Having a steady stream of customers is fine, but how do you ensure customer loyalty for a lifetime? Customer Lifetime Value (CLTV) measures just this. By examining customer value – not just in the present day, but over a period of around 20 years – businesses can better retain regular, loyal customers, and fine-tune / customize their products and services accordingly. Measuring CLTV can also help businesses identify profitable and high net-worth customer segments, which can further enable them to better organize their marketing investments in the future.
CLTV is all the more important in the field that we work in – the business of support services – where we have to strive harder to retain customers in an ever-growing and highly competitive marketplace.
Customer loyalty plays an important role in helping businesses constantly adjust to the volatilities of financial and economic shifts, as well as in guaranteeing a steady stream of customers. It also plays a key role in ensuring continuous recurring revenues – which is imperative for a sustainable and profitable business. Further, using consumer data – specifically for CLTV – businesses can tweak and sell their products and services in a suitable manner, based on their customers’ specific requirements / spending propensity; thereby ensuring greater customer retention rates.
Measuring CLTV can also help businesses segregate their customers into various categories. High-spenders can be determined, streamlined and targeted accordingly; while regular returners can be provided with added incentives, promotions and loyalty programs to ensure that they are constantly rewarded for their decisions. Furthermore, business models can be fine-tuned to adjust to the various fluctuations that may take place when running any business, enabling them to weather the fierce storms that could occur during times of economic and financial uncertainty.
Of course, retaining long-term customers is a challenge in itself; however, ensuring that customers are made to feel special by giving them professional and personalized attention can go a long way in ensuring a long-term relationship. What’s more, this bodes well not just for an individual but for their connections too as we all know that a good word, either through face-to-face interactions or on social media, can go a long way!
At CSS Corp, we understand the positive effects of calculating CLTV and we can help businesses segregate their end-consumers based on their propensity to spend. By doing this, we customize our support services to serve their needs accordingly. This has ensured that we regularly score highly on the customer experience scale and the satisfaction index. This has also helped us remain true to our core mission statement of 100% referenceability.