The truth behind sustainable growth in your eCommerce lies in understanding how to maximize customer lifetime value (CLV) — in other words, obtaining more repeat and loyal customers.
Fact: Did you know it costs five times as much to attract a new customer than to keep an existing one? If until now you were mainly focused on gaining new customers, it’s time for a new course of action.
There are six secret tactics guaranteed to convert your shoppers into repeat customers, and eventually, into loyal customers. And today you’ll learn them with our useful formula that’s very easy to remember.
Next time you’re wondering how to increase that customer lifetime value, just remember one word: CRISIS — we do have a flair for the dramatic.
How to Maximize Customer Lifetime Value in your eCommerce with the CRISIS formula
CRISIS stands for:
Content that engages
Rewards
Interactivity
Subscriptions
Inspiration, and
Special Customers
Let’s see what each one of these mean.
Content that Engages
A customer may stay with you just because they like you. After all, it’s human nature. If they appreciate your content and if it adds value to their lives, they’re going to check with you first before reaching out to the unknown. Consider creative content outlets besides blogs and emails such as reports, researches, interactive videos, or any other format where you can share awesome information your customers will appreciate.
Rewards – Discounts – Loyalty Programs
Believing that a discount will minimize your brand or business structure can hinder your growth. Offering discounts to a repeat customer says, “I value you.” This doesn’t mean you have to break the bank. Just as in life, customers appreciate the thought — you thought of them enough to send a special email helping them to save their money!
Tie that into a purchase or service that is targeted directly to them in response to past interactions with your brand (whether purchases or communications), and you’ve got yourself not only a second sale but a customer for life.
Interactivity in Content and Customer Service
Your social media accounts are active. Now what? Engaging with your customers on social media shows that you’re paying attention, and you care enough to reply to their comments and answer their questions in a timely manner.
It’s not just for answers. You can use social media to ping customers when a new product they like hits the shelves! The shopper’s decision to pick you, instead of your competitors, can be influenced simply by staying engaged and being part of their everyday life. Remember to exercise patience, empathy, and clear communication!
Special customers deserve VIP treatment!
It’s all about the details. Loyal customers should know how much you value their business. Treat special customers as VIPs, and they will be your loyal fan club, forever! This leads to not just their return support, but their family, friends, and social media outreach as well. And what makes a customer feel like a VIP? Your attention to detail in getting to knowing them and their interests.
A study by Oracle showed that more than 50% of customers admitted they don’t mind sharing personal information if that means they’ll receive tailored content! You can offer product recommendations based on their preferences and previous purchases and use it to send them content you know appeals to them. Also, think of offering freebies, free shipping, upgrades, or a little personalized *anything* as a way of saying thank you and win over their hearts!
Inspire Trust
Take off your sales hat for a moment and take the time to learn about your customers. Contact them for other purposes than to make a specific sale. Be there for them after they’ve bought from you. Treat them as you would want to be treated. Consider featuring them and their stories and opinions in your social media posts, or implementing suggestions that customers have made and then giving them credit for it.
Subscription Services
A subscription service is one of the few ways to guarantee repeat customers. A subscription business model is based on the idea of selling a product to receive monthly or yearly steady, and recurring revenue. We talked a little bit about it in one of our previous posts, where we discussed eCommerce trends. If you can find a model that works with your business, go ahead and do it!
Using the CRISIS formula to maximize customer lifetime value in your eCommerce will help you keep, nurture, and secure your customers to turn them into lifelong fans of your service or product! After all, several reports show that 80% of your possible profits are from 20% of repeat and returning customers. You have to love them to keep them!
Contact us today for help developing a customer loyalty program tailored for your business!
Read also:
- How to Supersize Profits In Your eCommerce With Funnel Building
- 5 Trends Transforming NetSuite eCommerce As We Know It
- How to Increase Revenue and Gain Customer Loyalty with Discounts and Offers – Part 1
- How to Increase Revenue and Gain Customer Loyalty with Discounts and Offers – Part 2
- 10 Surefire Tips to Create a Customer Loyalty Program that Works
