Ask the Experts: 5 Ways to Increase CLV
Customer Lifetime Value, or CLV (and sometimes LTV or CLTV), can be one of the biggest determining metrics in marketing. It refers to the amount of revenue you can expect from the average customer over the course of their relationship with your brand. Naturally, marketers are constantly looking to improve this number, especially in comparison to the CAC (Customer Acquisition Cost). Striking the right balance between the two can come as a challenge, but thankfully, there are a few simple strategies experts employ for building customer loyalty, no matter where they are in the sales funnel:
- Give a gift: “One simple way to increase value per customer is to have an add-on 'gift' once customers hit a certain checkout price - with reminders of how close they are to the gift if they try to initiate checkout before hitting that number. For example, one of our beauty clients offers a limited edition bag once a certain checkout price is met.” - Joshua Bretag, CEO/Founder of Cubatica
- Always look up! “Building an effective sales funnel with an "upsell" strategy is key. It allows us to quickly generate the first sale with a tripwire and to rapidly offer a complimentary service or product with a limited-time offer.” - Samuel Sevigny, Head of Partnerships at J7. Michael Mellon, Co-Founder at SmartSites agrees here, adding: "Upselling and cross-selling are effective methods in increase your ACV. You can plug these additional products directly inside the checkout process (before & after checkout), in emails, and even retargeting ads."
- Use email marketing efficiently: “For our clients, we use a win-back email series 45, 60, or 90 days after someone bought something from them. Again – just like with any other email sequence, you need to experiment to see what works for your business (how many emails to send, how many days to wait after someone bought something, etc.). But what works for any industry and business is giving an incentive and creating a sense of urgency (e.g. sending them a discount and giving them 48 hours to use it). We also use predictive analytics – a relatively new feature in Klaviyo that allows you to see when and how much each of your clients is going to buy based on their past behaviors.” - Anastasia Shiverskikh, Marketing Director at Flowium.
- Leverage proper list segmentation: Continuing on the strategy above in #3, Chase Dimond from Boundless Labs added: "The holy grail of marketing is sending each individual subscriber the right message at the right time. And the best (and really only way) to accomplish this is through segmentation."
- Include your customers in your brand’s story: “As we often say at Gatsby, your customers are your best influencers. Partnering with your customers for influencer campaigns is a super impactful way to surprise and delight. Not only does it reward them, it builds a personal connection and fosters a sense of brand loyalty. Making customers a part of your brand’s story is a surefire way to make them customers for life, and now with Gatsby Next Gen, you can quickly identify the best ones to partner with, and track the moment they post.” - Brett Bernstein, CEO/Founder of Gatsby