As a business owner you most likely know that each customer has a lifetime value to your business. This is often called the CLV or customer lifetime value. It roughly translates into the amount that you can earn from any one customer as they enter your product funnel. For example we all purchase food, so if you’re like me and tend to shop in the same shops week after week, year after year then the total amount of money I spend during these years of continuous shopping represents to the business my lifetime value. Understanding your CLV can help determine ways to expand your CLV.
Be More Customer Centric
Customer service is one of the most important parts of any business. Even if you have the best products or services in the world, if your customer service is lacking you won’t last long as your customers won’t like you. If you want repeat buyers, treat your customers with the importance and respect they deserve.
Build Targeted Upsells
With technology like LeadPages.net you can easily create an automated system to build up-selling opportunities into your customers buying process. For example, you might like to do it in the shopping cart itself, or you can do it through follow-up emails.
Create Logical Cross-Sells
A cross-sell is a just selling a different product to a current customer. It should relate to your audience, but it doesn’t have to relate to the other product that you sold them the same way an upsell generally does.
It’s imperative that you set up a system that makes you seem super responsive to your customers. Whether that’s an automated ticketing system, a 48-hour answering policy, or open office hours doesn’t matter. But, you need to be perceived as being very responsive to keep your customers happy.
Every product or service that you deliver should be better than the customer expects. The fact is, you won’t please everyone all the time, but you can always aim to over deliver. If a customer is unhappy, you can over deliver with your solution to fix their problem thus turning problems into future opportunities.
Create a Referral Program
Let your customers earn money or discount points by recommending you to other people. Often, when people can earn enough money to support their buying habits, they’ll be more likely to spend money with you. It’s a win-win all the way around.
Find ways to stay connected with your audience, such as social media, email, teleseminars, and webinars. The more ways they can connect with you, the happier they’re going to be and the more your CLV will expand.
Develop an Inner Circle
One way to expand your CLV is to provide a fee-based inner circle that certain customers can join. It can be on a private forum or even utilize a private Facebook group or create your own forum with native software.
Nothing is more important in your business than your customers, understand and accept this so that it is at the core of everything you do. The more you can study what your customers need and find a way to deliver it to them, the longer they’ll stick with you. But, you have to keep creating products to keep those who’ve bought from you interested and wanting more.