In today’s competitive market, every organization tries to do a lot more than a bit to prosper in the business world. Every company has dissimilar needs and surpassing through tough competition is way too essential for them.
Whether the company’s name in the market is average, moderate, or highly famed, with the help of a few most recognized business-oriented programs, brands can gain the utmost sales growth.
With the advancements in technology and scientific models, the approach to grow businesses have also stretched at a large. Marketers, entrepreneurs, and business owners stay at a constant urge to create something new and unique to entice the entire customer range.
On the other hand, the whole process of business running is usually dependent on customers and if they are not given apt attention, companies might lose them after a while. That is why companies do need strategic plannings to make loyal buyers trust in their brand.
That is why nowadays, customer retention strategies are gaining the utmost importance than the acquisition. Most of the brands are likely to get enticed with the programs based on increasing customer lifetime value.
Customer shopping expectancy in his or her entire life is something that brands can increase by putting in a little more effort. It is somewhat close to customer retention programs but somehow a bit variant from retention strategies.
Let us read in the post further all about Customer Lifetime Value and its significance in the brand’s growth.
What is Customer Lifetime Value (CLTV)?
Customer Lifetime Value or commonly called CLTV, usually a specific period that the customer has spent during his entire life with some brand. The revenue generated through the customer over a while is counted as their overall time depleted for the said period.
For instance, if a customer has a monthly subscription plan of $200 per month and he continues to take that plan for the whole year. It means, the lifetime value of this client to the company comes out to be $2400 for the year. This is how it is being calculated.
When a brand works to increase customer lifetime expectancy, it simply shows that organizations are working whole-heartedly to prevent customer churn. Such a thing can be reduced of course, by taking customer retention strategies into consideration and implementation.
According to one report, 44% of organizations spend time, resources, and money on acquiring new customers. Whereas, only 16% of companies focus on retaining existing buyers and reducing churn. However, the data reveals that businesses focus less on retention and are more inquisitive to build up strategies to acquire new ones.
In order to expect customer’s overall buying occupancy throughout the stipulated time of his/ her shopping, as a brand, everything you create for your valuable customers should give them a reason to shop over and again.
Importance of Customer Lifetime Value (CLTV)
Over the years, marketers have come up with their definitions of describing how the CLTV or LTV works as a whole.
Undoubtedly, every organization’s priority is to create real-time growth in the number of sales achieved in a quarter. Or we can say, the total number of sales achieved at the end of the month during monthly audits.
However, to see sales growth, there are always a ton of loyal customers who are behind the company’s success. When a customer purchases something from the brand, it does not only invest in shopping but in return, he/ she does expect to get possible good service for their loyalty.
When we talk about growth in sales, different marketing strategies popped up due to several factors available in the market.
A lot of brands take help from several online platforms to let their brand name receive visibility and recognition. It is an ongoing process that becomes relevantly good for long-term marketing.
However, when it comes to benefit from something substantial, then some companies believe in implementing the most sought-after programs that could benefit them.
The most prevalent programs such as loyalty programs, rewards, employee recognition, customer engagement, et cetera are in the boom.
However, when we want to increase our customer’s life expectancy with the brand, companies tend to adopt relevant strategies to expand this lifetime value.
To help brands make the most of such strategies, here are some of the top tips to get started and increase lifetime customer engagement:
- Build a powerful relationship with customers
Building stronger associations is imperative almost everywhere be it professionally or personally.
In the age of digitalization, transformations are going on at a rapid pace. Amidst all the fast-growing world, keeping a close check on your customers is very important.
Sometimes, to grow business, companies usually fail to care properly of their esteemed customers, though this could not be intentional.
Managing the business, employees, partners, clients, and customers are the prime factors that every business owner needs to maintain which is fair enough to understand.
So, making sure that your customers are happy through a survey, introducing relevant enticing programs for them is one of the ways to know. As a brand, if you keep a check whether they take interest and participate in your any events make them feel valued.
This way, gradually the relationship gets even stronger among the businesses and customers.
- Resonate with your customer’s needs
Every move you make as a business owner will certainly make an impact on your customer base. It is not like you to keep on introducing new strategies to gain their trust every time.
It is more relatable to be readily available to resonate and help your customers whenever they need something.
Of course, social media is one of the biggest platforms of all eras where you can frame guidelines to build stronger relationships with buyers with your prompt responses to all their questions. It can take your engagement beyond horizons and could strengthen relationships with your customers.
Of course, it is not like holding their hand or spoon-feeding them whenever they are caught in a problem with your product or service. But, you can assist them or directly connect them with the right person without keeping their query on hold for long.
It is one of the most powerful strategies/doings for most successful business empires.
- Upgrade features for loyal customers
There is a famous saying – ‘to get some, lose some’. This entirely does not fit in here, but somehow very relatable in terms of fetching customer interest.
If your customers are likely to engage with your brand constantly, then chances to build up trust and increasing engagement also get higher.
To resonate with your audience, giving them something exclusive they didn’t know they wanted. It is one of the most considerate ideas of all time. For instance, if you have launched some additional service or a premium service, you can upgrade your loyal customers on it on a trial basis.
