Customer lifetime value marketing (CLV marketing) is the value that each customer create for your business in their lifetime (their entire relationship with your brand). Who among your customers are the most valuable ones? What marketing strategies should you implement so they’ll keep coming back and become loyal to your brand?
All your marketing campaigns and strategies should concentrate on keeping your customers happy. Your relationship with them needs constant nurturing. And there’s no better way to do that than to focus on your customer lifetime value marketing.
Customer Lifetime Value Marketing and Retention
You turned nights into mornings to make your brand known and find ways to get more sales. You followed the best practices of digital marketing and tried every technique shared by your favorite influencer. But none of these would yield the results you truly wanted if you spread yourself too thin and spend a huge amount of money on acquiring new customers.
The truth is, you don’t need thousands of new customers that would buy once or twice and then forget about you. What you need is to retain your repeat customers who could create value for your business over the long haul. Focusing your efforts on these customers is the core of customer lifetime value marketing.
The more you take care of your repeat customers, the more they’ll realize how much they need you. You provide them the best products or services to make sure they keep patronizing your brand. They come back multiple times because you made the efforts to retain them.
It is said that customer retention is the new marketing. The acquisition is important, but if you loosen your grip once a lead has turned into a customer, you lose the bigger opportunity and that is retention. Existing repeat buyers are precious to your business because they bring in more profit with less marketing spend.
Don’t stop pushing your marketing strategies once a customer makes a purchase. That initial purchase is critical for you because what you will do after that will either make or break your chance to retain that customer. You will then be able to determine the success of your customer lifetime value marketing if you’re able to transform should-have-been one-time buyers into repeat and loyal customers.
How to Increase CLV and Optimize Your Marketing Campaigns
Once a regular customer feels that you value them, they won’t go anywhere. If they continue to make business with you and become loyal to your brand, your CLV increases. And when your CLV increases, your ROI will be golden.
That’s why focusing on long-term profitability is better for your business rather than putting the majority of your marketing efforts in nailing short-term conversion metrics. Analyzing your CLV calls for a lot of work to do but in the long run, the return is greater.
Although customer lifetime value analysis may be too complex to understand, knowing how to calculate CLV with a small amount of data would help you out a lot.
So what can you do to boost the lifetime value of your customers? Here are a few CLV marketing tips to help you nurture your relationship with your high-value clients and make them come back again and again.
Have a More Targeted Messaging
The way you communicate with your customers on their initial purchase changes when they become your loyal customers. You already brewed a certain kind of affinity and more importantly, you’ve established trust. In the course of your seller-buyer relationship, the messaging becomes more natural and personal like how long-time friends communicate.
Are you optimizing your email marketing? It’s important to segment your audience so everyone will receive the right message intended for them. Targeted messaging is crucial in customer lifetime value marketing. You wouldn’t want to send welcome discount coupons to existing customers or annoying offers to those who have already bought the promoted items many times before.
Remind your valuable customers of what they loved about your brand. Make sure you keep them posted of new products related to what they purchased before or relevant to their current needs. And don’t forget important days, like their birthday, when you can give them special treats. Make sure you’re using live chat software to bridge gaps between your team and the customers to empower all involved.
Be as “Human” in Social Media as You Can
Social media marketing is a powerful tool for brands and consumers alike. One of its benefits that brands should maximize is it being an efficient customer service channel. And having a good customer service is essential for your CLV marketing.
Happy customers would send you a chat message to give their feedback on their recent purchase with smiling and heart emojis everywhere. Be as genuine as possible when replying to such messages. They would be glad to know you also appreciate them back.
While others opt to drop you a line via private message, others choose to share their experiences with your brand by leaving comments on your posts. Be social. Response to every comment when you can. It’s a great chance to convince them to try your other products by letting them know you have a lot to offer that would give the same positive experience.
Consumers love seeing how brands interact with them online. The way they communicate on social media is a reflection of their values as a company in general. This is one of the easiest yet most effective customer lifetime value marketing techniques to stick to.
Provide Constant Solution
You are your high-value customers’ go-to brand. Well this may depend on the products you’re selling and if you’re able to grow your product line along the way. If you sell travel luggage, you know that it’s not something people would buy every year. Selling travel essentials and accessories would solve the problem.
Show what else you can offer them. Put your brand in front of your existing customers and let them figure out by themselves that your other products could cater to their other needs. This will only happen if you are constantly nurturing their loyalty through your customer lifetime value marketing. It could be by giving loyalty rewards such as discounts or freebies.
When customers are happy and satisfied, you don’t need to work extra hard to convince them to buy again. They will because they had a wonderful customer experience with their first purchase. Optimize your customer lifetime value marketing by showing them post-purchase that there’s more to love about your brand.
Customer lifetime value analysis requires serious effort as it usually involves a huge amount of data. There are companies that offer a solution to this, but it would still be worth a try to learn the ropes and get involved.
Lastly, to increase your CLV, don’t abandon your customers. Be with them in every step of their journey with your brand. Make every buying experience remarkable. Do this until your customers become an advocate for your own business.
Ryan is a Digital Marketing Specialist by profession and a content strategist at HarrisonMann. Being in the digital marketing field for 7 years now, he enjoys keeping up to date with the latest in all things digital and search. As a silent type, Ryan expresses plenty of his thoughts through writing.
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