This is why businesses pay so much attention to Customer Lifetime Value (CLV). CLV is the long-term trust that a business builds on its brand. It’s the difference between a short win and long-term sustainable growth – it’s a bouquet versus a garden; both will bring you joy, but one lasts a short time, while the other can be sustained for a lifetime. Returning customers are far more cost-effective to keep than working to acquire new ones.
Why is CLV so important? Because boosting customer retention by 5% increases profits by 25-95%. (source: Zippia)
Customers who trust you tend to buy more of your products, use more of your features, and concentrate their business with you.
How to Do It:
Minimize a return customer’s frustration and always look for ways to improve speed and efficiency on your website. Go through your site as if YOU are the customer. Did you find any issues? Come up against any obstacles? Was it a fast, clean experience? What could you do better? Clear those obstacles so that your long-term clientele keeps coming back.
Site speed is one of the biggest reasons for buyer abandonment. Check your Lighthouse scores periodically, paying special attention to the Performance and Accessibility score. Ensure your desktop and mobile sites are optimized and have clean interfaces. Make sure your site navigation is set up cleanly with category pages arranged in an informative, clear manner. Utilize product attributes and strong search settings to help customers find the exact items they want. Don’t make a potential customer abandon their cart and leave money on the table because they couldn’t find their way around.
Maintain a consistent and optimized crawl budget. Ensure critical pages are indexed; optimize sitemaps, robots.txt, and page speed. And always update real-time inventory, make sure your content has accurate specs, and advertise and promote clear shipping terms. Use best practices when collecting payment and use trusted payment modules. The last thing you want is a customer abandoning their cart at the last minute because the payment doesn’t seem secure.
How to Do It:
Personalization is a great way to show customers that you care about them as individuals, and most eCommerce and CMS platforms can help.
eCommerce platforms like Adobe Commerce have customer segmentation, which can use automatically applied rules to logged-in customers based on customer behavior. For example, if a customer self-identifies as a member of a segment that is most interested in car (as opposed to trucks or tractors) replacement parts, dynamic CMS blocks within the eCommerce site will update accordingly and show that customer lifestyle images and banners that promote car-specific items.
Personalization is also a great tool for digital marketing tactics like emails and promotions. By sending emails with relevant information based on customer segmentation, you will decrease your spam rate and increase your open and click-thru rates. Plus, customers feel heard and understood by your company.
Another great way to encourage customer loyalty is by setting up rewards and loyalty programs. While some eCommerce platforms have this feature natively, there are also third-party modules that can be integrated for setting up a rewards program.
By centering your marketing strategy around your customers and their needs, you significantly increase the likelihood of driving repeat business.
We’ve told you a bit about ways to increase CLV, but you want to know a great way to decrease your CLV? Don't spam them with irrelevant or excessive messaging.
Customers in the B2B world, especially, are all business – they know their industry and they want what they need. B2C shoppers are no different, and while they may be a little more forgiving, their fingers glide over that “Mark as Spam” button just as fast as you can hit “Send”.
73% of B2B buyers actively avoid contacts who send irrelevant outreach, according to a 2024 Gartner survey.
We recently performed an email list audit for one of our clients and cut spam complaints by 55% and dropped complaints from 0.14% to 0.01% in the very next email send.
In addition to a clean list, always look at your email content and make sure it is relevant to those who will be receiving it. Emails should focus on order updates, mention new features, and product education, and make sure to have clear CTAs, easy opt-outs, and defined objectives to build credibility.
No Comments Yet
Let us know what you think