In Part 1, we took a look at your clients’ lifetime value through a simple calculation. Now let’s explore 5 ways in which you can increase that value.
1. Personalize your offers
When planning offers, make sure you segment your client base by behaviour and interests. A customer who never purchases women’s clothing should not be receiving offers for dresses. A client who just made their first purchase with you should not receive the same offer as someone who’s been shopping with you for 2 years.
Remember to segment by purchase preferences as well as transaction frequency and recency. It’s also important to send targeted offers to any clients who have been making fewer purchases with you.
2. Send thank-you emails
A thank-you email following any purchase is an excellent way to stay in touch with clients. This is a way to strengthen your relationship with customers and show them they are appreciated. Take advantage of this opportunity to reinforce their level of satisfaction or send an offer for a future purchase or a satisfaction survey.
3. Stay in touch regularly with pertinent information
By communicating with customer on an ongoing basis, you will keep your brand top of mind. Regular emails are a quick and efficient way to strengthen your relationship with clients and encourage them to continue shopping with you. If you offer products online, it’s a good idea to have an email campaign in place to remind clients of any abandoned shopping carts.
Be sure your communications remain pertinent and are sent at the right frequency. You can do this by segmenting customers by purchase frequency and adjusting the communication cycle accordingly. Be sure to adjust your message based on client preferences. Don’t hesitate to conduct tests to get the frequency and messaging right.
4. Put a cross-selling strategy into place
Cross-selling is an excellent way to increase sales. Plan your strategy, diversify your approach, and include complementary and pertinent product suggestions when customers make a purchase. This can be done easily with an email following a purchase. Target the purchase cycle of each product or service category and reach out to clients when it comes time to re-purchase a product.
You can also offer products or services in bundles or packages. It’s a great way to create value for clients while increasing your average basket value.
5. Offer a loyalty program
If you’re looking to maximize your clients’ lifetime value, a good way to achieve this is through a loyalty program. According to a recent Canadian study, 79% of Canadians are more likely to stay with a brand that offers a loyalty program, and 65% will adjust their purchase behaviour to maximize the benefits offered by a loyalty program.
Not only does a loyalty program encourage long-term relationships with customers, it also makes it easier to capture information as well as personalize the purchase experience, your offers, and all communications. Together, these help to increase your customers’ CLV.
Feel free to get in touch to learn more about the different types of loyalty programs available and for personalized support when it comes to designing and implementing your loyalty strategy.