Do you know that increasing Customer Lifetime Value maximization can build a sustainable company model? We’ll go over nine proven strategies to help you increase customer lifetime value for your Shopify stores and foster a community of loyal customers.
What Is Customer Lifetime Value?
Customer Lifetime Value (CLV) determines how much a customer is worth to a business throughout their relationship. It’s not just the first buy; it’s how they usually spend their money. It’s made up of three essential ingredients:
- Average Purchase Value: This is the average amount of money a customer spends each time they shop.
- Purchase Frequency: This is how often your customers come back for more.
- Customer Lifespan: This is how long a customer sticks around.
Knowing your CLV makes prioritizing customers easier, allocating resources to attract new ones, and satisfying current ones.
How To Increase Customer Lifetime Value?
Increasing your Customer Lifetime Value is as simple as transforming one-time buyers into devoted patrons. Here are two ideas for how to make that happen:
Option 1: Based on the CLV formula:
To increase customer lifetime value, you can rely on the CLV calculation formula in the image below. It includes uses 3 main factors: average purchase value, purchase frequency, and customer lifespan.
Read detailed instructions for calculating CLV in this article: Top 10 Customer Loyalty KPIs.
Option 2: Based on the product-led growth method:
Beyond the CLV calculation, product-led expansion could prove a very effective strategy. Imagine creating products that are so fantastic that consumers are dependent on them! The results would be longer customer lifetimes and more frequent purchases.
- Enhancing customer experience with great service, easy returns, and unique experiences will make your customers feel important to you.
- Provide exceptional value by offering products or services that solve your customers’ problems and exceed their expectations.
We will give more detailed instructions on how to increase customer lifetime value for Shopify stores in the next section.
How To Increase Customer Lifetime Value Of Your Shopify Stores?
This part will show you nine Shopify customer lifetime value (CLTV) strategies from improving the onboarding process to listening to customer feedback
1. Improve the Onboarding Process
Your onboarding procedure presents your brand’s initial impression to a consumer. According to Userpilot’s data, if a complex onboarding procedure exists, 74% of consumers will go to a rival. On the other hand, a flawless onboarding process may increase client retention by up to 86%.
Here’s how you can make your onboarding extra special:
- Create a welcome email series:
Send a warm greeting, introduce yourself, and offer a special discount or gift. Then, follow up with emails filled with helpful tips, product recommendations, and exclusive offers. This is the most common way big and small brands, including Ulta Beauty, do it.
- Offer tutorials and guides:
No one likes feeling lost. To help customers navigate your store and products, you should provide easy-to-follow tutorials, guides, or FAQs.
- Personalized recommendations:
You can use customer data to offer tailored product suggestions. This makes them feel special and increases their chances of finding something they love.
- Ensure easy navigation:
A user-friendly website is essential for a great onboarding experience. Make sure your store is easy to navigate and has clear categories and search options.
Look at Allbirds’ Shopify website; it’s easy to navigate with two tabs labeled “Shop Men” and “Shop Women,” and there’s a vertical menu on the main page.
2. Provide Value-Packed Content That Keeps Customers Engaged
A study by Siege Media found that 62.3% of content marketers said that making interactives was part of their strategy. For long-term customer interactions and higher customer lifetime value, you need to make material that people want to read.
Here are some content marketing for Shopify stores:
- Educational content:
You can share tips, tutorials, or how-to guides related to your products via blog, video,… For example, Beardbrand, a men’s grooming brand, invests heavily in educational content. Their blog post “5 Tips for an Epic White Beard” is a treasure trove of information for their target audience.
- Storytelling:
Share your brand’s story or customer success stories to connect with your customers on a personal level. People love stories, and they help build a stronger connection.
Patagonia, for instance, is very skilled at narrative. They urge consumers to have a good influence and fight environmental preservation from their platform.
3. Offer High-End Customer Service
3.1. Provide 24/7 Support
Round-the-clock being there for your consumers is a lot like playing Superman. That you will be available to them at all times, day or night. Their sense of worth and appreciation is enhanced by this.
- Automated chatbots: These helpful machines can answer common questions and give quick answers 24 hours a day, 7 days a week.
- Outsourced customer service teams. If handling a team that works around the clock is hard for you, you might want to hire expert customer service providers. They know how to answer questions quickly and properly.
- Self-service tools for everyone: Make sure your website has a thorough Frequently Asked Questions (FAQ) part and helpful tips. This gives customers the power to discover solutions on their own.
3.2. Offer Live Chat Support
How to make your live chat support extra special:
- Quick response times:
Your customers will be happy if you answer them more quickly. According to Comm100 data, 71% of customers believe a prompt response from support staff may significantly enhance the customer experience.
- Personalized interactions:
You should use the consumer’s name and purchase history to provide suggestions and help that are specifically suited to them.
- Proactive engagement:
Don’t just wait for customers to contact you. Provide help in advance, such as making product recommendations for your Shopify store or responding to inquiries before they are made.
3.3. Offer Multi-Channel support (chat, email, phone)
Being accessible on several platforms makes it quite simple for customers to contact you these days. You may think of it as having several entrances to your business, allowing people to locate you wherever they may be.
Here are some popular channels to consider:
- Social Media: Respond to inquiries and messages posted on social media sites such as Twitter, Instagram, and Facebook.
- Phone Support: Sometimes customers prefer a personal touch. Offering phone support shows that you care.
- Email is still a reliable way to communicate.
The Airtable’s email in the picture below is sent to a person called Matt. The message tells Matt that he has chosen not to change to Airtable Pro and goes on to explain why.
