11 Killer Strategies to Increase Customer Life Time Value
11 Killer Strategies to Increase Customer Life Time Value, Increase current life time value of current customers and scale your agency without getting new clients.
11 Killer Strategies to Generate More Revenue from Existing Customers
Bringing in new customers is not easy for a digital agency, startup, or eCommerce company, but generating revenue from existing customers is not a cakewalk. With such biting competition, most companies offer the same value, so it becomes crucial to differentiate your business from others.
How to Increase Revenue for Your Agency?
The trust factor has become a watchword in the business world as it decides customer loyalty for a lifetime. If you have grown your brand to the extent that people trust you blindly and can buy from you without thinking twice, you are already on the road to success.
So if you want to know how to maximize repeat business and generate more revenue from existing customers, here are 11 killer strategies you can implement.
1. Create a Loyalty Program
Do you know what happens to customers who don’t feel appreciated?
They leave.
When customers feel valued, they are easier to sell to. If you want to see more repeat customers, offer a reward for choosing your brand. A loyalty program is invented for the same purpose — rewarding customers for repeat purchases. Companies distribute cards or use apps to track customer purchases and rewards.
The program works on a point system, giving points to the customers each time they buy your product or services. A certain number of points is required to win a reward: a free item or a discount. The program is designed to pull the customer back to your company instead of letting them go to the competitors.
Example of a Customer Loyalty Program
Designer Shoe Warehouse (or DSW) runs a loyalty program. It uses points to reward each purchase. Customers can unlock the different tiers of rewards as they spend more.
How it works
DSW uses a seamless online system to register the points rather than any punch card. However, customers need to remember the loyalty program to make the system work. If they forget about the scheme, the scheme will no longer entice them to spend. So, DSW regularly updates their customers about the points they have accumulated and what they could earn by spending more at their store. This way, they keep their customers engaged. They also send emails occasionally to inform their customers about the status of their points. Personalization is the key to success here.
DSW conducted an email reward campaign recently, in which they shared with their customers exactly how many reward points they needed for a $10 certificate. They also updated them about other deals their customers were eligible for.
DSW won’t stop here; they go beyond reward updates and share a snapshot of customers’ interactions with the brand over the past 24 months.
DSW Email Campaign Results
It was a highly engaging and customer-centered story, which the brand used in a personalized email with rich visual elements. DSW saw the following results at the end of the campaign:
- Email open rate went up by 64%
- CTR went up by 13%
- 59% of recipients who opened the email read it for over 15 seconds
Welcoming the Returning Customer “the Lucy and Yak Way”
Lucy and Yak, a dungarees brand, has a unique customer loyalty platform that they call “Yak points.” It’s also used to encourage returning customers to their website. The imagery is used to showcase how the customers can earn points.
They use a high degree of personalization. For example, you can look at the following loyalty program example and notice the values or mood of your business.
The message says, “Welcome back, Mollie, nice to see you again. You have 150 Yak points.” Such statements immediately invoke customer loyalty and encourage them to buy more.
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2. Unlock Growth with the Right Pricing Strategy
You can adjust the price if needed, but it should align with the market situation and competition. At times, it seems that increasing prices is one of the best ways to increase revenue, but you shouldn’t do it at the cost of losing your customers or sales. You should do a market survey and see how your competitors are pricing their products to take a position about your products.
Consider increasing your prices gradually in bits rather than a sudden, sharp increase. A slight increase in prices may not sound significant, but overall, it may substantially increase the profit margins.
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3. Creatively Package Products or Services
Combining your products and services into pre-configured packages is a brilliant way to increase revenue from existing customers. It boosts the individual sales value, improving profit margins.
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Bundling of High-End Products
Treat your customer with a bundle of high-end products to entice them to switch to a “better and more exclusive package.”
A Tip for B2B Companies & Digital Marketing Agencies
You can offer retainer-based packages to eliminate common frustrations that clients face. For example, if you provide digital marketing and guest posting services, consider offering a retainer that checks and confirms that all the backlinks made through guest blogs are intact.
If any of these links are removed or the site gets penalized by Google, you will create another backlink on a site with similar domain authority for free. By doing so, your clients will trust you more and continue to use your services while boosting your cash flow.
4. Use Effective Marketing Strategies
Running data-driven marketing campaigns is another way to improve sales and boost revenue. It’s a 2-step process:
- Analyze data around consumer behavior and product preferences
- Develop targeted data-driven campaigns for specific customer segments using ad messages and offers
You can use the following channels for marketing and promotion:
- Website
- Social media
- Pay-per-click (PPC) advertising
- Remarketing (Google Ads)
- Email marketing
- Public relations
- Content marketing
- Traditional marketing through flyers, banners, billboards, newspaper ads, and word of mouth
Try Remarketing
Remarketing is a proven and highly effective way to boost conversion. Visitors who are retargeted with display ads are 70% more likely to convert on the website. Furthermore, a retargeted ad’s click-through rate (CTR) is 10x higher than the CTR of a typical Google display ad. So, it would help if you also tried remarketing ads to boost conversion and generate more revenue.
5. Stay in Touch with Your Customers
There are two ways to stay in touch with your customers —- Social media and email marketing.
Social Media
Social media pages and accounts are used to stay in touch with your fanbase. You can also use email for this purpose. Most companies have at least one social media account that updates regularly and informs and engages their customers. It’s crucial to know what your audience wants from you and build a community around it.
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Newsletters
Various companies use email marketing to remind their customers about their products and services regularly.
