eCommerce business. Along with fulfilling an order on time, managing your inventories, and reconciling your payments, you should also take care of the CLV. However, if you are not aware of this crucial aspect, do not worry and read out this blog. We have mentioned several techniques that can help you in increasing your customer’s lifetime value.
What is a Customer Lifetime Value(CLV)?
A customer lifetime value (CLV) is the total amount of money a customer typically pays to buy your online products during their lifetime. As a seller, you must figure out how much a customer has invested in buying your products because it can help you to make essential decisions regarding your investment in attaining potential customers and retaining the existing customers. You can calculate CLV by multiplying the average purchase value of your customers, their average purchase frequency, and average customer lifetime. Receiving a high customer lifetime value means each customer can add more value to your business. So, in this way, each of your customers becomes more valuable to you, and you can definitely afford to spend your money on acquiring new customers and retaining the existing customers.
Five Ways to Increase Your Customer Lifetime Value(CLV)
Get in Touch with Your Customers
Your customers may not remember you after purchase, but it will be unfair to your business if you do not remember them. Getting in touch with your customer base is crucial to keeping your sales high. Now the question is how you will get in touch with them? Well, you can take the help of email marketing and send them creative emails on every occasion; you can remember their date of birth and offer them exciting offers on their birthdays or anniversaries. This attitude can make your customers happy and increase their retention. Ultimately, this technique can help increase your customer’s lifetime value. Regular email communication may irritate your customer base, so it is better to send them emails on special occasions, a lunch of any new product, or before any upcoming sale. This process can help you intensify the relationship between you and your customers and drive more sales.
Offer Personalized Upselling
In the eCommerce industry, it can be easier to sell a product to a customer who already knows you or buy any specific product from you. But it cannot be easy to pitch a new customer and gain their trust to sell your products to them. If you already have a robust customer base, you may not be required to drive new customers but to focus on retaining existing customers through upselling and cross-selling. Upselling is when you try to convince a customer to buy an upgraded product. For example, if a customer is going to buy an Rs100 product and you convince them to buy an upgraded product for just Rs 150 is upselling. It automatically increases the value of customers’ purchases.
On the other hand, cross-selling inspires a customer to buy a related product along with specific products. It can be a great way to make your customers go through your entire product range and discover more products. Along with the CLV, it can increase your average order value as well.
Provide Phenomenal Customer Service
It is the fundamental aspect of an eCommerce business that a happy and satisfied customer can come and repurchase your product. But it is not that easy; you need to be more precise towards serving your customers and providing them satisfactory service. A survey says more than 85% percent of customers come back to you if they had a satisfactory shopping experience in the past. To provide a robust shopping experience to your customers, you have to take care of the quality, inventory, shipping, returns, and payments.
However, if you are experiencing challenges in handling all these aspects, you can take the help of any powerful eCommerce management software such as eVanik OWS. It can help you manage your inventory so that you may escape overstock and out-of-stock situations. Apart from that, this software also provides you with the ultimate payment, shipping, and return reconciliation facility. All these aspects can help you provide a pleasant shopping experience to your customers, and further, it increases the customer lifetime value.
Offer Customer Loyalty Programme
Implementing a customer loyalty program is the most effective and one of the popular ways to retain your existing customers and convince them to buy your products frequently from various marketplaces. Loyalty programs are effective in terms of increasing your customer’s lifetime value. A loyalty program works when you reward your most loyal customers with a discount coupon, exclusive offers, free shipping, etc. You can also offer them some reward points on their next purchase. It can keep them returning and ultimately add value to your eCommerce business. Such a program can encourage your customers to talk about you and recommend your products to others as well.
Always Reply to the Customer’s Feedback
In order to increase the customer lifetime value, you must give importance to each and every customer. You may make them feel important by replying to their feedback or reviews. Most sellers don’t think that not replying to your customers’ feedback can make them think that their words don’t matter to you. However, if you reply to their feedback and reviews, they may realize they matter to you. It can increase the customer engagement rate and, ultimately, customer lifetime value also.
Conclusion
The customer and seller relationship work on a give-and-take approach. If you value your customers, you may successfully achieve your revenue goal. In eCommerce or any other industry, how you treat your customers is all that matters. That is why, you should take care of their demands and always offer them something exciting so that they keep coming back and eventually increase the customer’s lifetime value. Providing top-notch service and a unique personalized experience can help you effectively retain your existing customers. In this regard, an order management software such as eVanik OWS can also help you with this by providing beneficial services such as account management, inventory management and shipping, returns, and payment reconciliation.