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3 Tips to Bolster Customer Lifetime Value

Want your customers to stick around for longer? Then check out this guest post to see three ways you can increase customer lifetime value and brand loyalty.

kitchen supplies 3 Tips to Bolster Customer Lifetime Value

Whether you’re just starting your ecommerce business or you’re a seasoned e-tailer, it’s pretty common knowledge that the competition online is fierce.  Tons of businesses are competing for the same customers’ dollars.  So, while it’s great to drive new business, there are always ways to make more money from those who have already purchased from you. In this article, we’ll walk you through three strategies for increasing customer lifetime value: Building conversions, nurturing relationships and driving loyalty.

Let’s get started.

 

1. Building conversions

In order to build conversions, you’ll have to convince your visitors to like and trust you.  To do this, you must establish credibility and consistency throughout your website. Something as simple as adding a secure payment badge, or a 30-day money back guarantee on the check out page can greatly impact your conversion rate. Here’s an example of the badges we use on our payment landing pages.

bolstercustomerlifetimevalue1 3 Tips to Bolster Customer Lifetime Value

Creating consistency on your site will also build trust with your visitors.  A friendly and cohesive web design should be standardized across all of your landing pages so your visitors are not confused or turned off during their shopping experience or check out process.

 

2. Nurturing relationships

Once you’ve built a substantial list of customers, don’t be afraid to keep the conversation going with them to see what other products or services you could offer them.  We’re all familiar with the famous upsell: “would you like fries with that?” Well, ecommerce shouldn’t be any different.

Try promoting complementary products or services similar to the already purchased ones via email marketing campaigns. For example, if your customer bought pet food, an email mentioning pet grooming products may be a suitable upsell. Other great ways to keep the conversation going include inviting your customers to follow your social media profiles for promotions and savings, conducting a post-purchase survey or requesting a review of product ordered.

Regularly updated social media profiles allow you to connect with your followers and increase brand awareness when your customers are ready to purchase again.  With more followers, you have a greater chance of having your social promotions seen, heard and syndicated to others who may also be interested in your products or services.

Asking customers to fill out a post-purchase survey or write about their purchased product will help you gain valuable customer feedback for building more targeted email campaigns and provide even more credibility on your website that will drive more conversions.

Here’s an example of a customer reviews page from Pepper Palace:

reviews2 3 Tips to Bolster Customer Lifetime Value

 

3. Driving loyalty

Another way you can keep your customers coming back is with loyalty programs and promotional offers.  One of the most commonly used promotional offers I’ve seen is free shipping with orders over a certain dollar amount.  In fact, it’s almost standard to offer free shipping as an added bonus these days. Alternatively, a rewards program that keeps growing with every dollar you spend is another great incentive to keep your customers coming back for more. Many airlines, hotels, restaurants, banks and credit cards have built rewards programs when purchases are made, and your store can follow suit.

Depending on your product offering, you could also offer a special dollar amount or percentage off coupon, or even a free gift with a purchase.  Here’s a great example from CoolPencilCase.com providing freebies with an item purchase.

coolpencilcasedeal 3 Tips to Bolster Customer Lifetime Value

 

 

These are just a few of the key strategies that you could use to boost customer lifetime value. As ecommerce becomes incredibly more competitive, it’s become significantly more difficult and expensive to drive new converting traffic.  Increasing the customer lifetime value and overall revenue from your existing customers is a proven way to drive more sales and brand awareness without having to increase marketing budgets.

Have you had any success with these marketing programs with your ecommerce store?  Tell us your experience in the comments section below.

 

 


Jana Fung is the Marketing Manager of MixRank. She has managed successful demand generation programs for over 6 years. She is optimistic about the growth of online advertising and has a passion for helping online marketers with their campaigns. Follow her on Twitter @jana_fung

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