Before moving ahead in this article, first, you need to know about the CLTV. Basically, CLTV (customer lifetime value) is the average revenue in an E-commerce business that you can make from consumers over the whole lifetime of their account. For instance, if a consumer signs up for your product for ten months, the amount that the consumer will pay during the period will determine his lifetime value.
It is simply calculated by average retention time, the number of repeat sales, and multiplying the average order value. But apart from the calculation, you also need to recognize that CLTV for dissimilar shoppers will be dissimilar.
However, various web development companies in India provide a lot of effective ways to their clients to increase CLTV. So, here we will discuss effective ways to boost customer lifetime value for your E-commerce Business :
Segment Your Customers Based On Purchase Behavior
- The first thing is that keep your customers segmented from 1st day. The way to attract customers is different. They have different kinds of an idea to attract the people towards himself. By using an E-commerce analytics platform you can easily do this that brings all your store and marketing data on one dashboard. Your analytics tool helps to create customer segments out of your data. An important E-commerce segment being:
- First-time shopper
- Big spenders
- Full prize customers
- Discount shoppers
- Repeat shoppers
- cart abandoners
- VIP and local customers
Set up a Customer Account Page
In order to complete a purchase, everyone is trying to make it easier. The simplicity of creating a purchase is just what drives your users closer to you and takes them away from competitors. One of the most used strategies to get your online store visitors to complete a purchase is offering guest checkout. An analytics platform also gives you an abundance of data on your customers.
Start a Customer’s Loyalty
That is where customer loyalty comes in to improve customer lifetime value for your e-commerce Microsoft word. If you setting up a loyalty program, you are the enticing customer to make more purchases from you instead of a reward. That they can reward of on their next purchase. When you are offered exclusive pre-launch coupon codes and you want to avail them right away.
Address Post-purchase Order Anxiety Upfront
Approx. 85% of buyers are willing to pay for a great customer experience. But one bad understanding leads to not just losing the customer. Typically this happens when post-purchase anxiety comes in.
The further worried your customer is, the fewer likely they are to come back to you. By setting up order tracking pages on your E-commerce website and trigger automated status updates on email and SMS and you can address this. Launch upsell and cross-sell campaigns
Don’t wait for customers to visit your store and explore all your product ranges. Many of them are most distracted that they will probably just land on the page and leave in few seconds. This negates the opportunities of improving customer lifetime value. Don’t forget to set up cross-sell and upsell campaigns from the start.
Both on-site as well as off-site strategies that introduce your customers to more products. For case, displaying product recommendations on your store will help you make contextual suggestions to visitors. And make them want to interact with you, thus increasing the opportunities for conversions. Once a shopper makes a acquire introduce them to complementing products by transfer them an email. And let the customers engaged with your brand.
Leverage Multichannel Marketing
The customers no longer time use one channel to interact with your brand. Instead of this, they exhibit multi-screen, multi-channel behavior. Let us know the importance of multi-channel marketing for your E-commerce business.
Multi-channel marketing enables you to talk with your customers across channels maximizing your platform appointment. Channels help you engage with your customers for a variety of use cases cart abandonment, product recommendation, and more.
Another channel to engage with your customer is Facebook. But you have to know that you could actually more with the messenger than setting up a basic bot on your Facebook page. You could reach out to customers on messenger to share their reviews and rating of a purchase they recently made. The customer could get your request to them faster and make them feel valued, positively impacting your customer’s lifetime value.
Run Retargeting Campaigns
Always browsed on an E-commerce store and then suddenly been followed by display ads across the web. Remarketing ads need to be an element of your customer engagement and maintenance strategies right from the start. They are not just used to recover abandoned carts, but also to continually remain at the top of your customer`s mind.
Ask for Customer Feedback and Suggestions
It is very important to make a concrete strategy to get feedback from your customers. When you have this as the example in an email, web push, and other marketing channels. Numbers of times you will see brands focusing on making shoppers complete the purchase.
These are few questions that can make or break your relations with customers, directly impacting your customer lifetime value. Always remember to collect feedback:
- At the point of order delivery
- Immediately after the order delivery via email, Facebook messenger, and on a phone call.
- After a few days from order delivery via email, SMS, and on Facebook messenger.
- But also remember, we are talking about feedback and not requesting ratings.
Help Customers Make the Right Purchase Decision
Making more sales is the end objective but reaching there doesn`t need to be all about pushing discounts. And deals in front of the user till they generate a purchase. When the competition is on the rise, the one thing. What is definite to make a customer want to buy from a brand is faith.
And that cannot be won by the biggest of discounts it comes only when you make it a priority to help shoppers make an informed purchase decision. Make sure your product pages include all the important information about the item to enabling live chat on your site.
And this can be done in several ways. The idea is accessible to shoppers when they have an inquiry and address those with the highest honesty. They are more likely to enjoy the order once deliver when you help a consumer make an informed purchase. And they more likely they are to come back for more, hence increasing your customers’ lifetime value.
Introduce a Subscription Model
There is a list of grocery items that you purchase every month. On the other hand, there are a lot of other things that we, as consumers, buy repeatedly. And based on what industry your E-commerce Business is in and what kind of products you sell. Setting up a donation model can boost your customer’s lifetime value.
It is like ensuring recurring revenue for your E-commerce Business. You can also cross-sell and up-sell your subscription model, introducing your new products to your customers. As the more products they explore, the more likely they are to come back for more. And especially when the products become a part of their day-to-day affairs.
