Customer lifetime value is one of the most critical topics in eCommerce. Customer lifetime value refers to the overall revenue an e-commerce company earns from a customer over the course of their relationship with the company.
But most businesses need to optimize it actively. Here are 12 easy ways to raise CLV (and, as a result, increase your profits):
Invest in Having Happy customers
That title is vague, so let me be specific. Invest in:
- Having excellent customer service
- Building high-quality products
- Making shipping times faster.
Happy customers turn into repeat customers. Spend time and money to make them happy.
Pre & Post-Checkout Upsells
This is more of an average order value raiser, but higher AOV often leads to higher CLV.
Test upselling high quantities or complementary products before and after checkout.
Another AOV raiser.
This is a quick upsell you do at checkout. Test having a complementary product or a bulk discount that only requires a checkbox to add to the order.
Sell Consumable Products
Every business is different, but if you can sell something consumable, do it.
Food, cosmetics, etc. That way, repeat buying is built into your business model.
Sell Collectable Products
The second best behind consumable products are collectible products.
But I’m not talking about vintage action figures. People like to buy many things, like wristwatches and clothes.
Create A Recurring Offer
The most efficient way to get recurring revenue is by building a regular offer.
That’s why so many brands are using the monthly subscription box model. See if you can build one for your brand.
Optimize Email Marketing
This is a massive channel for getting repeat buyers.
Build and test your automated flows (cart abandon, welcome, etc.) first. Then start building a content strategy that keeps people engaged and buying.
Build Organic Social & SEO
Just know that applicable, SEO-optimized blog content and good organic social content definitely enhance customer lifetime value.
Create High-Priced Backend Offers:
This is a big one in customer lifetime value, especially in the info product space.
You might sell a $20 book on the front end, then a $500 course and $5000 coaching program on the back end.
Give your biggest supporters a chance to support you massively.
Create an Emotional Bond:
People who are emotionally linked have a 306% higher customer lifetime value than satisfied clients. (martechseries)
Create content that’s sweet or funny, not just sales. Make people like your brand and the people behind it
Customer loyalty and customer lifetime value are basically two connected research topics.
If someone buys from you a lot, reward them with special discounts.
You can automate this with email marketing.
Increase customer lifetime value by providing unique rewards, incentives, and opportunities.
Another way to reward your top supporters is by giving them bonuses for referring friends.
Set up a system that does this.
That way, you get more CLV for the referrer and a new customer.
IN A NUTSHELL
The quality of the customer experience defines the longevity and expansion of a business. Simply put, a decent definition of customer lifetime value would be something like this: the longer a customer is a customer of your company, the more value they bring to it.