Last month I wrote a newsletter for my subscription newsletter clients about Customer Lifetime Value and how it controls your business. It determines how much you can realistically spend to get a customer.
The only thing limiting you increasing your customer’s lifetime values is you. Your creativity and your willingness to make it a priority. After all, you have more choices than you know. There is always going to be a way to increase CLV.
The higher your business’s Customer Lifetime Value the more you are able to create circumstances that will allow you to spend more to get each customer. This is the magic of Closed Loop Marketing. The more you can spend to get a customer the more customers you’ll get… the more it makes sense to find ways to increase CLV even higher so you make even more money and you can spend still more getting customers…
Being able to spend more to get a customer opens up new media opportunities. Media that was previously too expensive will be open to you. If it was too expensive for you it was probably too expensive for your competition so they aren’t using it. Making it much easier to cut through the marketing clutter, when you are reaching out to new customers.
On top of having more media open to you, your business can invest in better quality marketing through more testing and increased media investment which means that your response to each step will increase.
You’ll also be able to afford more follow up. Higher CLV means that you can afford to chase each lead for longer by having more follow up steps. Dan Kennedy talks about one of his students that added 6 follow up steps to his marketing and added 50% to his turnover. Higher CLV means that adding those six steps is far more likely to pay off big time and warrants you investing in them.
The single biggest cause of low CLV is customers wandering off because you don’t put a fence around them and make retaining them for life a priority. Ben and I recently did a webinar for a client where he explained 5 strategies for monetising your existing customers. But none of them will work if you aren’t building an ongoing relationship with your customers. Using those 5 strategies in your business will radically increase your CLV beyond what it is currently.
Click Here and you can read about the 5 strategies you can use to increase your CLV and how you can start building a relationship with your customer today – so those 5 strategies pay off for you big time.