Getting Onboarding Right
When you have an eCommerce website was a differentiator previous for consumers to make their selection. Today is all about the onboarding experience. And the brand needs to remember that they only get a single opportunity to make a first impression.
The second reason is why customers drop off is because the product service they close to fail to deliver value. And easily resolved by focusing on your onboarding process. You can tailor your onboarding process accordingly by understanding your customers and their pain points. Show the customers the value they can receive during the onboarding process itself.
Keep them Engaged
If you have acquired and onboarded your customers, it is important to keep them engaged. Or you can say your app will be lost in the sea of shopping apps on a user`s phone. And keep them coming back to the app with campaigns across channels like push notifications. When they are in-app, keep connected with them in a contextual and personalized manner.
Reduce time to First Transactions
An eCommerce brand can be reducing the time to first transactions by creating a sense of urgency. To clear this point let us take an example TATA Star Quick does a good job in reducing time to first transactions for every new user. Users are more likely to add more cash to the app and make a purchase, with periodic triggers to use this free amount.
Leverage Marketing Automation
Relying on marketing automation will help you to stay organized when the goal is to boost sales and maximize your budget. Such platforms will help you to drill down into minute details about your customers. It is important to evaluate the total cost of ownership so that you get the biggest bang for your buck. Pick the tools that do multiple things rather than choosing separate analytics and engagement platforms.
Encourage Repeat Transactions
A great way to boost customer lifetime value is repeat transactions. By cross-selling, you will be able to solve your customers` problems to a great degree. And by offering subscriptions or upgrades, you can encourage repeat transactions.
Reward Loyal Users
Honor clients who keep coming to your platform by making them feel special. Give surprise and delight to your loyal customers and make them feel important. And celebrate their special moments like birthdays and anniversaries.
A loyal customer is satisfied with your product and services so the cost of retaining them is low. Additionally, by making them feel special, you are making it easier for up-sells and cross-sells. In addition to increasing in order values and occurrence. All this leads to an increase in customer lifetime value.
Top-Notch Customer Care:
For the success of an eCommerce application, the not-so-secret sauce lies in a seamless customer experience. Poor consumer service is a deal-breaker, particularly with today’s authorized consumers.
Some ways in which consumers can be taken care of contain providing 24/7 support, listening to consumer feedback, live chat support, actively implementing it, and a ready access knowledge base.
Having an engagement platform and integrated analytics platform can assist you to engage consumers across each micro-moment starting from browsing through sharing a review post-purchase.
Offer Value-packed Content:
You need to offer value-packed content that keeps consumers engaged. To retain consumers, email marketing is one of the great ways, but most E-commerce Businesses go about it the wrong way. They run automated drip campaigns without providing any value instead of sending value-packed content. The best kind of emails to send to your consumers is the ones that give emphasis to your service or product value:
- Send a weekly or monthly email by telling consumers how much money you have assisted them save that month.
- Send a monthly email to consumers by informing them how many support tickets they successfully solved if you give help desk software.
- Email your customers to tell them how much less carbon dioxide they have produced by using a competing product if you sell an environmentally friendly product.
Each service or product delivers value.
The key to an effective message is to find that value and present it to your consumers in a method that describes your contribution. Your major aim is to recognize the touchpoints, map the consumer journey, and send out highly targeted personalized campaigns so that to make yourself visible as a consistent source of knowledge.
Provide High-end Customer Service
To help your business increase retention and grow, quality consumer service is a compulsory investment. Consumers will defect to competitors even your product is above average or your service is below average. Better consumer service equals a better consumer experience so it is important to offer good customer service.
Now, you can discuss your business planning with the top android app Development Company in India. But, a question is raised how do you provide customer service that boosts customer lifetime value? Here are some things that you ought to consider:
- Provide Omni-channel support.
- Provide 24/7 supports.
- Monitor social media.
- Provide live chat support.
- Maintain a knowledge base.
To the ongoing success of your business, making a good consumer relationship is important. It is crucial to take care of a healthy bond through the consumer journey and during all your interactions with a customer. Get to know your viewers and tap into their expectations and feelings. In this respect, surveying your consumers will give you a handful of insights.
When you have something to sell, be monitor and proactive in consumer health by connecting with your audience on a regular basis. To take immediate action in case of a sudden decrease, keeping a pulse on consumer satisfaction will also permit you.
Focus to build relationships with the top parts of your consumer base, executive staff, and key contacts. Conduct quarterly business reviews to ensure that you are on a similar page and ask for feedback on existing procedures.
Identify Common Pain Points and Give Solutions:
You can identify your common pain points by reading the reviews of customers and after detecting them you need to provide solutions. The surveys make this task simple by permitting you to gather actionable feedback and identify common pain points for consumers who are unhappy with your brand.
When the most applicable complaints are identified, these have to prioritize depending on the frequency of happening. Another approach will be to prioritize the concerns that overlap with both detractors and passives. In an accessible format, when the issues are detected and prioritized, the appropriate departments need to be granted and informed full access to the required data.
Now you must have known about the effective ways to boost customer lifetime value for your E-commerce Business by reading the above-written points. Your revenue will increase if you have value consumers. These effective ways are applying by a lot of eCommerce development companies in India to increase customer lifetime value for their eCommerce business. Hope you like this article.
If you want to know something more about customer lifetime value (CLTV), inform us by leaving a comment in the comment section. We are always here to provide you informative articles so get in touch with us.