How to Double CLV: 7 Methods From WooCommerce Sellers
Published September 26, 2022.
Customer Lifetime Value (CLV) measures how much time customers will spend with you over their lifetime, therefore tying in with customer loyalty—increased loyalty leads to increased CLV which ultimately leads to increased sales.
Your e-commerce customer acquisition cost (CAC) is also closely linked to CLV, because you have to incur costs to reach and retain your customers. Together, these two metrics can provide a balanced view of your profitability because they're focused on long-term value and success.
Below are seven methods you can implement to increase your CLV from WooCommerce sellers.
» What is the ratio between CLV and CAC? Read this guide on calculating customer behavior
1. Create Engaging, Value-Adding Content
No one has time to read pages and pages of content anymore. If you want to catch your target market's attention, your content must be engaging and strategically add value. Sift out all the unnecessary information and craft the remaining nuggets into short, sharp copy that tells your customers what they need to know, when they need to know it, without them having to look for it.
This is especially important when it comes to your social media posts, newsletters, and emails. Every time you put content together, you need to ask yourself:
- What is the purpose of the content?
- Will it stand out from my competitors?
- Is the message clear?
Customers will start to trust your brand, and CLV will increase.
2. Implement Cross-Selling & Upselling Strategies
Upselling is selling a superior, more expensive version of a product that your customer already owns or is in the process of buying. Alternatively, cross-selling is selling products that are related to a product your customer already owns or is in the process of buying. These strategies are beneficial because:
- You're not searching for new customers—you're increasing the sales you receive from your current customers
- Overall customer satisfaction will improve—customers feel you're taking their needs into consideration by offering a variety of better-quality products
The key is to not be too forceful. By offering value for money—a real deal that's hard to resist—you'll build customer loyalty and in turn CLV.
» Want to implement an easy upsell strategy? Discover how one-click upselling can boost sales
3. Optimize Your Customer Service
There's nothing more frustrating for a customer than inefficient customer service. Let's say you offer an upsell opportunity and it's a great deal. Your customer is caught hook, line, and sinker. They get to the payment page and there's a glitch in the system that stops them from processing their payment. They try to contact you but there's no answer, or the agent doesn't know how to help them. It's one way of putting a customer off for life.
Make sure your customer service agents are always contactable, highly knowledgeable, and can offer solutions. It builds trust, shows that you're a professional business, and builds your customer loyalty and CLV.
4. Enable the Provision of Customer Feedback
Customer feedback is an essential element in the customer's sales journey. There must be a platform where they can voice opinions and feel that their opinions are taken seriously. Not only that, but customers can give you valuable insights into substandard products or website glitches, which you may not have picked up on. Therefore, you must make sure that:
- The channel you offer for feedback is professional, user-friendly, and up-to-date.
- The customer's feedback is acknowledged—there's nothing more unprofessional than getting no response at all.
- You analyze the feedback regularly and make changes accordingly.
Customers who feel important, and not cast aside once the sale has concluded, have a better chance of providing a higher CLV because they become loyal.
5. Develop a Subscription Model
A subscription model is a sales strategy that requires regular monthly payments from your customers for specific, pre-defined products and services. It must be a win-win for both you and the customer to be effective.
A subscription model is very effective when it comes to increasing your CLV because you know how much you can expect from customers and those customers are locked in for a period of time. It's an opportunity for you to show your customers how professional your brand is because they get what they want, when they want it, with no hiccups along the way—building trust and loyalty to your brand.
6. Reward Customers With Loyalty Programs
Everyone loves a freebie or a good discount. If you show your customers that you truly appreciate their recurring business by implementing a solid loyalty program, you will keep them coming back, which will increase your CLV in turn.
» Unsure how to start a loyalty program? Explore different apps for easy setup and implementation
7. Offer a Referral Program
Similar to loyalty programs, referral programs must offer value to the customer to encourage them to engage. However, referral programs hold an additional benefit in that apart from keeping your current customers, you may gain many more. The details of the referral program can be changed and tested over time until you find what works best for your e-commerce store.
The bottom line is that if you treat a customer well, they will treat you well in return. Customer loyalty is a long-term investment that will continue to pay off and is worth devoting resources to. These seven methods will help you to reap the rewards of catapulting your CLV and seeing your bottom line soar.