The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The whole time a customer has a relationship with a company, a customer will spend money on a company’s goods, services, or products. This is what we call their “customer lifetime value” (CLV), and it is an important strategy for any business. It seems like common sense, but many companies focus solely on acquiring new customers, not retaining existing ones.
It’s so important, in fact, that just a 5% increase in customer retention can increase your profits by 25%. That’s a huge deal!
So, what are some ways you can keep your customers coming back for more? There are a ton of different ways, and we’ll talk about some of them in the visual below from GetVoip. In it, we cover seven tactics to increase your customer lifetime value.
One innovative way to build relationships with your customers is through user-generated content. When your loudest fans post photos of your product on their socials, you can share them on your company account!
This is beneficial for all parties involved because it allows your customers to feel semi-famous and it’s free content for you! Don’t forget to ask their permission, but you’ll find that most people are happy to have their content shared on a large account.
Another way to form a community around your brand, and one that Sephora uses, is to create an online community or portal for people who have bought before. Once you’ve done that, you can allow them to share tips, opinions, or reviews with each other and form a kind of community around your brand.
These are just a couple of ways to make sure your customers become repeat customers. Use the tips below to start cultivating happy customers today!