How to Increase Customer Lifetime Value
A good LTV is not only a high average check, but also a high retention rate. It costs on average five times less to retain an existing client than to attract a new one. Therefore, it is important to think not only about the first sale, but also about what happens to the client afterward.
The main thing for a good retention rate is for the client to be satisfied with the product or service, the communication during, and the interaction after the purchase. And how else can you work with them and with LTV?
Use different customer interaction channels in conjunction. Remarketing campaigns, email campaigns, chatbots, SMS, and messenger notifications. The more touches—the better you are remembered and easier to get back.
Use the sale of a more expensive version of the product and presales. Expand your product line to increase your target audience and have more options for presales. Use other marketing activities to ensure that customers will return and bring you profit.
Segment your audience
Collect data on your customers and segment your audience. Personalized campaigns, promotions, and sales help retain customers.
Loyalty programs
Develop a clear and profitable loyalty program that will motivate customers to come back to you. Use referral programs to make customers bring friends to you and receive bonuses.
Feedback
Collect and process feedback. This way, you'll understand what can be improved in the product or service. In addition, honest and detailed feedback is a plus for potential customers to trust you.
To Sum Up
LTV in monetary terms will allow you to optimize your budget based on the potential profit that each client can bring in at the current moment. By doing so, you will be able to invest in engagement more effectively. However, proper LTV management as well as other marketing activities such as RFM segmentation can be accomplished much easier with a feature-rich platform designed specifically for this purpose. That's exactly what Reteno offers.