Exploring customer lifetime value for e-commerce marketing planning
When you use the CLV matrix to determine what your business can make from your customer lifetime, the game of your e-commerce marketing just got a boost. You need to care about this important index if you must grow your business to an enviable height within a short period.
Many businesses overlook and under explore the valuable benefits of CLV metric on their businesses, but if you understand that repeat customers spend an average of 67% more than new customers, you may start taking the CLV concept to drive your e-commerce marketing as important. While old customers account for 67% of a business income and gulp less investment on marketing activities, the new customers that produce only 33% of your income gulp so much marketing investment that most businesses find it hard to continue with business in the following year.
How do you explore customer lifetime value for your eCommerce marketing strategy?
So many businesses are in total denial of the fact that today business is a blend of technology and focused customer relation. While we know that maintaining existing customers is a crucial part of our business, we tend to look elsewhere in search of new people without taking the time to plan how to understand more, our existing customers.
To bring the CLV metric into play in your business, here is what to do to explore the thinking that can boost your sales, reduce your marketing expenditure and increase your revenue.
- Divide your customers into “buckets.”
Since you have the customers, you should have enough data on them. The most interesting data you want here is their purchases data that show how much they bought and according to time. You could have the sales in gradients ranking from high to low purchases. Each ranking gradient is a bucket. You can now use this data to categorize the customers and determine how you want to get more from them by coming up with relevant value driven products.
- Create customer focus marketing
With the bucket exercise, you now know which of your customers that command the highest value in term of patronage and spending. Under this item, you want to create customer focus marketing that will sell your best product to the buckets that can give your business an “X” amount of income. What you want to do is direct your marketing to target these categories of people instead of going on a “hit or miss” marketing program.
- Build loyalty programs
After creating customer focus marketing, drive your marketing plan with tailor made marketing package such as customer loyalty program. This means instead of spending on the usual PPC campaign, sending a mail informing your old customers of a new loyalty program where they stand to get more benefits for their purchases will mean more sales for your business.
In exploring the CLV strategy, you need to come to terms with the fact that the more of your old customers you can get into your sales loop, the more money for your business. You can then use the same ladder to attract new customers through referral push where your old customers become your salesmen.
Additional Reading: The Science Behind eCommerce
— High Risk Holdings (@HighRiskHolding) 23 de junio de 2017