In traditional systems, earning loyal customers would take years of excellent service, good product, and trust-based relationship. But ever since businesses shifted to online platforms, the paradigm of gaining loyal customers and ensuring customer lifetime value has changed greatly.
In today’s time, there is a lot of competition among businesses. Brands try every trick in the market to attract customers such as heavy discounts, aggressive marketing, one-day deliveries, etc. This practice does get customers, but it affects customer loyalty and brings customer lifetime value to a minimum.
SocialEpoch is a WhatsApp CRM that is helping businesses gain customer loyalty and increase their customer lifetime value. But before we get to the how of it, let’s first understand more about customer lifetime value.
What is Customer Lifetime Value (CLTV)
A customer lifetime value is a value that the customer brings to the business throughout his/her lifetime. It takes into consideration the entire log of the customer, starting from the first purchase to the last.
Here is how it is calculated.
CLTV = (Average Order Value) x (Total Number of Repeat Sales) x (Average Retention Time)
Average Order Value: The average value of the purchase that the customer makes.
Total no of repeat sales: The total number of times the customer has placed an order.
Average Retention Time: The average duration the customer stays with your brand.
A low CLTV means that your business is spending more than it earns per customer, while a high CLTV means that the business has earned more than what it had spent on acquiring holding on to the customer throughout their lifetime.
Why Businesses Need To Improve Customer Lifetime Value
In order to acquire a customer, a business has to spend a certain amount on lead identification, lead nurturing, and conversion of lead to customer. They continue to spend on marketing and customer service in order to retain them for a long time and get more business from them in the future.
By investing in multiple ways to acquire and hold a customer, a business aims to recover the amount and gain profit from the customer’s lifetime value. A retained customer has a much higher chance of making purchases in the future as compared to a customer with a one-time purchase. Moreover, acquiring a new customer costs up to 5 times more than retaining an existing one.
So, by retaining a customer for a long time, a business can gain more value from it. It will reduce overall acquisition costs and increase long-term profitability.
8 Points on how to boost Customer Lifetime Value via SocialEpoch
WhatsApp proves to be one of the most convenient ways to reach out to customers. The reason being, most users are already available on the platform and it allows businesses to connect with them. Using this as an advantage, SocialEpoch provides a WhatsApp API-based SCRM which makes it easy for your business to manage day-to-day customer interactions as well as carry marketing and sales promotions through it.
Here are some of the ways SocialEpoch helps in boosting customer lifetime value through WhatsApp:
1. Personalized customer experience
Engagement on a one-to-one basis is a great way to increase customer lifetime value. With SocialEpoch, you can engage in personal conversations with your customer to understand their needs and expectations. Based on the input, you can work on improving customer experience which will help you in increasing customer lifetime value.
2. Updates and Notifications
Sending frequent updates about your product or service will help in keeping your brand and your products fresh in the mind of your customers. By regularly sharing the latest product updates and discount offers, you can increase the chance of convincing them into buying your product. This will help in customer retention and increase customer lifetime value.
3. In-time response
With SocialEpoch, you can let your customers directly contact your customer care via WhatsApp texts or voice calls. This will allow you to provide in-time responses and resolve issues quickly. For many customers, their customer care experience helps them decide whether they would like to make future purchases from a brand or not.
4. Two-way communication
WhatsApp-based SocialEpoch allows two-way communication between businesses and customers. This builds trust among customers that they can reach out to the business in case of any query or product issue. It gives customers a medium through which they can get all their queries and concerns addressed immediately. As a result, it leads to better sales and longer customer retention.
5. Higher engagement
By sharing personalized and high-quality content, you can ensure higher engagement from your customers. From informational posts, fun games, discussions regarding an upcoming product, or a fun group chat. SocialEpoch can ensure that your customers love to hand around with your brand and establish a long-term relationship.
6. User Persona Based marketing
With SocialEpoch, you can create unique user personas for each customer and base your marketing approach for each customer accordingly. This will help in targeting your customer’s buying decision more precisely. Regular updates on a new arrival or and offers that they might show interest in can help in getting them to stay with your brand for a longer time.
7. Post-sale services and feedback surveys
For a business, their role does not end with selling a product. They need to handle post-purchase order anxiety upfront to make the customers feel that their purchasing decision was right and that you would take care of the issue in case things go wrong. With WhatsApp, you can easily collect post-sale feedbacks and provide further assistance in the form of product setup, demonstrations, etc. This can give a major boost to your customer loyalty and customers would love to make future purchases with your business.
8. Encouraging Customer loyalty
If customers are rewarded for being loyal customers, they will stay with the brand or business longer. Using SocialEpoch, you can reward your loyal customers with a shout-out on your official WhatsApp status. This makes your customers feel appreciated and will encourage them to stay with you for longer. You can also make them feel special by sending them personalized gifts or offering special discounts. time
As a business, one should never overlook the sentiments of their customers. By addressing their concerns, interests, and needs, businesses can find a loyal customer base and can retain them for a very long time. SocialEpoch can play a vital role in boosting customer lifetime value and can help in providing supreme customer care services and beyond!