Along with fulfilling the business goal, increasing the revenue of a business is the most important in today’s business. You can increase the revenue of the business by
- Acquiring new customers
- Retaining the existing customers
In practical getting the new customers is more challenging than retaining the existing ones.
For this reason, most of the companies now are focusing on retaining the existing ones that can yield more revenue in the company. This can be measured by using the Lifetime Value (LTV) of the customer.
Customer LTV is the revenue one single customer gives over a lifetime. It’s a faster way to get additional revenue through the retention of the customers.
Let us see how you can take some steps to increase customer LTV.
What you can do?
a) Provide Customer engaging content:
Every business has to provide quality content to the customer which engages them and gains their attention. One way to do this is by Email marketing.
Many businesses don’t take this medium seriously but Email marketing is one of the best ways to retain customers. With Email marketing, we can send quality content which empathizes with our product or service.
b) Provide best customer support:
Customer service is the most important factor in retaining customers. Customers expect us to respond quickly to their queries and when we do that we can gain their trust. This is how we gain loyal customers.
Companies should also have live chat to respond to queries immediately. As per studies, 80% of buyers want companies to respond and interact with them in real-time.
c) Social Media Presence:
In this era of technology and Information, no company should miss a chance to be in public. It is done by being active on Social Media.
Every company should be visible to the people and that is done by Social Media. Social Media acts as a bridge between customers and the company.
d) Take feedback from the customers:
Taking feedback and acting accordingly makes customers feel that their opinions are valued. That helps us to understand how we are performing and at the same time, it helps retain the customer easily.
Digital has become a valued media in advertising and all the above mentioned experiences can be best given through Digital medium.
How can Digital play a role?
With the power of revolutionizing the way marketing is done, Digital platforms are very effective in bringing out results through certain campaigns which can help increase the lifetime value of a customer.
I. Remarketing Campaign:
Remarketing campaigns target only the existing customers and the customers whose data is with the company. That means, the customer already has heard or purchased from us and has a high chance of listening or reacting to your message.
Due to this, the conversion rate would be high compared to tapping new customers. By targeting our previous prospects/customers through remarketing campaigns, we are increasing the change of a customer complete the purchase.
II. Upselling and Cross-selling campaigns:
Once a product/service is sold, that is not the end of our transaction with the customer. It is a chance to sell a new line of products/services to the customer. We can do up selling where we push customer to take/buy the next category or premium product/service in the same segment, or we can cross sell a similar kind of product/service to the customer.
Both these campaigns help companies to increase the customer LTV.
Conclusion:
The above mentioned are some of the practices that are to be followed to increase customer LTV. There are more ways to help companies in making their customers buy repeatedly. But, it all depends on the kind of business they are in. This is where, Digital marketing agencies like Inmantech can help provide better solutions to SMEs while the businesses focus on what they do best – running their business.
For any company, Customer Lifetime Value is important and is one of the factors that define the success of a business.
Getting new customers is important but at the same time meeting the expectations and needs of the existing customers is also equally important.
Contact us to know how you can improve the lifetime value of your customer and grow your revenue from the existing set of customers.