Yesterday, we wrote about the importance of Customer Lifetime Value and how you can find your numbers.
We talked about the importance of lowering your Customer Acquisition Cost and working on increasing your Customer Lifetime Value.
Today, as promised, here are some of the best ways of improving your Customer Lifetime Value.
Make a Tonne of Videos
We’ve mentioned this a million times before and a whole lot of other people have spoken about it too – Videos are going to be take over almost 80% of online media for information dissemination by 2019 (source: Nielson).
So you need to start making videos about your products or services – with your customers in mind!
Most brands focus on acquiring new customers and limit their videos to helping customers make a buying decision.
Very few companies actually focus on helping customers through the product/service-ownership phase!
No matter what your customer profile is, videos are the best way to inform, educate or engage.
Here are some areas where you could make videos that increase your customers’ patronage to your business:
- Make FAQ videos: one for each frequently asked question, with a demo of the solution even. How long would that take?
- Create Guides and Walkthroughs: This is not just for new customers, but also for people who are trying out new features
- Tips and Tricks: Remember that little Paper Clip that made Microsoft Office Help a fantastic experience? When you create a memorable experience, people will remember you and keep coming back
Depending on your line of work, these videos can provide anything from customer service to free advice – it’s up to you explore the possibilities.
People buy Relationships
Most brands, or should we say Marketers, are quite scared to explore new things – even within tools that they have been using for a long time.
Personalization is a major part of the brand-customer relationship but it is rarely exploited in the way it can be.
It used to be something as simple as recording customers’ birthday and giving them a quick call on their special day.
Today, the scope of personalization has gone beyond our wildest imaginations.
However, ‘Personalization’, to most marketers and business owners, usually means addressing users by their First Name or Last Name (or both) in an email campaign.
We rarely think along the lines of breaking up our mailing list into tiny, specialized groups and creating group-specific emails.
An example could be: breaking up your mailing list based on the city they stay in, or even the part of the city they stay in, and sending them emails that are connected to places or scenes they see around them every single day.
In other words, create a connection with people at a level that’s far deeper than just the mere exchange of money and products.
Trust comes from Availability
How long does it take for you to respond to a customer query?
Think of the call-centre experience: You dial a number, jump through the automated IVR system and speak to a customer care executive.
The biggest delays would be the number of layers of the IVR you had to go through and how long you were kept on hold, waiting for your turn.
In a digital age, customer care has to be better, right?
Here’s the primary advantage that comes from being part of a digital age – customers no longer stand in line.
However, the problem that plagues customer service using modern digital tools is response-time.
While we have removed all the other hoops, we’ve added a delay that means customers have to send in their query and wait until you get around to answering their query.
All the top companies reply to customer queries within 4-hours.
The best get back within an hour!
Customers need answers as soon as possible, not as soon as you are available.
An average of 14-billion dollars worth of business is lost due to poor customer care (source: AdWeek).
You need to have a 24-hour response team, and if you think that you can get one of those auto-responders to work on your digital customer care service, you need to take one look at the mess these can cause.
Essentially, if you give people the time of the day, they will give you something back in return.
In this case, we are simply asking you to take care of your customers and give them something that will keep them coming back to you.
Put some extra effort in and you’ll see how easy it is to raise your Customer Lifetime Value with these, and some other, basic marketing actions.