Customers will certainly feel happy about it because they never thought of using the brand’s latest service/ feature for free. It will make them feel like being your brand’s loyal customer has finally paid them off by receiving such a good gesture. It is one of the most creative customer engagement ideas of all time.
This may cost you very less, but the impression will be long-lasting. It will enable customers to do word-of-mouth promotion on your behalf among their relatives, acquaintances, colleagues, or friends.
- Take buyers opinions and credit their advice
Improvisation is important in every aspect of life. Whether it is to improve a brand’s visibility, strategies to market products or services, et cetera.
One superb way to keep your loyal customers completely enticed with your brand is – improvisation. Always leave a room of scope to improvise at every stage of manufacturing or selling. Instead of just going by the latest trends, just try to figure out what next your customers might look for.
To know their core preferences, brands can create a poll with a few of the top ideas. This can be sent to loyal customers by asking through your social media accounts or via email.
On the contrary, you can always ask your customers to put across some suggestions. To make this even more interesting, do offer some sort of gifts. It will make customers actively participate in the poll.
Even if customers get a chance to win small goodies like gifts, or a card appreciating their interest to add a new feature, trust, it will create a huge difference both for customers and brands per se.
- Make quality your priority
Every organization tries to do something extra special to make their customers happy. But, have you ever thought about what usually keeps them happy – the services, products, or the brand name itself?
When a brand has the best product, they keep trying to make it even better. It happens because brands want to stay on top of other competitors. Just think people will remember you for your awesome products that has to be paired with quality.
People love to have the best thing in their pockets, no matter whether the item is small or big. And, once you convince them of the quality of your items, they will do way more than just talking about it.
Apple’s brand users are the finest instance to prove this point. In one study in 2010, it has been revealed that products owned by Apple are designed and marketed in such a way that triggers the brains of people. It is said that this triggering is associated with the buyer’s particular religion that makes them buy only Apple products by heart.
It doesn’t matter how good you are in providing exceptional customer service. If your products are not creating magic in the customer’s minds, you are still behind the race.
- Send your customers your new product samples
Do you know how important the customer feels when they are being given something they never thought of? Yes, it does make a difference when they are treated differently and delightfully by the brand.
To impress customers is not always a big deal. It simply relates to a famous saying – “when you treat good, you receive good.” The statement says it all that when you will give enough care and attention to your most loyal buyers, you will certainly receive appreciation and loyalty throughout the years.
When you expect to expand customer’s engagement with the brand, you need to offer them something substantial. It must be hard to miss and unfeasible to forget sort of experience to them.
For example, whenever you launch some new service or product, you can send samples of the new product to your loyal purchasers. Alternatively, they will surely talk around in their circle about it.
Or else, you can just have a look at your loyal customers’ social accounts and you will know what they like to have or what makes them happy.
- Include your loyal customers in your content
In this digitalized era, content is the most relevant and specific thing that can bring the person in limelight.
As everyone uses social accounts so actively these days, brands can make the most of this opportunity using these platforms. Include the posts of customers who have shared even a single post of the brand’s product/ services, et cetera on their account.
Alternatively, take their posts on the brand’s official social accounts by taking a screenshot or so. By appreciating their efforts, they will certainly feel attached to the brand.
When they will see the recognition given to them publically, they will start to feel more inclined towards the brand. As a result, they would become one of the most reliable assets of the company.
For example, one of the leading make-up brand Forever52 uses to put videos or pictures in the stories of their Instagram account. These are those taken by makeup artists while using the brand’s products. And, what else anyone needs apart from recognition by the brand and receiving familiarity worldwide.
This is how the content is playing a magnificent role in building a brand name. It also increasing chances of customers getting more loyal towards the specific brand.
- Allure them with surprises
Surprises!! Who doesn’t like unexpected gifts or receiving surprises like cards, holidaying tickets, coupons, et cetera? This does not relate to birthday or anniversary presents at all.
Customer lifetime value doesn’t come by chance nor build up overnight. It takes a lot of commitment to entice and make your customer stay throughout their buying journey.
In fact, you can delight them with small goodies as a result of their constant loyalty towards your brand. It helps a lot to make them think about you every time they go out for shopping. So, it helps trigger their mind to visit the same brand every time.
However, apart from some gifts, customers will react happily to see small surprises. Such as free shipping, thank you cards/ notes, retweets of their posts about your brand, birthday coupons, et cetera.
Customer lifetime value can be authentic to build based on all the above-mentioned marketing strategies. These are some of the prevalent ideas that companies can design according to their business requirements or needs of customers.
Valuing your loyal buyers is essential if you want to gain their association for lifelong. It would be weird to say that acquisition of new customers should be paused completely. Instead, retaining existing customers through delightful marketing strategies should be backed with easier, manageable, and reliable ways.
If you wish to opt for exciting lifetime value programs, NextBee offers it all based on specific business needs. We are best known for offering a reliable lifetime value platform cum engagement model solution that caters to the needs of all sized businesses.
To know about our customizable customer lifetime value management solution, you can reach our professional marketing experts. They will give you brief insights about the solution.