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You can use the following channels to stay in touch with your customers:
A. Text messages
B. Phone calls
C. Video chat
D. Other Chat Apps like WhatsApp
E. Live Streams (Q&A sessions, demos, announcements)
F. Comments on online posts
G. Live Chat on your website
H. Respond to online reviews
I. Host webinars or other virtual events
6. Offer Great Customer Support
Customer support is the backbone of any business. Yet, according to the Annual Customer Experience Impact (CEI) Report, 89% of shoppers have stopped buying from online stores after they’ve experienced poor customer service.
So, make sure that you offer excellent customer service as a business. According to the same study, 86% of U.S. adults will pay more for a better customer experience.
So, better customer service will lead to enhanced client satisfaction, retention, revenue, and extended business contracts.
7. Make Their First Purchase Special
The first impression is the last, and it’s essential to make an excellent first impression on the business. Here are a few ways to make a customer’s first purchase a pleasant and unforgettable experience:
A. Send a welcome email
Send a welcome email as soon as the customer registers on your website. Tell them why it’s beneficial to do business with you and how important your customers are for you.
B. Offer discounts and freebies
Everybody wants to be treated as someone special, and your customers are no different. So offer them a discount or a gift, so they remember you for a long time and return to you for the next purchase.
C. Mind what you say
An email should be personalized and not very formal. As an effective communication tool between you and your customer, keep it free from unnecessary jargon and practices such as “Do Not Reply” emails.
8. Find the Unmet Needs of Your Customers
In this age of ruthless competition, it’s essential to figure out a product or a service that meets people’s expectations.
To fill up the gap in the market and differentiate your product or service, you need to find your customers’ unmet needs.
If you don’t want your product to be ignored, you need to discover what your customer is looking for. Here are a few ways to identify the unmet needs of your customers to find better business opportunities.
A. Map Your Customer Journey
Identify your customers’ pain points, frustrations, and struggles and create a customer journey map. It will help you visualize different processes that a customer goes through before buying a product or service.
It also lets you know the touchpoints at various stages in the process that you can use to influence their buying decision and convert them into loyal customers. By mapping a buyer’s journey, you can also identify the problem areas in the process where a customer can get out of the funnel and becomes a lost opportunity.
Here is an infographic that explains the customer journey map:
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This infographic will help you know where exactly your customer is stuck and how you can fix this issue to push him to the next stage in the sales funnel.
B. Use Existing Customer Data
Getting first-hand customer data is not very difficult. You can compile the questions and concerns they raise about your product or services to get a host of valuable insights about that user. Look into their calls and chat logs, reviews, purchase history, and social media conversations using social monitoring tools. It will help you know the product features and services they must be looking for.
C. Listen to the Voice of the Customer (VoC)
Voice of the customer (VoC) is an important metric used by BPOs, call centers, and customer support departments in various companies. You can also know the VoC through surveys to get real-time feedback and insights into your customers’ thoughts and feelings about your products and services. Voice of the customer. VOCtrade helps you design a better product or service, increase customer satisfaction and generate more revenue.
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D. Perform Competitive Analysis
Getting familiar with your competitors and their products and strategies will also help you stay relevant to your audiences. Your competitors will not only help you with the product ideas and market segments to target, but they will also assist you with the market trends, new features to be introduced, and new market strategies to adopt.
9. Find Opportunities for Cross-Selling or Up-Selling
You can find so many cross-selling and upselling opportunities if you are ready to do some deep thinking. Then, you can communicate these ideas to your sales teams and train them to grab such opportunities without fail.
You can run targeted upsell campaigns. Apart from that, you can also run targeted promotions to existing customers. You can find your best sellers and add their variants and complementary products to them. If any of your products are selling well, combine them with other related products.
A Complete Roadmap to Earn $10k a Month Through Upselling
Here is a video tutorial by Chad Kodary, the CEO of DashClicks, the prominent white label services. Chad presents the roadmap to earn $10K a month to digital marketing agencies in this video. He also explains how to generate sales online using proven and repeatable techniques.
You can upsell several related services to your clients, beginning with a website you can create within five minutes using InstaSites, a white-label tool offered by DashClicks. The services you can upsell to your existing clients can be SEO, paid to advertise, Facebook marketing, social media postings, directory listings, and website designing.
Source: YouTube Video Tutorial: How to Make 10k a Month: Step 5-Upselling
10. Make Your Sales Channel Appealing
Infuse some energy into your sales channel to generate enthusiasm among your audiences and offer them a reason to buy. Create attractive sales collateral using bright and vibrant colors, typography, and excellent graphics. Convey a sense of urgency through your marketing messages and incentivize your sales partners and employees to make them work passionately.
11. Give Your Customers a Reason to Come Back
You should always have proof to back up your claims about your products and services. Customers need evidence and not plain claims. This proof can be customer testimonials, reviews, case studies, experts’ reviews and opinions, and endorsements by influencers and celebrities. What people say on social platforms can also be used as social proof.
Show a Demo Video
A great demo of how your product works and its features can be one of the best revenue generation strategies. Create videos for various uses of your products and services and distribute them on different social platforms.
Conclusion
Your business can potentially grow, survive or fail. A wrong step, and everything can go with the wind. Apart from the above strategies, it’s essential to listen to your customers’ demands and feedback. Your ability to listen to your customers and interact with them will differentiate you from the crowd and help you become a successful business.
With these insights, you can easily modify your products and sales strategies. These insights will also help you revamp your processes for better quality and productivity. You can also try the latest tools such as chatbots to interact with your website visitors and address their concerns.
