The importance of lifetime customer value is often misunderstood, it is more than just the single purchase vs. repeat purchases, but the other business benefits that it creates, which we will be covering off in this article. Here are our top 5 benefits to your business by strategically engaging customers for the long-term.
- Cost of Acquisition: You may or may not have heard of this, but if you were to amities all the time, proposals, ad spend, campaigns and salaries that it took to bring 1 customer across the line. You’d probably find it to be a much higher amount than you expected. The more longevity you can have with a single customer, the less time you will spend on the above from project to project. This is because trust will grow with every transaction.
- Customer feedback: The more familiar and comfortable these customers become, the more value they will add to your business. They will want to see you at your best and will look to add value where they can.
- Improved Customer Experience: In-term because of the above, you will create a constantly better, more effective business model to replicate the same experience for future customers.
- Your Best Advocates: The longer you are together the more often you will find these customers will naturally prefer and refer your business. They will also advocate for you in front of others, rave about how great you are and be excite others to work with you.
- Retained Business Value: If you’re considering selling your business, new business is great for growth but retained business is where the true value lies. The buyer will see less risk and a higher rate of return if you’re able to display a high number of continued long-term customers.
So, how do you track, measure, and maintain this?
We recommend implementing a good CRM to ensure customers don’t fall through the cracks. Where that’s a new customer experience or staying front of mind and delighting current customers – a good CRM can help you maintain all your relationships.
