Customer Lifetime Value – a key metric for the success of businesses. But it’s often “overlooked” and overshadowed by growth metrics and new customer acquisition strategies.
Customer Lifetime Value – CLV is an extremely important factor in both the profit from a customer in a transaction, and the value they bring in the journey of sticking, interacting with the business.
What should be done to optimize Customer Lifecycle Value?
The optimal CLV strategies will be more about bringing back customers than attracting new customers. Therefore, this index depends greatly on customer perceptions at all points of your product or service touch.
There are countless ways to optimize CLV. You can use the CLV optimization strategy itself to position your brand’s message, vision and goals. Optimizing customer lifecycle value is a personalization endeavor, and brands that understand that core will be at the forefront of the game.
You may have dozens of predefined strategies in mind but still wonder if there is a tool, a solution that can help implement those ideas effectively. Don’t worry, there are many tools that can assist you, especially as AI technology improves, making it easy to get what you want.
Optimal strategies rotate keywords like customer experience, acquisition, retargeting, feeding, and customer loyalty. Make sure your strategy focuses on these factors. Especially the two elements:
- Attract customers
- Buyers / Loyal customers
So how to optimize the customer life cycle?
- Segment of visitors
Personalization and relevance are the main keywords, visitors are always looking for information that really meets their own needs. To do this, businesses need to segment visitors based on a multitude of factors such as customer behavior, purchasing ability, enjoyment of promotions, …
Being able to segment users means you can reach them with the right messages. Segmentation also helps you identify customers who are trending to leave, thereby pulling them back to interact with the brand.
- Simplify the buying process
Buyers will not buy from you if the buying process is too “messy” for them. One of the reasons that lead to shoppers leaving the website is ineffective product discovery and discovery. When visitors visit the website, they find the fastest route to their problem-solving place.
This is where you need to strike a balance between pushing the products you think is trending to the top of the page with your users’ search for the product. Numerous studies have proven a solution that enhances the product search experience to drive 33% more online sales (Net Imperative).
Mobile continues to be the leader in engaging interactions. Therefore, more and more users are expecting businesses to be able to provide a smooth experience on mobile devices. Immediately applying this strategy, creating mobile apps, or improving the smart mobile experience is imperative to attract and retain the modern customer segment.
- Build a “unique” purchase journey
Your potential customer is more and more careful and needs a lot of deliberation before making a buying decision. On average they perform activities at least 6 points on the website.
Customers can make purchases on different devices, multiple purchase channels with diverse needs. This is an opportunity for businesses in general and marketers in particular to optimize the process of reaching customers at each touchpoint.
However, sometimes businesses will also be “overloaded” in coordinating personnel in channels to meet all customer requirements. The explosion of contact channels such as Facebook comment, Messenger, Zalo, Switchboard, Instagram, Youtube, … makes each employee will have to take on many different channels and have much trouble switching between channels.
With a large amount of traffic to the website, businesses will want to optimize into potential customers. Then lead them on a buying journey that best suits their needs to effectively close their order.
At OnCustomer, we have applied automation and communication personalization technology to build “unique” buying journeys for each customer group, through chatbot website streams and campaigns. message.
- Product Suggestions
Businesses need to improve Average Order Value (AOV) to increase sales, meaning customers need to be more motivated to put more products in their shopping cart. To do this, businesses need to provide users with appropriate suggestions.
Each customer has different problems, so general recommendations like the most popular or popular product may not work. You need to go deeper, giving contextual messages to grab their attention.
How to understand customers’ needs even when they don’t speak?
It sounds impossible, but with the increasing growth of AI, technology to automate customer behavior tracking, this is completely feasible.
It’s even more amazing that businesses can capture the needs of their customers at the moment they visit to shorten the buying process and increase the efficiency of closing orders.
- Build short stories to increase web experience
Do you know what can make you stand out? A good story.
You probably also know about the success of Instagram Stories. 500 million users interact with Instagram Stories every day. 59% of brands on the Instagram link to the purchase page on stories. Users are very likely to interact with these short messages.
- Pull users back up as soon as they tend to leave
Businesses aspire to pull users to the website, and some of them leave the website without leaving a conversion. There are countless reasons to explain this, and one of them is that businesses do not really understand customers’ needs, customers cannot find their own solutions to solve their own problems.
Retaining visitors, driving them to convert is the decisive factor for the success of the website. You also do not know the needs of each customer. While watching a customer prepares to leave, a page exit banner can be a lifesaver for the business. Popup exit can be a good choice or “rescue” for businesses in this “sensitive” moment.
- Sincerely respond to customer feedback
Optimizing the customer lifecycle is the process of building relationships with your customers, and it’s a two-way relationship. Customers want to feel valued, they want to be heard.
That’s why it’s so important to get feedback from your customers. No one wants to just listen and not be shared. If the business wants customers to listen to you, you must be willing to accept what they want first. It is a relationship that requires two-way interactions.
You don’t have to carefully write a letter to your customers, ask them about their purchase experience, and expect a response. Feedback is something that is very light, easy, as simple as possible.
The easiest is to allow customers to leave reviews right on the website. These are simple 1-step behaviors, like a 5-star rating, or clicking on quick answers to some questions. Whichever way you choose, customers will surely feel the sincerity from the business.
Spend time and budget on personalizing your optimal strategy Customer lifecycle value is a must. Not only are the tools of selection or automation techniques included, but also the positioning of the brand associated with the customer base.
Understand customer segments, build the most unique and effective customer attraction plans.
Enticing customers and Retaining customers are often considered a duo of elimination tactics, most businesses will favor a specific website development orientation. However, an optimal strategy Customer lifecycle value must be a blend of both – complementary enticing and retaining each other.
Improve customer experience, personalize them for maximum satisfaction. Make the most of excellent technical tools and solutions in your strategy.