In marketing, customer lifetime value or simply CLV refers to a prediction of the net profit attributed to the entire future relationship with a customer. It is an important concept as it encourages firms to focus on the long-term health of their customer relationships rather than the quarterly benefits. Higher the CLV, more successful is the business. Here’s a list of what all can be done to increase the customer lifetime value:
Start it up with your employees:
The very first step towards increasing the CLV is ensuring that the employees working for your company should have an appreciation for your products. As a matter of fact, when they genuinely believe in the proposed benefits of the products that they sell they tend to convince the customers too. As a result, the customers see the employees as experts on the respective subject. It further helps them be confident enough to make purchases.
Acknowledge and appreciate customer’s suggestions:
This is an effective strategy of increasing the CLV. It requires you to create a poll with the new ideas you’ve come up with and share it via your blog, social media accounts, and more. Also, make it possible for the customers to provide their feedback on how they perceive your ideas. Moreover, they can also suggest their own ideas if they have any. In case you are updating any of your service based on your customer’s feedback, give them credit for their contribution. Also, let other followers know about it through social platforms.
Choose the rewards wisely:
When it comes to rewarding your customers, it’s very important to choose the rewards wisely so that the customers feel valued. Well- the thought of rewards can actually increase your CLV by promoting customer loyalty and boosting profitability. So, it’s advisable to opt for value-added services instead of discounts.
So, the next time you look for ways to improve your CLV, do not forget these three basic rules.