How To Increase Customer Lifecycle Value?

by worxpertise edge Maximising Customer Lifetime Value

To grow your business, you have two options.

Acquiring new customers is the first step.

The second objective is to increase the lifetime value of existing clients.

A lot of evidence shows that increasing revenue steadily and predictably is a better strategy. Nevertheless, only 16 percent of companies are focused on reducing churn, despite the traditional wisdom that it's cheaper to retain and delight an existing customer than to find a new customer.

You can provide greater value to your brand during their lifetime relationship with you if you can keep a customer for a longer period. We call this customer lifetime value Service.

How Do You Calculate Customer Lifetime Value?

Here's the simplest definition of customer lifetime value: It's an indicator of how much profit a company can make from a single customer over time.

The higher the CLV, the more revenue your company makes from each customer. Your company can therefore afford to spend more money on acquiring new users and retaining existing ones since each client becomes more valuable.

What are the most excellent ways to augment customer lifetime value?

The change from a monthly to a yearly billing cycle can increase CLV and this can be done through accounts receivable service, as well as overhaul your customer support system. Following are some proven tactics to generate more revenue from existing customers and increase your average CLV.

1. Streamline the onboarding process

To ensure sustainable business growth, onboarding is the process you shouldn't skimp on when it comes to customer success. Since bad onboarding accounts for 23% of all churn, it should be a top priority.

You can make the greatest positive impact here since your customers are engaged with your product. Due to this, you should develop a strategic onboarding process to keep new users returning for more, increasing your company's lifetime value.

2. Engage customers with valuable content

The most effective way to retain customers is email marketing, yet many companies approach it the wrong way. Their automated drip campaigns offer no value instead of sending content with value.

1.       You should send emails that emphasize the value of your products or services to your customers:

2.       Send clients an email each week or month letting them know how much money you've saved them

3.       Inform clients how many support tickets they have successfully resolved per month if you provide help desk software

Consider sending your customers an email telling them how much less carbon dioxide they have created by using your product over a competitor's.

3. Provide excellent customer service

Your business will grow and retain customers if you invest in quality customer service. It doesn't matter whether your product is above average or below average - if your service is bad, customers will defect to your competitors. Consumers are likely to switch brands following a poor customer service experience, according to data.

A better customer experience comes from better customer service. In turn, that will increase your chances of getting loyal long-term customers from your existing customers. However, how can you improve customer loyalty and increase customer lifetime value by providing top-notch customer service? Consider these tips:

·         Deliver omni-channel support

·         24x7 customer support

·         Keep an eye on social media

·         Provide live chat support

·         Establish a knowledge base

4. Forge relationships

Strong customer relationships account for 16% of customer churn, ensuring the continuity of your business.

As a business, it's essential to cultivate a healthy relationship with the client throughout their customer journey. To make them feel appreciated, you need to make them feel you are a proactive, professional company. Understand their expectations and feelings. By surveying your customers, you could gain a few insights that would allow you to better deliver what you promise.

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Created on Jan 4th 2022 11:05. Viewed 243 times.

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