Before we can tell you how to increase customer lifetime value, it is important to understand WHAT it is.<\/p>\n
Customer lifetime value or CLV<\/strong> refers to the total business that a single customer has provided to your online store during their ‘lifetime’. This ‘lifetime’ usually ranges from 12-24 months.<\/p>\n So, in simple words – In the last 24 months, how much did one customer buy and how much did they spend?<\/p><\/blockquote>\n For an eCommerce business, CLV is one of the most valuable metrics to track. If the CLV of one customer is high, that usually means that customer-<\/p>\n If your average CLV of the customers at your online store is high, that would mean that your customers are generally satisfied and have loyalty to your brand. And isn’t that the goal of every eCommerce business?<\/p>\n The success of a business depends on customer satisfaction. The higher the satisfaction, the better are the sales. Simple.<\/p>\n Related read:\u00a0How To Get Repeat Customers; 5 Proven Ways For Customer Retention<\/a><\/strong><\/p>\n Satisfaction is a bit tricky for eCommerce businesses. In the pre-pandemic era, customers could walk into a store and have ALL their needs met immediately. But now, online store owners are trying to replicate that when visitors come to their eCommerce website<\/a>.<\/p>\n One of the key factors that influence customer relationships<\/a> is the quality and frequency of communication.<\/p><\/blockquote>\n And more.<\/p>\n If you notice, these questions don’t just focus on delivery queries and shipping timelines. We shouldn’t restrict customer communications to just helping a customer with the refund or return policies.<\/p>\n The eCommerce trust report 2022<\/a> – Read it here<\/p>\n<\/blockquote>\n Here are the 5 hacks that can help business owners increase customer lifetime value when they sell online<\/a>:<\/p>\n Let’s explore each of these in detail.<\/p>\n Customer service should never be limited to after-purchase service<\/a>. Increasing communications from discovery to post-purchase help in customer retention and loyalty. Here are the different touchpoints where you can optimise your communications to get maximum sales:<\/p>\n This is the stage at which a potential customer has discovered your brand on social media or on a search engine like Google. Discovery can be accelerated through digital marketing and performance marketing strategies that help expose your brand to new people.<\/p>\n Related read:\u00a0Digital marketing for your eCommerce startup: A checklist by Adyogi<\/a><\/strong><\/p>\n The potential customer is now considering your brand and your competitors. This is when your communication should prove WHY they should choose you. You can:<\/p>\n The visitor to your online eCommerce store is convinced. They have the product in their cart but haven’t completed payment yet. Here are a few ways you can ensure conversions:<\/p>\n Sign up for our weekly newsletter for similar business insights on<\/strong> how to sell online, management, marketing and finance tips – all in your inbox! Subscribe Now.<\/a><\/p><\/blockquote>\n The customer wants complete visibility of where their product is after they complete a purchase. Constant communication on the delivery status of the product, reason for delays, expected time of arrival etc. will help keep the customer satisfied.<\/p>\n If you can keep a customer satisfied during the return and refund process, Invesp says there’s a 92% chance that the customer would buy from you again.<\/p>\n Effective and polite customer service during this stage can help build customer trust for your eCommerce business.<\/a><\/p>\n Data plays a huge role in personalising the purchase journey for a customer. It helps create awareness about the customer’s browsing and buying patterns. The data that you track (with consent!) can help you:<\/p>\n Every customer is different and unique. Making each customer feel like their unique needs are being met is the sign of a successful online seller.<\/p>\n Your customers will never come to where you prefer, you will have to go to where your customer is. It is important for you to be active on all communication channels so that you can address customer queries instantly.<\/p>\n Here are some examples of the different communication channels:<\/p>\n With Mezchip, you can manage all your communications from one single platform.<\/p>\n The leading reasons for concern and disappointment often are delayed replies, incorrect information, lack of awareness within the team itself, juggling your store and communications etc.<\/p>\n Automating the communication process has multiple benefits that reap amazing rewards. Here are a few ways you can utilise automation for your online store.<\/p>\n [\ud83d\udca1 Canned responses:<\/strong> These are a set of pre-defined\u00a0 questions and answers that customers frequently ask for<\/em>]<\/p>\nWhy is customer lifetime value such an important metric?\u00a0<\/strong><\/h2>\n
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Customer satisfaction concerns in eCommerce\u00a0<\/strong><\/h2>\n
Here are some things that a customer considers before becoming a repeat purchaser –\u00a0<\/strong><\/h4>\n
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Read our FREE whitepaper<\/a> on cultivating stronger eCommerce relationships with consumers<\/h2>\n
5 hacks that tell you how to increase customer lifetime value:<\/strong><\/h2>\n
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1. Recognize potential points of interaction throughout the customer journey<\/strong><\/h3>\n
Discovery<\/strong><\/h4>\n
Consideration<\/strong><\/h4>\n
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Purchase<\/strong><\/h4>\n
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Delivery<\/strong><\/h4>\n
Returns and refunds\u00a0<\/strong><\/h4>\n
2. Personalising communications for better customer experience<\/strong><\/h4>\n
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3. Omnichannel communications as the need of the hour\u00a0\u00a0<\/strong><\/h4>\n
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4. Automation is the magic potion<\/strong><\/h4>\n
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