As someone in charge of a business, it’s important to evaluate your progress not only to see where you stand but also to make changes and adjustments to the way you’re doing business.
Having metrics to check is especially important when it comes to your customers. And, one of those metrics that’s important to keep tabs on is called customer lifetime value, or CLV.
Maybe you are thinking, “why should I be concerned about this?” In the business world, CLV can indicate how viable your business will be beyond the short term. It can also point to how your products are fitting within the market, how much recurring revenue you can receive from existing customers, and if your brand loyalty is strong enough.
According to the Big Commerce website, you can estimate the CLV for each customer. Simply take the average order value for your customers times the number of orders you receive for a close estimate. Loosely, the larger the CLV number you have, the better you are doing financially.
There are also ways that you can affect the CLV. Taking steps to work on customer service and building brand loyalty can do wonders for this metric. Entrepreneur magazine recently shared some tips for how to make this work more to your advantage.
Personalized thanks
Larger companies may find this more difficult, but smaller companies can work more on simple ways to let customers know they are valued. Thank you emails addressed to them personally or notes in their order can be two of the techniques that can lead to greater loyalty.
Overall customer service strength
Making sure that you are providing the best possible service at every touchpoint is vital for fostering customer loyalty.
Make customers a star
Well, at least consider featuring them in your promotions, especially if they’re loyal ones who’ve had a great experience. It brings a human touch to the way you do business.
Give out rewards
Go beyond just giving incentives to draw new customers. Instead, consider discounts, early access or bonus offers for those who are already in your system.
Putting the customer first, and doing this with a great amount of empathy, will not only help with your company’s value, but it will also be a plus when you need to end their debt with your business.
At ARO, we can help you navigate all the changes that are about to take place with debt collection. We make it our purpose to reconcile debt with an approach that puts people first. Find out more about what we have to offer businesses at our website.