This email from Airtable ends with a request for Matt to reply if he has any queries or would want to continue using Airtable Pro for another week. Additionally, it requests comments on Matt’s decision not to upgrade
3.4. Ensure Quick response times
There’s nothing worse than waiting, particularly for a response. Fast response times work like sorcery to win over satisfied consumers. Just picture the wonderful feeling you get when someone promptly responds to your inquiry. It is the sort of experience you want to provide to your clients.
For quick response times, you can use AI-powered customer support platforms. According to HubSpot’s blog, generative AI saves service personnel almost 2 hours daily by responding to consumers rapidly. Here are some powerful tools that can help:
- Ada specializes in AI-driven customer service automation, handling inquiries through chat, email, and social media.
- Kore.ai offers a comprehensive platform for building and deploying AI-powered chatbots and virtual assistants.
Technology can help people move faster, but cases that need care and understanding or have tough problems should always be handled by real people. It’s often best to use both AI and staff to give the best customer service.
Training your staff. This will help your staff find ways to answer them even faster next time. If you’re busy, answer the most critical questions. This shows customers you care about their problems.,
4. Expansion Revenue Using Upsell And Cross-Sell Strategies
Upselling and cross-selling aren’t just sales tactics; they’re strategies to significantly boost your customer’s lifetime value. They transform one-time shoppers into loyal customers with a higher average order value when done right.
How do we make it happen?
First, we should consider personalized marketing for Shopify stores. The email below is an email marketing campaign for Shopify stores that sell kitchen products.
The email above is for Ryan, who just bought a nonslip cutting board from the business. The shop y is trying to sell Ryan more by offering two other items he might like: a BBQ grill brush and stainless steel tongs.
Another strategy, similar to what The Body Shop does, is to bundle similar goods and sell them at a discount.
Finally, highlight upgrades and add-ons, premium versions of products with additional features or benefits.
5. Implement A Loyalty Program
Business loyalty programs are revolutionary. A staggering 83% of consumers say they are more inclined to make another purchase from a company that offers a loyalty program, according to Yotpo research. Through benefits like special discounts and freebies, these programs increase average order value (AOV) while also improving client retention.
Building a successful loyalty program involves these key steps:
Step 1: Choose The Right Platform
Shopify offers many solutions for loyalty programs. The Shopify loyalty app that is best for your company may be found by reading the article “10 Affordable Loyalty Programs for Businesses“.
Step 2: Define Rewards
Once you’ve chosen the perfect loyalty program platform, it’s time to design rewards that truly excite your customers. Think of rewards as the golden carrots that keep your customers coming back for more.
Read more: How to Set Up the Best Loyalty Program for Your Ecommerce Store?
Step 3: Promote Your Program
Your loyalty program’s value depends only on its scope. You may share the information via email, social media, and in-store signage, among other outlets. Take inspiration from Levo; they sent this email to their members explaining their loyalty program.
Also, engaging in campaigns and promotions can create excitement and encourage participation.
6. Share Your Product Roadmap And Product Changelog
Trust is built via transparency. When customers are informed about your projects, they develop a stronger connection to your brand. So, how can one make the most of Shopify’s customer journey mapping features?
- Regular updates about upcoming features and improvements by sharing your roadmap on your website, blog, or social media.
- Detailed changelogs: When you release new features or make changes, provide clear and easy-to-understand changelogs. This helps customers understand the value of the updates.
- Engaging customers in the development process to share their thoughts and suggestions. This shows you value their input and can improve your product even more.
Sharing your product roadmap and changelog can work wonders for your customer’s lifetime value.
7. Provide Fast And Reliable Shipping
Over two-thirds of worldwide customers expected delivery within 24 hours for online purchases across categories. Besides, four in ten expected delivery within two hours.
So, how do we provide fast and reliable shipping?
First and foremost, work with trustworthy couriers like UPS, FedEx, and DHL at all times.
You may also provide a range of shipping options like overnight, expedited, and standard. Consumers might so choose the pace that most fit their needs in this sense.
Lastly, make sure your consumers understand delivery timings by providing them with an accurate arrival time estimate for their items.
By collaborating with reputable shipping companies and providing quick delivery choices, you can enhance the shopping experience for clients at your Shopify store and encourage repeat business!
8. Implement Subscription Services
Subscription services are like having a loyal friend who keeps returning for more. They provide a steady stream of income and foster deeper customer relationships.
Here are three easy steps that will show you how to set up subscription services for your Shopify store:
Step 1: Choose a subscription app:
Shopify has lots of great apps to help you manage subscriptions. Here are three top-rated options to consider:
- Shopify Subscriptions built-in option seamlessly integrates with your store, offering a user-friendly experience.
- ReCharge has many features, such as advanced control of subscriptions, customer websites, and the ability to connect to popular marketing tools.
- Bold Subscriptions is known for its intuitive design and easy setup process.
These apps make setting up different subscription plans and handling payments easy.
Step 2: Create exciting plans:
You can offer different subscription options to suit various customer needs and budgets. Think about different product bundles, frequencies, and discounts.
Step 3: Promote subscriptions to customers:
Finally, you should use email, social media, and in-store promotions to inform your customers about your subscription service.
By offering subscriptions, you’re not just selling products but building a loyal community of customers who can’t wait to see what you’ll offer next!
9. Acting On Customer Feedback
As Bill Gates said:
“Your most unhappy customers are your greatest source of learning.”
So, how do you turn feedback into gold?
- Use polls and reviews to get feedback.
- Look at the comments to get useful information.
- As you get comments, make adjustments.
- Communicate improvements to consumers.
Your customers are the key to the full potential of your Shopify stores. If you pay close attention to what they say, you can make changes that will not only make them happier but also increase customer lifetime value.
Final thoughts
By using these strategies, you’ll make more money in the short term and grow Shopify’s customer base to make money in the long term. To increase customer lifetime value, you must give these individuals great experiences, build strong relationships, and keep asking for feedback.