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4 Quick Ways To Increase The Lifetime Value Of Your Current Customers

Brian Greenberg
Brian Greenberg is a multi-faceted entrepreneur currently serving founder and CEO of True Blue Life Insurance, Inc

In today’s market, the customer dominates the playing field. As business owners, we must develop a winning strategy or else fall a few yards short of the goal line. So, how do we get ahead in this game? To win, we deliver outstanding customer service. With this approach and a few more specific actions, you will earn repeat business.

Why am I so enthusiastic about repeat customers? Because they spend more. I was able to double my business thanks to repeat customers. In the business my father and I started, over half of our buyers were repeat customers.

Focusing on repeat customers creates a sustainable business. But how do we tap into this valuable potential? Here are my top four ways.

Keep In Touch Through Email

Despite evolving digital media, email remains one of the most effective marketing tools. A well-run email campaign can bring a healthy return on investment. I recommend using mail management software such as ActiveCampaign or MailChimp to create a database. Focus on delivering engaging, personalized email content.

Tens of thousands of your customers may receive the same email. But you can still deliver the perception of one-to-one communication. The sender's name, addressee, subject line and other email components allow for that experience.

And more so than any other form of advertising, email is also highly measurable. I use metrics such as open rate, click-throughs and sales funnel goals to refine our email marketing strategy between projects. With these reports, I can monitor which email features receive the best results.

Give Coupons And Run Sales

Coupons and sales have been around for a long time. They provide your customers with a tangible value. Even better, they bring urgency to the purchase.

I recommend you send coupons via email. Avoid direct mail. Many people consider direct mail to be junk mail, and it’s expensive to distribute. Email coupons make the process simple for your customers. Create coupons that are easy to print or scan directly from the customer’s phone.

Coupons also provide some remarkable data. Install a tracking code on your coupon when you send them out. You can then use Google Analytics to track the revenue generated by every coupon campaign.

Can there ever be too much of a good thing? Absolutely. Space out your coupons so your audience doesn’t feel inundated with offers. If you present something too frequently, it loses its unique appeal.

Establish A Loyalty Program

One of my favorite methods to keep customers is loyalty programs. I’ve always made using them a marketing priority for my businesses. With a loyalty program, you show customers that you care by rewarding them for continued patronage

You must first install a loyalty program function on your site. Your e-commerce software likely already has this capability, but you may also try third-party software. I recommend RepeatRewards, TapMango or PrefferedPatron.

What is the best loyalty program for you? The answer depends on your business. Let’s consider a few options:

  • Points program: Customers earn points for each purchase. They use these points to get discounts, free shipping or other rewards. Ensure the process is simple and easy to use for the customer.
  • Tiered system: In this system, the value of the reward rises as the customer makes more purchases. I currently use the tiered system with my business. I’ll give a 3% discount starting with the customer’s second purchase. I gradually increase that value to a 10% lifetime discount by the customer’s tenth purchase.
  • VIP benefits: Everyone loves VIP treatment. I’ve found many customers will gladly pay a nominal monthly fee for discounts or other perks. A VIP program can be effective. Consider the success Amazon has achieved with Amazon Prime.
  • Games: You attract return buyers when your turn the shopping experience into a game. Many businesses have made use of games. For instance, McDonald’s launched a successful monopoly game. If you go with games, make sure your customers are able to win enough to encourage their return.

Focus On Relationship Building

Your business success relies on authentic customer connections. Focus on relationship building with your customer base. Your customers are not just order quotas. They are your friends, family, employees and neighbors.

More than anything, extraordinary customer service earns trust and loyalty. Amazon’s customer service comes to mind as best in the business. CEO Jeff Bezos states, “We start with the customer and we work backward.”

To foster relationships with your customers, I recommend you communicate early and often. With my life insurance business, I send out a birthday email for each of my customers every year. Respond to reviews, swiftly resolve customer complaints and keep the lines of communication open to nurture those relationships.

I see too many businesses continually spending on customer acquisition while they neglect their current customers. From my experience, the fastest way to increase revenue is by working the relationships you have already built. Follow the steps above to quickly increase your revenue by focusing attention on the assets you already have.


