How to Increase the Lifetime Value of Consumers

The structure of our modern economy often necessitates that you increase the lifetime value of your consumers as time goes on if you want to remain profitable, yet countless entrepreneurs have no idea where to begin when it comes to generating additional cash flow from their existing customer base. This is perfectly understandable – after all, most people who know how to extract as many bucks as possible from a consumer don’t just give that information away – but failing to overcome this issue all but guarantees inevitable commercial failure.

It’s time to stop hoping your customers spend more and get to work instead, ensuring that they come back time and again. Here are some helpful tips for increasing the lifetime value of consumers.

Maximize your data collection efforts

One of the easiest, most cost-effective, and contemporary methods of bolstering the lifetime value you can derive from your consumers involves maximizing the data you collect on the customers who you do business with. From the very get-go, however, aspiring startups and established businesses that hope to vacuum up consumer data need to understand that this topic must be approached carefully. After all, if you inadvertently surveil your consumer base or accidentally collect the wrong type of data, you could generate a PR crisis that can cost untold sums of money.

Despite the perils associated with data tracking, it’s essential to create consumer profiles of your regular customers if you intend to increase the lifetime value of customers. An excellent mantra to live by when collecting consumer data is to only collect that information which ensures you can offer them better goods or services in the future. If someone’s information is utterly irrelevant to your industry or commercial niche, then taking extensive steps to collect and store it won’t only be a waste of resources but may also justifiably upset concerned consumer and give them the impression that you’re spying on every shopper who walks through your doors.

Set some time aside to read up on collecting consumer data without going overboard and surveilling the very people you’re trying to win over. After you’ve generated enough consumer data, you’ll find that the next steps towards increasing the lifetime value of consumers are much easier to accomplish.

It’s imperative to stay in touch

Perhaps the most essential aspect of getting a customer to return to your business is staying in touch with consumers even after they’ve first forayed into your shop or onto your webpage. This is where collecting consumer data comes in handy – if you have a plethora of emails, telephone numbers, and other contact information to make use of – you’ll find it much easier and affordable to stay in contact with a wide variety of customers by and large.

Staying in touch with customers as you grow is particularly difficult, so don’t feel bad if you’re a successful entrepreneur struggling to maintain a connection with early supporters who have since become lost in an ever-growing sea of new consumers. Useful advice for staying in touch as you grow entails creating a two-way dialogue, as getting some feedback – quite literally any feedback – from a customer ensures they’re listening to your messaging and have you in the back of their mind.

Don’t think this entire process has to be digitally-driven, as there is a myriad of ways that you can take offline information and put it to use in the modern marketplace. The process of data onboarding is something that all SEO services should review if they’re attempting to maximize lifelong consumer value, as there’s a treasure trove of information that could help you heighten your profit margins even though none of it is currently digitally accessible.

You have to make it worth their while

All this talk of data can easily lead towards you getting lost in a complex digital operation that’s hard to monitor.  That’s why it’s also important to remember that data by itself won’t cut it, if you’re seriously committed to increasing the lifelong value of consumers, you’ll need to make it worth their while to return to your business sooner rather than later. Often, this means deals and discounts, something some entrepreneurs shun on the basis that it costs too much to slash prices just to drive a few more customers your way. In reality, though, properly leveraged loyalty programs and consumer discounts can make the difference between a thriving difference with plenty of repeat customers and a struggling shop with a few loyal consumers.

It’s also unfair to customers to insinuate that they’ll come crawling back to you in a slovenly fashion just because you give away a few dollars’ their way. Forging an excellent customer rewards program necessitates that you view your consumers as individuals seriously worth rewarding because of the support they’ve given to your brand over the years. McKinsey has released some excellent research indicating that customer rewards programs only pay off if the consumer experience is quick, easy to understand, and instantly rewarding. When customers are aware of the “loyalty points” they’re scoring, the system can even be gamified to such an extent that shoppers look forward to spending their money to reap savings or rewards down the line.

Don’t think that shoppers only want monetary rewards, either; sometimes giving away brand merchandise is an ideal opportunity to not only thank loyal customers but also to turn them into mobile advertisements for your business. You don’t have to turn every customer who’s visited your shop more than once into a brand ambassador, but those business owners who refuse to tap into the advertising potential of the consumer base are letting a premium opportunity go to waste.

Be sensitive, transparent, and calculating

It may look like an awkward trio, but if there are three things you need to know more than anything else, it’s that sensitivity to consumer needs, transparency in how you handle their information, and calculation in how you determine when monetary value is being generated. You can’t give too much away, as this would cut too deeply into your profit margins, thus necessitating careful calculation. However, if you appear aloof and uncaring when it comes to your consumers, they’ll never become lifelong customers who generate lifelong value, thus necessitating sensitivity. Finally, lack of transparency is asking for a public relations nightmare, as collecting consumer insights to generate value, later on, can quickly turn into a surveillance scandal if you don’t know what you’re doing.

Don’t be afraid to gauge your competitors for understanding what’s in trend, but be aware of the fact that your consumer base is unique and demands a specialized approach. Sometimes, asking everyday shoppers and your regular customers for their feedback and considerations in crafting a loyalty program can go a long way, so don’t be afraid to turn to the very people you’re trying to earn a buck off. Employee suggestions are worthy of your consideration too. You can reward workers for turning a temporary customer into a lifelong source of value. Before long, you’ll find that increasing the lifelong value you generate from your consumers is perfectly achievable if you have the perseverance and access to know-how tactics needed to get the job done.