Any good business knows that each customer brings value to their organization, but a great business understands how to maximize that value over time to increase CLTV, or customer lifetime value. After all, numbers don’t lie, and it’s been proven that directing efforts towards retaining existing customers will increase your revenue faster than marketing to brand-new customers – especially when you consider that existing customers on average also spend 67% more than those who are new to your business.
Does this mean you should ONLY focus on marketing to your business's existing customers? Of course not – but it’s indicative of the results that a focus on retention (rather than acquisition) can deliver. And, because we wouldn’t be TalentPop if we didn’t dish out a few tips and tricks, we’re here to give you examples of leveraging your CLTV by improving your overall customer service and customer experience. But first, let’s get into what CLTV is and why it matters for your E-Commerce business.
Why Does Your Customer Lifetime Value Matter?
Simply put, customer lifetime value is a measurement of the total amount of revenue you can expect to generate from a customer during the period in which you’re serving them. For E-Commerce businesses, this metric is crucial to examine when deciding where you should be allocating your marketing dollars and valuable resources.It also provides major insights into where improvements can be made in your business, especially as it pertains to customer service.We know all too well that a poor customer experience can drive customers away from your business and straight toward your direct competitors, which ultimately affects your bottom line in two primary ways:
- Your business just lost, well, BUSINESS. Sigh.
- You will have to spend more money acquiring new customers to account for the loss.
When you invest in customer service, however, your CLTV will dramatically increase because your existing customers will feel valued and be nurtured into making repeat purchases, and your positive reputation will attract new customers.
Amplifying CX To Increase Customer Lifetime Value
With the holiday season in full swing, you’re likely seeing a rush of customers flooding into your digital storefront (thanks, Santa!). This influx of customers is a huge opportunity for your business to make a lasting impression on shoppers who have high CLTV potential. To maximize the holiday rush, let’s dive into 5 great examples that can add value to your customer experience.
1. Provide High-Quality Customer Service
We’ve said it once, and we’ll say it again – customer service is truly the backbone of your business. If your customers have a bad experience, either because of slow response times or a complicated, unorganized process, 89% of customers will start doing business with a competitor, and 50% will tell their family and friends about the poor experience. Not exactly the results we want from a holiday rush, huh? To enhance and optimize, try implementing these support methods & tips:
- Establish omni-channel support. Today, multichannel support isn’t enough to keep customers happy and supported. Omni-channel is the new standard of support wanted by 9 out of 10 consumers – it allows your customer service team to seamlessly move between various support channels such as phone, text, and live chat without making the customer repeat their issue to multiple agents.
- Offer live chat. Many customers want lightning-fast answers, so having a live chat option available for shoppers to ask a quick question about shipping, returns, or a product can reduce tickets and make your customers feel supported.
- Provide 24/7 support. Around-the-clock support is especially important if you serve customers in various time zones, but even domestic customers appreciate being able to contact a support agent at any time to help them resolve their issues.
- Keep phone support available. Don’t knock the value of phone support – if a customer is struggling to resolve their issue on their own or via another channel, a quick phone call can put them at ease and answer their questions right away.
- Outsource customer support. Some may say you can’t put a price on great customer service, but we sure can – for as low as $8 per hour, you can outsource customer service with TalentPop and hire vetted and highly-trained E-Commerce agents dedicated to elevating the customer experience at your brand.
2. Establish Subscription Offers
If it’s an option for your business, consider offering a subscription-based solution for your customers. Various apps including ReCharge and Skio make subscription management easy for your team, and your customers will appreciate being able to receive your product continuously without having to re-order every month. Plus, subscriptions allow you to estimate the CLTV for each enrolled customer on a year-over-year basis and optimize support accordingly to make the experience absolutely seamless for current and future customers.
3. Focus On Upselling and Cross-selling
When done properly and strategically, upselling and cross-selling to your existing customers can increase your customer lifetime value as well as your average purchase amount. Consumers who’ve purchased from you before are already familiar with your products, so offering them bundles and great deals for additional products will incentivize them to lean on you rather than seek out a competitor. Be mindful of the timing for your cross-selling and upselling offers, however – when extended or pushed at a bad time or under the pressure of a tight deadline, the offer can seem annoying to customers.
4. Create Valuable Content & Resources
Content that excites and informs will keep your audience engaged with your brand and on their minds when it comes to upcoming purchases. Use your website and social channels to establish a strong presence with blog, email, and social content that forms relationships with your customers. Both educational and entertaining content are powerful tools for locking in loyal customers (hello, high CLTV!) and keeping new client acquisition costs down.
5. Reward Loyal Clients
Clients who are loyal to your brand love being rewarded with special offers and just-for-you promotions because it makes them feel valued and seen. Plus, loyalty programs increase your CLTV by encouraging your customers to make larger purchases from you more often. Think about Amazon Prime, one of the most well-known loyalty programs. Customers who become Prime members get access to perks like free next-day shipping, a streaming platform, and exclusive deals. The program not only motivates customers to take advantage of it, but it also keeps the brand top-of-mind when members are making their shopping decisions.
Outsource customer service to increase CLTV starting this holiday season
At TalentPop, we’re experts in customer service, and we’re here to help you maximize your holiday shopping traffic and increase your CLTV with agents who are trained in all the latest E-Commerce platforms and programs. With no long-term contracts, you can scale your support up or down as needed – it’s as simple as that! Let our talented agents help you lay the groundwork for a higher CLTV in 2023. Book a call with our team today, and we’ll show you how easy it is to outsource customer service and create a better customer experience with TalentPop.
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