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Increase your customer lifetime value

Category Ecommerce, Insight

Updates 01st Mar, 2019

Reading Time 2 minutes

Martyn King

Martyn King

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Increase your customer lifetime value

Man Using Credit Card to Pay an Online Transaction on a Laptop

Did you know it costs five times as much to acquire a new customer as it does to retain an existing one? (source: Econsultancy). So why wouldn’t you focus on keeping your current customers as well as try to acquire new ones? Yet a staggering 44% of companies focus their resource towards acquisition vs. just 18% that have a retention focus (source: Smart Insights). Customers can easily be retained if you focus on a few of these top tips!

It is important to understand the Customer life cycle. Typically, these are the phases that we go through when finding and completing a purchase.

  • Research
  • Education
  • Purchase
  • Post-purchase

The post purchase phase is the critical phase where you can capture a repeat purchase. Here are some quick and easy tips on how to do this:

Top tips:

1. Send a ‘Thank you’ email.

This is a small and cost effective way of showing a customer that you appreciate their purchase- no matter the size of the company. Within this small email, you can add other items of stock to entice them into another purchase with you. For example perhaps your customer brought a dress- you could send a thank you email, and add in purchases with shoes and a bag.

2. Upsell and cross sell.

Just before your customer is about to check out with their purchase, entice them with small low ticket items that could be useful to them, statistics show that 38% of shoppers are likely to purchase additional items when showcased to them at the checkout (Source: Citeman)

3. Offer discounts and perks.

When you have captured a customers email address, (GDPR compliant of course ?) why not send them exclusive offers to make them feel extra special? This could range from 10% off your next order to free shipping for your next order. The idea is to give them an offer they cannot refuse as repeat customer has a 60-70% chance of converting.

4. Make leaving a review really quick and easy.

Leaving a review for your business, takes valuable time out of a customers life, therefore the best pay to do this (without having to entice them) is to make it as quick and easy possible. Try and gather quantitative data that can be used creatively. A short survey with multiple choice answers should do the trick!

 

If you have any questions about the top tips we have raised or fancy a free chat about some ideas give ross.collins@fuelcommunications.com a shout!

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