Boosting revenue by enhancing customer lifeline value
- 26 Jul 2023
The digitized business landscape presents a plethora of challenges for eCommerce business owners when it comes to retaining customers. Does it make sense to have a strategy where you need to chase new customers round the year?
By offering adequate customer support, eCommerce business owners can leverage their customer lifeline value. It pays to retain your existing customers rather than hunting for new ones. Success comes when you manage to maximize your returns from existing clients. No wonder, why business leaders prioritize customer lifetime value.
While boosting your customer lifeline value, it’s imperative to prioritize two aspects. Firstly, try to increase the number of repeat purchases. Secondly, eCommerce business owners should try to make high-ticket sales.
In this post, you will come to know some strategies that should help you enhance customer lifeline value for your business.
What is Customer Lifetime Value?
Customer lifetime value (CLV) reveals the revenue that a business owner can generate from a single client, compared to the duration throughout which the customer is likely to stick to the business. For eCommerce brands, customer lifetime value is a key parameter to gauge the average accumulating value of the total purchase they make during a period. The value helps business owners understand whether or not the venture can scale up the returns from marketing. Moreover, CLV enables business owners to assess the retention strategy based on how high or low the LTV is.
Having robust customer support is imperative in this context. Customers often want to chat with customer service, and feel gratified when you can fulfill their expectations. This generates further brand loyalty, leading to future sales.
Increasing customer lifetime value: What are the effective ways?
Ecommerce business owners deploy two strategies to increase the customer lifetime value. Either they increase the average purchase frequency, or the average order value. When any of these metrics increase, you would benefit from a greater customer lifetime value.
Here are some of the other strategies that should help you boost your CLV.
- Enhance customer support
The secret to increasing your customer lifetime value is to enhance your customer support. Successful brands treat their customers in a way as if they are a part of the corporate family. This helps them gain repeat customers.
As much as 86% of your potential buyers would consider customer experience to be a factor based on which they establish business relations with you. This explains why eCommerce businesses need to configure a multi-channel customer support strategy. Whether they want to chat with customer service, or contact the help desk through phone calls, emails, or social media, they expect a swift reply.
Developing a foolproof customer support strategy ensures that they receive the desired help before sales, during their purchase, or even after the sale.
Evidently, a powerful customer support tactic assists potential buyers throughout their journey. No wonder, why successful eCommerce platforms deploy AI tools and chatbots to respond to their customers’ queries 24/7. This way, they can resolve the issues that their customers might be facing. As you offer more value to your customers with this committed approach, they are likely to return and make consistent purchases.
- Present occasional gifts
Well, we all love getting freebies. As an eCommerce business owner, you should cultivate this psychology of your customers. Your existing customers would love receiving surprise gifts from the website they shopped from. Experts consider this impact to be the happiness halo. Fostering a positive essence about your brand in the psychological space of your clients, you can increase your customer lifeline value.
Occasional gifts, incentives, or discounts also help in developing a loyal base of return customers.
- Offer subscriptions
Offering subscriptions to your customers happens to be yet another strategy that can increase their lifeline value. This is one of the new eCommerce trends. With these subscriptions, you can rest assured of increased purchases by the customers. In return, they can enjoy discounted products, faster delivery, or other perks over ordinary buyers.
Nudging your buyers into these plans calls for specialized marketing skills. Successful platforms display a price for their products on the basis of subscription. On the other hand, they display the actual price that customers without the subscription get. This way, eCommerce brands demonstrate how potential customers can benefit from these subscriptions.
You might also display the subscription as the default method of purchasing. Even if customers want to make a single-time purchase, they need to check out through the given purchase method.
- Upselling products and add-ons
Have you considered pitching your products for upsells or offering add-ons for your products? This is an effective way to push relevant products to existing customers. To increase the order value, make sure to use analytics to evaluate their purchase behavior. Accordingly, you can recommend suitable products for them to vouch for.
Take care to choose the products you nudge before them. Otherwise, the experience can turn out to be annoying. Given that you had invested a significant amount trying to acquire your new customer, it’s time to maximize the returns by upselling. This strategy will also help you save money that would be necessary to acquire new customers.
- Offer premium versions
Besides offering the ordinary versions of your products, you can introduce premium versions as well. However, it’s imperative to demonstrate how the premium products would benefit your customers. This way, you can increase the ticket sizes of your sales. Customers willing to purchase quality products would vouch for the premium products. This split-pay strategy can work wonders by increasing the customer lifeline value of your business. Selling premium products at a higher value will help you boost your revenue.
Conclusion: Brand loyalty generates more revenue
Increasing your customer lifetime value can leverage the progress of your business. By offering better customer support, you can minimize the acquisition costs of new customers. This will help you make significant savings on sales and marketing activities. So, if your customers want to chat with customer service, configure an AI chatbot for round-the-clock support.
When you get into the shoes of your customers, you can realize what they exactly expect. With the right approach and after-sales support, you can bring them back to make return purchases.
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