Enhancing the customer experience through sustainable commitments is the most vibrant step toward increased customers lifetime values
When we are evaluating something’s direct benefit, our aim is to define, analyse, and list all outcomes as well as their reasons. Customer lifetime values are no different. In order to implement a health strategy to enhance customer lifetime values, we need to define what it is, analyse its derivations, and list all the projections of its realization. Hence, our methods and tools are not different than the one we had used for other forecasting and analysing missions. Difference here is that customer lifetime value enhancing is beneficial for both parties. That is, both customer side and organization side have their fair share of benefits through correct increasing of customer lifetime values.
First things first, definition of customer lifetime values must be comprehended. It is a key element in the customer experience enhancement programs as well as any strategy to increase volume of the organization. Customer lifetime values is a measurement where you evaluate the customers’ value to your organization in an unlimited timespan. That is, rather than evaluating the value of first purchase, CLV, customer lifetime values, helps you to keep track of metrics that are beneficial to analyse cost per acquisition. Since keeping existing customers costs less than acquiring new ones, analysing customer lifetime values is a great way to enhance your expansion.
Another thing is to retain existing customers longer to increase customer lifetime values. As we have mentioned, retaining existing customers is cost-effective. In addition to above methods, organizations use churn prevention techniques to tackle with bouncing. Loyalties and rewards are number one tools to retain the existing customers in the organizational border so that customer experience and customer lifetime values increase correlatively.
Third and last tactic is rather simple yet effective as well as others. Lowering cost to serve to customers is a simple solution to enhance customer lifetime values. Halting marketing in areas where it is ineffective and offering low-cost channels for customers are main tools to achieve cost reducing. However, a good market analysis must be implemented to start cost- reducing as it can backfire easily, where a volume of existing customers can be lost.
Therefore, considering the customer lifetime values as both current and future potential, organization can gain more profit by only giving attention to their customers’ behavior in both short run and long run. Thus, planning campaigns according to above mentioned methods solves the issues. However, all those methods are easier said than done. In order to achieve them, a data-backed analysis must be undergone so that all said machine learning, artificial intelligence, and clustering can effectively do their job. As making prediction and acting accordingly is not an option anymore, it is a necessity.
