Increasing a customer’s lifetime value can boost profits, but many organizations miss the mark when it comes to implementing strategic tactics to improve LTV. Staying on budget while simultaneously growing ROI and LTV requires precision and dedication. You need new and innovative ways to raise your customer lifetime value and push your company’s marketing strategy into the future.
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Based on the four stages of customer acquisition—Find, Buy, Ask, and Advocate—brands can raise customer lifetime value by focusing on interconnected tactics. To get you started, we’ve outlined four such tactics here. Once you’ve mastered these, move on to our in-depth customer acquisition ebook.
1. Create Customer Profiles and Journey Maps
The best marketing strategies start with a comprehensive blueprint, including a customer profile and a journey map to chart how customers shift from new visitor to lifetime user.
A customer profile helps you determine how to best reach your ideal customers and keep them engaged within your buying funnel. This profile identifies the essential details you need to know about your customer: the content that matters most to them, the problems they want to tackle, and how they approach the buying and support processes.
Build customer profiles that identify the essential details you need to know about your customers, from the problems they want to tackle to how they approach the buying and support processes.
To build customer profiles, your first step is to identify the type of people most likely to want and need your product or service. Focus on three to five different types of ideal customer, building a broad description of each:
- What they do for a living
- What they value
- How they interact with content
- What their objectives, goals, and pain points are
- What about your company would appeal to them
- How they approach research, purchasing, and support
Once you have customer profiles, pair them with a customer journey map. These maps are a visual guide to how you obtain customers, from the initial research phase to purchasing. Creating a journey map can also help you determine any obstacles the buyer may face when researching your product or service, as well as the time a customer needs to feel ready to purchase and how they approach customer support.
2. Create Dynamic Content and A/B Test It
Content marketing isn’t going anywhere. In fact, 91% of B2B marketers use content marketing to reach customers, and 86% believe content marketing is a key strategy. Once you capture your ideal customer in a profile and journey map, you can align their buying cycle with your content marketing to develop more tailored and timely content.
The key word in successful content marketing is dynamic. Your content should adapt and change based on your customers’ behaviors, interests, and preferences. You have distinct types of customers, each of which has different needs and goals. The more tailored your content, the more likely consumers are to respond and continue to engage.
The key word in successful content marketing is “dynamic.” A/B test your content to adapt to your customers’ different behaviors, interests, and preferences.
While you may not be able to tailor unique content for every customer profile on all marketing fronts, A/B testing makes it easy to send out varied messages to your customer groups and see what they respond to best.
There are a lot of simple tweaks you can make to test your content:
- Adjust the subject lines in newsletters and email campaigns
- Change the headlines on ads, landing pages, and blog posts
- Try different calls to action in different locations
- Swap out button colors and other design elements
- Update sales copy and product descriptions
- Use different images
Through consistent A/B testing and reporting, you can identify the types of messages and visuals to which your customers respond. In turn, you can improve conversion rates and increase instances of repeat customers.
3. Optimize Care Content
Boosting LTV isn’t just about the first purchase; you need to nourish lifetime customers, and the best way to retain them is by providing them with stellar customer service. For many customers, support starts online with your customer care content—or lack of it. If you want your customers to stick around after they’ve purchased, you need to provide effective service content to immediately address any questions or concerns they have.
If you want your customers to stick around after they’ve purchased, you need to provide effective service content to immediately address any questions or concerns they may have.
Take a look at your customer service and FAQ pages. These pages should be as welcoming and personalized as sales pages, as they can essentially serve as a type of sales page for returning customers.
There are a few quick ways you can optimize your customer care content.
- Take a look at how easy—or difficult—it is to find your company’s contact information. Make sure phone numbers, emails, and help center links are easy to locate on your website. Consider adding a chat function that can proactively engage with customers. This gives them a way to ask questions and get them addressed immediately.
- Clean up and simplify the messaging on FAQ pages. Using information from your sales team and website data, determine what questions your customers most often ask. What information do they need to solve a problem or find a solution?
- Tailor your content to address the essentials in a simple and easy-to-understand format.
- A/B test your support content and update it based on your results.
Support content can reduce costs of service calls, support new sales, and increase customer retention. Optimize this content to provide the best support experience, and you’ll increase the LTV of your hard-earned customers.
4. Encourage Online Reviews and Customer Feedback
Gathering reviews from customers is essential: 95% of consumers aged 18–34 actively read online business reviews, and 91% trust online reviews as much as personal recommendations. To capitalize on that trust, pair your dynamic content and customer care information with testimonials from your current customers.
Reviews can help convince potential buyers, lend your company more authority, and help you identify customer trends. Together, these can help you improve your ROI and LTV.
91% of consumers trust online reviews as much as personal recommendations. Pair your content with reviews and feedback to convince potential buyers and lend authority to your company’s offerings.
Whenever you can, encourage customers to leave reviews.
- After every customer service email or chat, send out feedback questionnaires or requests for reviews on social media, your website, or other platform.
- Following a purchase, send an automated message that requests feedback from the customer on the product or service they purchased.
To encourage more engagement, don’t forget to respond to every online review. Thank reviewers for praise and offer a helpful solution or apology to any negative criticism.
If you’re still struggling to receive responses from customers, consider offering incentives, such as the opportunity to win a prize, free product, or other gift. Many businesses enter customers into drawings for a gift card or product discount when they leave feedback.
Connecting the Touchpoints to Increase Customer Lifetime Value
While implementing these tactics individually is beneficial, connecting them into a seamless strategy will offer a more intelligent customer experience. With a strategy for boosting LTV in place, you can make the most of your marketing dollars and improve customer experiences—a win-win for everyone.
This is just the beginning of an effective customer acquisition strategy, though. Download our Customer Acquisition Ebook for your next steps.