Customer lifetime value (CLV) or lifetime customer value is defined as the total amount of money the customer expects to spend with your business or your products during their lifetime. Every business should be on top of this metric because it helps the business to make the right decision when investing money to acquire new customers and retaining your existing ones.
A reputable digital agency will focus on increasing your customer lifetime value over time. If not, you are not reaching your full potential with the money spent on marketing. That’s why you should be utilising the services of a reputable and experienced digital marketing agency such as ETRAFFIC to increase the CLV of your business. Following are the reasons why you can depend on ETRAFFIC to increase the customer lifetime value of your business in the long run.
Increasing customer lifetime value is a case of working smarter and not harder. Making more money from a single customer means you don’t need a massive amount of customers on your roster. This gives you more time to focus on the core functions of your business – which is crucial to the overall success of your small business. That’s why you need to work with a trusted partner like ETRAFFIC.
We are experts in devising the right strategies to improve the customer lifetime value of your business. We implement effective strategies to build solid customer relationships, upsell your services, and build customer loyalty in the process. We will maximise your CLV so that your potential increases exponentially.
Many digital marketing agencies in Australia place a big emphasis on bringing in new clients for your business. This is a good practice when done correctly however if not, it can backfire on you big time. Finding new clients will cost your business both in terms of time and money.
Just imagine what would happen if you go to all the trouble of attracting new clients but they only make one or two purchases from you! The money you spent on acquiring them would be a complete waste. The aim should be to make the most money you can from a single customer. The more money you make from a single customer, the better this is for your business.
Most businesses don’t maximise their returns from single customers because a lot of the time, they are targeting the wrong audience and bringing in unprofitable customers. That’s why working with a trusted partner like ETRAFFIC to devise the right strategy, you will attract highly profitable customers and increase the CLV of your business.
It’s been proven that existing customers already know your brand and trust it. Furthermore, you have already done the hard work to win them over. The latest statistics show that a business has a 60-70% better chance of converting existing customers compared to a 5-20% chance of converting a new customer. So, how will you get an existing customer to spend more money on your business in the long run? That’s where relationship building and upselling come into the equation and why these are two of the most important strategies you should focus on when it comes to retaining existing customers.
Our agency uses three key strategies to increase the customer lifetime value of your business. We understand that customer loyalty towards your brand is essential to increase the CLV of your business so we have developed the following key strategies to increase the customer lifetime value of your business:
Increasing the sales per order is the first strategy to increase the customer lifetime value of your business. You should be motivating your customers to spend more money on every transaction. We will implement the right strategies to help increase the sales per order and improve the bottom line of your business.
Increasing the number of sales your business closes over time is the next strategy to increase the customer lifetime value of your business. This strategy will focus on the number of transactions of your business while the first strategy focuses on the value of the individual transaction.
Reducing the cost of serving your customers overall is the third strategy we use to increase the lifetime customer value of your business. The costs of serving your customer include all the costs such as packaging the product, shipping the product, and answering service calls of the customers, etc. The lower the costs of serving your customers, the more profits your business will make in the long run. This is an important strategy to increase the lifetime customer value of your business.
Our expert marketing team at ETRAFFIC can devise the right strategies to increase your lifetime customer value and improve the bottom line of your business.
Please call us today at ETRAFFIC if you want to increase the customer lifetime value of your business.