5 Strategies To Increase Customer Lifetime Value
If you are serious about building a wildly successful business, the kind of business that will help you secure the financial future that you’ve always dreamed of, you need to be sure that you are paying attention to the most important metrics – and one of the most important metrics of all has to be Customer Lifetime Value (or LTV).
You see, a lot of other smart and savvy business owners think of a customer as a one time kind of event, never really realizing that it’s a lot more expensive to convert a complete and total stranger into a paying customer than to get a past customer to purchase from you again – and that if you focus on marketing and advertising to your past customers you’re able to improve the profitability of your business dramatically.
Here are five strategies to really help you hit the ground running!
Find out what your average LTV is in the first place
The first thing you have to do is pay close attention to your books and understand exactly how much your customers purchase on a regular basis, how often they purchase from your business, and how long they remain your customer before they drop off.
This will give you a better idea of what your baseline LTV is and once you know that you will be able to build up from that foundation.
Figure out exactly what your customers want the most of
The odds are pretty good that 80% of your sales come from about 20% of your products and services, and you want to figure out exactly what those “cash cow” products and services are so you can work to aggressively market and advertise them to your lifetime customers. This alone will boost profitability right through the roof by offering people what they want the most of in the first place!
Keep in constant contact with your customers
It’s not enough to only market and advertise to your customers when you want them to purchase, especially in as competitive a business environment as we live in today. Your competitors are ALWAYS going to be looking for ways to steal your lunch and as many customers of yours as possible – which is why you want to constantly communicate to your customers as frequently as you’re able to. Market to them maybe once every four or five messages, but make sure there’s plenty of relationship building messages in there as well.
Test absolutely EVERYTHING
You’re going to want to take a page out of the copywriters and direct marketers handbook by testing as many elements of your marketing, your advertising, your pricing, your offers, your service, and pretty much anything else you can think of as humanly possible to see which changes boost your profits and your LTV in which ones cause a negative dip.
Once you find something that works that will become your new “control” in your goal from there will be to find something that beats your control and becomes your new one. Rinse and repeat as much as you’re able to in order to generate the kinds of profits you’ve been dreaming about!
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Singapore is better positioned than any other Asian country to cash in on an increasingly digital world and Singapore Has Established a Lucrative Innovation Fund for New Enterprises and all topics related to Entrepreneurship, Tech and Business Setup in Singapore.