5 Strategies To Increse Costomer Lifetime Value
5 STRATEGIES TO INCRESE COSTOMER LIFETIME VALUE Customer Lifetime Value Matters!
5 Strategies To Increse Costomer Lifetime Value
Customer Lifetime Value Matters!
Retain your customer base always in business!
Look for increasing the CLV.
Follow these simple steps to scale your business for the long term consistently!!
1. CUSTOMER TIER SEGMENTATION
EVERY CUSTOMER HAS DIFFERENT NEEDS. YOU CANNOT TREAT A ONE-TIME CUSTOMER AND A RECURRING CUSTOMER IN THE SAME WAY. SEGMENTING YOUR CUSTOMERS INTO DIFFERENT TIERS, SUCH AS ONE-TIME CUSTOMERS AND VIP CUSTOMERS, BECOMES CRUCIAL.
2. MAINTAIN A KNOWLEDGE BASE
KNOWLEDGE BASE WILL HELP YOUR USERS UNDERSTAND YOUR SERVICES AND USE YOUR PRODUCTS IN A BETTER WAY. IT WILL ALSO SET UP EXCEPTIONAL CUSTOMER SERVICE IN YOUR BUSINESS FOR CLV BOOST IN YOUR COMPANY.
3. COLLECT ACTIONABLE FEEDBACK
EVERYONE LOVES GIVING OPINIONS AND WHEN COLLECTING FEEDBACK, IT PLAYS IN YOUR FAVOR. YOUR CUSTOMERS FEEL VALUED WHEN YOU ASK ABOUT THEIR EXPERIENCE OR THEIR FEEDBACK. A SIMPLE RULE OF THUMB SAYS HAPPY CUSTOMERS ARE MORE LIKELY TO STAY WITH A BUSINESS THAN THE UNHAPPY ONES WHICH WILL IMPROVE CUSTOMER LIFETIME VALUE (CLV).
4. INCREASE AVERAGE CONTRACT VALUE
ONE OF THE MOST EFFECTIVE WAYS TO MAXIMIZE CUSTOMER LIFETIME VALUE (CLV) IN YOUR BUSINESS IS TO INCREASE THE AVERAGE CONTRACT VALUE. HERE'S WHY. REMEMBER THE FORMULA TO CALCULATE CUSTOMER LIFETIME VALUE I MENTIONED IN THE BEGINNING.
5. REDUCE CHURN RATE
WORKING ON REDUCING CHURN RATE CAN HELP YOU TO INCREASE CUSTOMER LIFETIME VALUE (CLV) OF YOUR BUSINESS. A STUDY SHOWS THAT REDUCING CUSTOMER CHURN BY 5% CAN BOOST YOUR BUSINESS PROFITS 25-125%.
