Success in the eCommerce market is not only about attracting new customers but also about retaining your existing ones.
Customer Lifetime Value (CLV) is a Key Performance Indicator (KPI) that can dramatically impact your bottom line.
CLV is the total revenue a single customer generates during their engagement with your brand, whether only once or over one hundred times!
If this is a KPI that you want to focus on, you need to utilise strategies that encourage repeat business and build customer loyalty.
Our Top Ten Strategies for Customer Loyalty
Tailor your marketing efforts and all other customer interactions to individual preferences. This begins with analysing customer behaviour and purchase history to provide target product recommendations and offers through personalised email marketing campaigns. Customers react positively to feeling valued and understood and are more likely to trust the brand and make repeat purchases.
2) Loyalty Programs and Reward Schemes
Reward customers for their loyalty with discounts, exclusive offers, or a redeemable points-based system. These schemes are simple to set up and help to foster a sense of belonging and commitment to your brand community.
3) Customer Service
Exceptional levels of customer service are a key component of promoting brand loyalty. Start by tackling the basics, such as promptly responding to inquiries and resolving issues efficiently. Satisfied customers are the most likely to return, and positive word-of-mouth has more power than you think!
4) Consistent High-Quality Products and Services
Build a reputation as a reliable brand that delivers high-quality products and services consistently to build trust with existing and potential customers.
5) Content Marketing
Use content marketing as a way of showcasing your industry knowledge and expertise. Educational content, such as blog posts and how-to guides, is especially effective at engaging customers, as it offers value by solving their problems and answering their questions.
6) Email Marketing
As mentioned earlier in the blog, email marketing is an effective tool for any eCommerce business. As part of your email marketing campaigns, segmentation is the answer – this should be based on customer behaviour and preferences, linking back to the personalisation aspect of your strategy. Send messages to your customers relevant to their interests, such as providing helpful information, promoting new products you know they’ll love, and offering exclusive deals.
7) Post-Purchase Engagement
The customer lifecycle shouldn’t be finished after a purchase. Aftersales engagement goes beyond order confirmation and shipping updates. Ask for feedback on your services and product reviews to keep the relationship strong and gain valuable insights from your customer base.
Speaking of reviews, adding these to your website copy or social media posts can help build trust with potential and existing customers. A positive review or testimonial can go a long way towards convincing customers to make either a first-time or another purchase.
9) Cross-Selling and Upselling
Cross-sell by suggesting products that complement those already bought by or are in a customer's basket.
Alternatively, upsell by encouraging an upgrade to a more premium product or service.
If successful, both tactics will increase the customer’s order value and their CLV.
Continuously monitor the behaviour of your customers. Use the CLV metrics to analyse the success of your strategy and adjust to meet your business goals and optimise results.
Maximising Customer Lifetime Value in eCommerce means creating a loyal customer base that grows with every new customer acquired. You can significantly boost your CLV by implementing one or a combination of the tactics mentioned in this blog.
Need help putting these strategies in place? Contact ExtraDigital to help your business grow by building long-lasting customer relationships.