Growing your business is all about customers. Specifically, the acquisition of new clients and the retention of long-time customers. For those faithful clients who’ve been with you a while, knowing how to improve customer lifetime value (CLV) is a critical element of solid business growth.
But what exactly is CLV, and how can you use it to boost your bottom line? TeleDirect knows a thing or two about how to increase customer lifetime value – after all, our business process outsourcing (BPO) services provide exceptional call center solutions for small, medium and large businesses everywhere.
What is CLV?
Simply put, customer lifetime value is the total net profit your business makes from one customer since day one. Thus, the customer lifetime value of a prospective customer is zero. For customers who’ve used your products or services for years, the customer lifetime value formula is pretty straightforward.
For example, let’s say you have a lawncare service. One of your customers pays $75 per month, 9 months per year. That’s $675 per year. If that customer has used your lawncare services for 10 years, the customer lifetime value of that client is $6,750. Obviously, keeping regular clients for years and decades is a great way to improve your bottom line.
It’s in your firm’s best interest to master this customer lifetime value formula. While many businesses focus on acquiring new clients through lead response and other methods, it helps to optimize CLV for the clients you already have.
Let’s look at some ways on how to improve customer lifetime value.
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How to Maximize Customer Lifetime Value
Here are five proven ways to boost customer lifetime value:
- Offer high-value upsells. From premium subscriptions to additional services – using our lawncare service example, perhaps snow removal “upsell” in the winter – there are always opportunities to keep your clients satisfied. After all, they’re already familiar with what you do best. But what else can you do? That’s the key in converting upsells and additional services. As part of TeleDirect’s outbound solutions, we offer intuitive, business-friendly telesales and upsells to increase customer lifetime value.
- Automate your client communication channels. In other words, offer a live chat service. More than 3 in 4 businesses want live, real-time interaction. Getting a live chat platform up and running will only bolster your customer lifetime value initiatives – and this application can be fully automated or staffed with live agents…TeleDirect offers either (or both) solutions!
- Gather feedback – and use it wisely. In order to maintain clients over the course of years – or even lifetimes – it’s not just important to ask how they’re doing, but how YOU’RE doing! One way to do this is with a professional surveys & feedback platform, and that’s exactly what TeleDirect offers for our call center customers. Keep in mind, the idea of actionable feedback extends far beyond the world of contact centers. Ask your customers about everything, and use this data to improve your overall business model!
- Get personal. To expand on point #2, it helps to have empathy when required. For call centers, live agents offer a warm, personalized alternative to automated chatbots. To cite just one example, everything from personalized in-app messaging to customizable UX/UI design is a surefire way for software companies to personalize their products & services. The result? Optimal customer lifetime value.
- Bump prices up – carefully. “You get what you pay for” is one of the oldest business adages. And it’s true, particularly when talking about customer lifetime value. Faithful customers are always willing to pay slightly more for reliable services, as long as they’re still getting value & results. Before updating any pricing, it helps to have solid market research. TeleDirect offers valuable business intelligence and real-time data to help in this regard.
Contact TeleDirect Today – Learn How to Improve Customer Lifetime Value
CLV is important for your business. And your call center plays a key role to ensure your long-term customers continue to use your products and services. If your business or non-profit needs professional assistance with the customer lifetime value formula, or if you require targeted upgrades for your call center – regardless of your industry or business sector – TeleDirect has the solutions you need.
Just fill out our customer contact form, and our customer lifetime value experts will reach out with CLV strategies for your business. Or, call TeleDirect for CLV expertise directly at (800) 776-1081. Whatever your business requirements, we’re here to ensure you have everything necessary to offer customer lifetime value for existing clients, along with the ability to bring on new customers! Thanks for visiting TeleDirect.
Smitha is the CEO and CFO of TeleDirect. As the CEO of TeleDirect, Smitha is responsible for running all facets of the business and has a proven executive management track record. Smitha obtained her license as CPA in 2007 from the California Board of Accountancy. With more than 15 years of experience in business, finance and accounting, Smitha is also responsible for implementing financial controls and processes. She is also responsible for organizational improvements and streamlining business operations that drive growth, increase efficiency, and bottom-line profit.