As we approach the end of the year, it makes sense to think about keeping those customers your team has worked so hard to land this year, and building CLV – customer lifetime value.
We’ve long heard about the costs of keeping clients vs. obtaining new ones. The common belief is that it’s 50% easier to sell to existing clients than to new prospects. According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. Gartner Group says that 80% of a company’s future revenue will come from just 20% of its existing customers.
Research reveals that deepening connections is the key to customer retention. A survey by Braun Research shows that nearly 6 in 10 U.S. small business owners (SBO) said establishing relationships with customers was the primary driver of repeat customers. No other responses in the survey came close to this, with “low prices” and “prime location” tying for second, with just 11% each.
So while the evidence to keep existing customers happy and engaged is seemingly overwhelming, just how should a company increase customer lifetime value? Here are five tips:
There’s no doubt that investing in relationships to build CLV increases loyalty and maximizes revenues and profitability. What do you do to drive CLV for your business?
Email marketing can be a key driver for creating CLV. If you need to expand your email list to connect with your ideal prospects and drive more leads for your business, consider giving BizFACTZ’ B2B marketing data a try. BizFACTZ takes the hassle out of email list growth, and allows you to reach targeted contacts with precision and accuracy. Click here to register on our site and use the offer code “INTRO” at checkout to receive a 20% discount on your first order.
About the Author
Paula Chiocchi, president and CEO of Outward Media, Inc. (OMI), is a marketing industry veteran whose mission is to help businesses realize their full potential by effectively reaching their target audiences and converting more prospects into customers. Outward Media, Inc. (OMI) is in business to help organizations expand their reach, find new customers and enter new markets. OMI wrote the book on multi-channel marketing data, and provides fresh, accurate email data to drive business growth and success for Fortune 2000 firms and mid-sized companies worldwide.
Contact us today to drive stronger CLV for your company: 1-310-274-5312, www.outwardmedia.com.