There are numerous metrics that business owners need to constantly check when running an e-commerce outlet or another online-based industry, primarily since everything is over the internet nowadays. For instance, they must keep track of the number of sales each day, ROI from marketing campaigns, and details of new customers, to name a few key things.
Along the same lines, gauging customer lifetime value is equally crucial as it will allow businesses to understand how much they stand to gain or lose from a particular customer with accurate data study and assessment. The process considers all their online behavior, including past orders, cancellations, and other vital actions, turning them into an actionable metric that measures their brand loyalty.
Optimizing these values can help your business in numerous ways, some of which are explained below.
Have a better onboarding process
The ever-increasing global online retail sales have made it essential to have an ergonomic and impactful onboarding process that impresses new customers enough to retain them for a long time. Automated emails are a significant element in this process to guide new users through every step while including current sales, discounts, and other lucrative deals.
Giveaways, engaging content, and Q&A sessions are other fantastic ways to make your clientele feel appreciated and valued, ensuring their loyalty.
Stimulate re-orders and frequent purchases
You should aim to initiate re-orders as often as possible by engaging your customers with lucrative discounts and deals. But that may not be possible in specific cases where people buy some items only for a limited period. For example, folks who regularly buy baby diapers from you will likely stop requiring them in a couple of years.
In such cases, aim to initiate frequent purchases when lifetime value has a set period. Study cart abandonment rates and their reasons and send email reminders to buy the products they usually do. You can also include a limited-period offer or coupon to make the email more engaging.
Keep existing customers happy
Making your site mobile-friendly is essential as an increasing number of people worldwide are using smartphones to shop for everything from groceries and gift items to furniture and homes. Besides focusing on mobile internet users, you can also ensure your loyal customers are happy by sending them gift cards and coupons on their birthdays and other special occasions.
Another way to connect with them deeper is to ask for honest feedback, assess it and implement the changes they seek whenever viable to your business. Also, it will tell you a lot about their product preferences, helping you develop better ones in the future.
Use AI to predict loyalty and value
The best way to ensure excellent customer lifetime value is to predict it using sophisticated AI-powered tools that can quickly identify the ones with the most profit potential. The technology studies existing behavior and accurately uncovers future buying patterns based on this data, allowing you to implement changes when necessary. It can help you align customized promotions with an in-depth understanding of customers’ potential value, helping you scale operations faster and boost customer retention.
Furthermore, reliable platforms are easy to use since there are no complex spreadsheets and other challenging elements, enabling you to create and deploy LTV (lifetime value) models without hassles. Lastly, you can streamline the tool with social media platforms to develop accurate target audience segmentation.