June 30, 2021

How to increase your customer lifetime value.

Every marketing guru will tell you that its cheaper to keep a customer than gain a new one. And you know what? It's actually true.

Think about your average customer. How much do they spend with you in one transaction? $100? $250? $500? Or more?

Is that a one-time purchase? Or do they make more purchases over time? When you think about how much they spend, and how the continue to spend that money over time, you really start to realize what the lifetime value of a customer truly is.

(Don't mind me over here in the corner crying about how valuable I am to Target...I'm sure they know. Because I just realized what my lifetime value is.)

If you want to increase your customer's lifetime value, here are some ideas to get you started:

  • Upsells - McDonald's made this cliche: "Would you like fries with that?" It's become a cliche, because it actually works. How many times are you offered to apply for a store card? Or Amazon "suggests" things you might like? (yes, I would like those leggings!) You already have a customer who is willing to buy from you. Don't you think they might be willing to buy something else from you?
  • Offers - How many things did you buy because "it was on sale"? Need I say more? Or do we need to make a Target run together?
  • Email Marketing - There is literally no other form of marketing that will give you the return on your money than email marketing. You spent the time to grow and nurture your list. And by sharing great content, they begin to know you, like you, and trust you. And we all want to buy from people we know.
  • Loyalty / Rewards - Setting up a loyalty card system or offering reward points is a smart way to encourage customers to return on a regular basis. Grocery stores are geniuses at this. You literally pay a premium (in the form of higher prices) to shop at a grocery store without a rewards card.
  • VIP Customers - Every business has VIP customers...My husband and I have been to Jack Daniel's Distillery over in Lynchburg, TN, not too far from where we live. We have always wanted to be one of their VIP customers. If you buy an entire barrel, they bring you to a cottage on the property and bring out several barrels for you to choose from. You get to try the whiskey and then they bottle it all for you, with your name on it. And you get your name on the wall in distillery. This is not a cheap thing....They literally roll out the red carpet for you. One day, when we win the lottery, we are headed to Jack's. What do you do in your business to make your customers dream about?

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