Maximizing customer lifetime value is a problem that many businesses must face to make their business successful. This article will help answer questions about some essential methods of increasing the metrics.
1. What is the customer lifecycle?
The customer life cycle is a journey including all customer activities from the moment the customer realises the need to use the product to the purchase and post-purchase activities. Through customer lifecycle management, businesses can get the customer information to define it: visitors, potential customers, and high-quality potential customers. Accordingly, managers will develop specific strategies to reach the customer segments they believe will bring good results.
2. Customer lifecycle activities
So, in their buying life cycle, what activities will customers have?
Determine the target
In this activity, customers are aware of what they need to buy: Essential products, or products for daily use or products for other purposes. People with average living standards only focus on essential needs and spend on daily living standards. Families with higher incomes, they buy more expensive and luxurious products.
Ask and answer questions
Once the customer has found a brand that suits their requirements, the customer will contact customer service to find out the necessary information. In this step, staff need to answer the questions given by the customer, and at the same time, provide additional information about the product to potential customers and instruct how to use it. Answering customer questions is already a big step in maximising customer lifetime value.
Explore and search
As society develops, customers have more and more choices because of the variety of products. Besides, many businesses are competing to research, produce and sell their finished products. There are many ways for customers to be more knowledgeable about product information. They can ask for information from friends and colleagues and find out on social networks like Facebook, Instagram or Google.
Purchase
When buying, customers will make decisions based on their feelings and their beliefs. At the same time, their choice is also influenced by salesperson’s attitude.
Post-purchase
After using it, customers will evaluate the product and answer the question: Does the product meet their desired needs? Is the product quality as promised? What is the attitude and focus of the salesperson after the customer buys the product?
Propagate
This stage determines whether the customer is satisfied with the product or not. If they are satisfied, they will be more likely to recommend to friends and review products on the web or onsocial networks.
3. How to maximize customer lifetime value in stages?
Based on the main activities in the customer lifecycle, businesses can maximize the customer lifetime value in each of the following stages:
Maximize the early-stage value of the customer lifecycle
Satisfying the right target customers of the business
No company can satisfy all customer segments, as each market segment has its own needs and tastes. Unfortunately, to not waste time and money on specific customer segments, companies need to find their target customers before they have to seek them out actively. As a result, companies can provide customers with valuable information and engage them before competitors arrive.
Provide useful content
Companies can not only directly introduce the product and its benefits but also indirectly introduce the product. For example, company A operates customer care software, when introducing products to customers, the company can write equivalent content such as: Why should we use customer care software? Which software is used to take care of customers that the company prioritizes? This is important in maximizing customer lifetime value for businesses.
Advertising and brand marketing
Many products are ordinary, but with valuable advertising and marketing activities, they can effectively spread the brand to consumers and significantly increase customer loyalty.
Maximize the middle stage value of the customer lifecycle
Invest in automation
Nowadays, many sales companies use this type of automation so that customers don’t have to wait. For example, a clothing store set up an autoresponder on Facebook to retain customers during working hours.
Serving customers at any time
Serve customers whenever they need. Businesses do not need to provide direct customer support. Customers can contact sellers via the chat box on websites, email, phone of the customer service department, etc. when customers have questions or have problems with products, it is difficult to keep calm and be patient, because no one wants to waste money. This step is a valuable plus point for businesses.
Skip complicated steps when making a purchase
Many businesses face this situation. It’s a hassle-free purchase and unnecessary procedures. Finding a way to make the most exhausting step is the step for the consumer to take the money out of the wallet, not the unnecessary steps above.
Maximize the final-stage customer lifetime value
Take advantage of customer service
In this step of maximizing customer lifetime value, businesses will learn 2 main objects: potential customers and unwanted customers. The company needs to focus on marketing activities to provide product information to consumers. Hence, customers have many opportunities to take advantage of the benefits and limitations that the product can bring. And for the desired customer, finding the most tiring step is the step for the consumer to take the money out of the wallet, not the unnecessary steps above.
Please keep in touch after purchasing
Don’t aim for a one-time transaction, but remember that having a business contact with a customer after the first purchase will result in significant income for the business, as the customer may return again and again to purchase the business’s product or introduce the products to others. If they feel the attitude, civility and politeness in the relationship between the seller and the customer after making a purchase, they will come back.
Is the above information helpful to the business or not? Businesses that want to do good business must pay much attention to market fluctuations. At the same time, businesses must always care about their customers to maximise the customer lifetime value. We hope this article will be helpful for your business.
