A company can select different kinds of metrics to gauge the effectiveness of their customer service. Metrics such as bounce rates, number of online visitors, conversion rates, and bounce rates are all important. However, one metric that outweighs all others in importance is CLV, or customer-lifetime-value.
CLV can be used to identify the worth of the customers. The value is calculated by determining the total profits that are generated by a particular customer minus the expenses incurred in nurturing the customer.
Here we will share some of the invaluable times that can help a company to boost the CLV and ultimately the business profits.
1. Encourage Annual Subscriptions
One way to boost CLV is by encouraging customers to switch to annual billing cycle. Committing the customers to annual subscription can reduce the churn rate, which refers to the customers cancelling the service. This will give additional time to the company to demonstrate value to the customers.
Customers that switch to annual billing will generate more CLV than monthly subscribers. In some cases the revenues generated by the customers that use the product for only one or two months will be negating.
2. Recognizing High Value Customers
Everyone likes being recognized for their contributions. So, recognizing the high value customers can make them remain loyal to the company. One seafood company named Harpoon Harry’s Crab has mastered this technique in boosting CLV. The company regularly features repeat on its Facebook page and make them the center of attention. The diners repay the gesture by regularly dining at the eatery boosting business profits.
3. Give Regular Surprises
Everyone loves free stuffs. You can offer delight your high value customers by surprising them from time to time. Consider offering the customers with free shipping, discounts, postcards, birthday coupons. This can help in creating a positive response from the customers resulting in improved CLV.
4. Create Multiple Engagement Points
Another advice to improve the CLV is to connect with the customers through different points. Whether it’s Facebook, Twitter, Instagram, or Live Chat, the more easy you make for the customers to connect with the company, the better the customer response resulting in improved customer loyalty.
5. Aim the ‘Wow’ Factor
In this day and age, creating the ‘wow’ factor is not just optional, but an absolute necessity. The customer that is amazed by the exceptional customer service is more likely to remain committed to the firm.
In the end, CLV is an important metrics that determine long term company profitability. The above are some of the effective steps that can help boost CLV and increase the loyal base of customers. Consider making a list of things that can help delight the customer. Once the list has been identified, you should assign the customer care personnel to incorporate the strategies when providing customer service. Remember that the more effort you make in delighting the customers, the better will be the response from the customers.