Leaders across industries continue to face the most competitive and unprecedented market conditions in decades. Close scrutiny of these market conditions and growth patterns suggest that business growth is the resultant of two key factors - new customer acquisition and existing client retention with a focus on increasing Customer Lifetime Value.
The probability of selling a product or service to a new customer is about 5 to 20 percent. However, selling the same item to an existing customer has a probability of roughly 60 to 70 percent. (Source: Marketing Metrics). This clearly suggests that client retention, with a focus on increasing CLV, is a far more effective strategy for businesses to produce a steady and predictable increase in revenue.
Now the most important question arises as to how to improve lifetime value. Following proven tactics could go a long way in increasing CLV.
Mastering Hyper-personalization Techniques
Customer churn is a major issue plaguing businesses which in turn heavily impacts CLV. Dynamic brand marketers have found a solution to cap the churn. They are segmenting and targeting a wide array of customer data for personalized recommendations, offers, and messages to increase conversion, sales, and loyalty. Personalization has gone beyond name & offers in the messages; now it is about content, interactions, needs, and behaviors of individuals rather than only segments. Businesses should channelize their time and resources mastering modern personalization techniques. It is highly advisable to send hyper-personalized, automated, and interactive content to customers by embracing disruptive marketing tools like moLotus ultimately enhancing lifetime value.
Creating Customer Delight
Marketing wisdom says that creating customer delight is a must for improving CLV for all businesses. Research suggests that customers respond positively to surprises like thank notes, birthday greetings, gift coupons, and vouchers, etc. Therefore, it would be wise for marketers to focus on greeting their customers individually on special occasions and events. For instance, customized birthday greetings will delight them, leading to increased lifetime value. For ages, businesses have been depending on traditional channels like SMS or printed mailers for this purpose with limited or absolutely no results. Digital transformation has lead to the growth of powerful advertising platforms like moLotus for sending automated, personalized, and rich multimedia messages dedicated to special occasions. Interestingly, moLotus offers unique rich-media formats - Videos, Audio, Greeting Cards, Pictures, Vouchers, and more.
Offering High-End Customer Support & Collecting Feedback
It is essential to invest in quality support to help businesses enhance customer engagement and retention rates. Poor customer support leads to client defection towards competitors which brands can’t afford. Top-notch support boosts customer retention and increases lifetime value. Choosing the right process automation platform could serve reliability and scalability among other things. Ensure that your team responds to customer requests as fast as possible. Live chat platforms like ZenDesk Chat, LiveChat, and acquire.io are convenient for web-browsing customers. Businesses could also rely on new-age marketing platforms like moLotus to engage their customers. It would be prudent to collect real-time customer ratings and feedback using ‘Rate-it’ capability of moLotus. This capability exhibits robust success rates, enabling the brands to analyze and improve upon.
Rewarding Loyalty
High lifetime value comes from loyal customers who should be rewarded for choosing the particular brand over and over again. This makes it essential to design and manage innovative loyalty campaigns. The loyalty campaigns should be directed towards enrolling customers, making them earn and redeem rewards points based on spending behavior. Using modern platforms like moLotus, brands can schedule automated loyalty campaigns rewarding a specific group or segment of customers. This improves their experience with the brand, builds rapport, offers a tangible reason to stay connected, and finally increases lifetime value.
Conclusion
Undoubtedly, you are the best judge of what suits your brand. Right marketing-mix with the right amount of investments on platforms like moLotus will significantly reduce churn rates and ensure satisfied customers with higher lifetime value. Your motto should be higher retention and high margin revenue growth!