How to Maximize Lifetime Value and ROI
Numerous studies have shown that it is 6-7 times more expensive to acquire a new customer than retain an existing one (and maybe even more), and according to research done by Bain & Company, increasing customer rates by 5% has the potential to impact profit by 25%-95%.
You want your customers to be so delighted after making a purchase that they return to you again and again. Even more importantly, delighted customers often tell their friends and family about their favorite businesses. So how can you go about using your online marketing strategies to please your customers?
“How can I delight our customers after purchasing so that they purchase again and tell their friends?”
Many business owners spend so much time acquiring
Customer lifetime value (or CLV) is the projected profit a business may expect to gain from a single customer over the course of their entire future relationship. The higher the average CLV, the more potential each client means to your bottom line.
Here are factors that influence a consumer’s CLV in regards to your business.
By increasing CLV, your marketing dollars go much further because ultimately the client acquisition cost stays the same but the return on investment is higher.
So now that you’ve used some strategies to interact with your customers online, but are they “delighted”? Customer delight is signified by clients not only being satisfied with your product or service but feeling joy or satisfaction from coming to your business specifically. This shows that not only are you doing a great job, but your company is going above and beyond customer expectations and actually creating joy in someone’s life.
You might think creating delightful experiences for your customers is too difficult or even impossible to guarantee. However, many companies are succeeding at creating a culture of delight both online and in every customer transaction. Many times it comes down to identifying what’s “good enough” and then going above and beyond that to shatter the customer’s expectations. The customer loyalty that happens as a result contributes directly to growing your business.
There are three factors that you need to focus on when trying to create delightful experiences for you customers: Innovation, Communication, and Education.
All companies, no matter large or small, can create a culture of delight for their customer base. For example, Target has created an exclusive program for a specific group of frequent customers who have consistently shown interest in writing online reviews. Customers are offered a choice of several free items (coffee machines to clothing) a few times a year in exchange for honest product feedback.
As for smaller businesses, independent coffee houses and cafes are known for creating daily delightful experiences for their regulars. When baristas give excellent customer service and are able to offer discounts, word-of-mouth spreads quickly. Pair this with online customer appreciation and “check-in” coupons on social media sites, and you’ve begun building a social media presence that resonates with today's consumer. This is how delight turns into additional new business.
If you need some ideas on how to create delighted customers, here is a list of ways to exceed your customers’ expectations.
Here are some specific ways you can encourage your customers to help you grow your business. The amazing thing is that by creating a delightful business culture, your customers will want to tell everyone about you.
Customer delight is a simple tool for any business owner. Using internet and social media marketing to create this delight can be a fun and lucrative way to expand your business and keep your existing customers. Infusing your business with a culture of delight will not only keep your customers happy but your employees as well. Best of all, happy employees and delighted customers can result in business growth and success.