At the end of the day, customers are the lifeblood of a business. No matter how good your product or service, without customers, you simply cannot have a successful business. Calculating the customer lifetime value (CLV) is popular in many industries as a way to articulate and quantify the customer service experience, the customer relationship with a business, and the customer acquisition process.
CLV helps business owners think about how to optimize their strategies towards obtaining, developing, and keeping quality customers for life. The following are 7 ways that customers become more valuable over time to a business, and how a business should attempt to reach and attract these types of customers to their business.
Customers Become More Valuable When…
If you are a business owner, filling in the rest of that sentence can be paramount in attracting and maintaining quality customers over their lifetime. While some business owners may complete that sentence with “…they buy as much of our product as possible,” or “…they tons more for our product,” or even “…they have loyalty to our business and brand,” these are not the truest answers. The following are 7 ways that customers truly become more valuable over time.
1. …they give us new and innovative ideas.
When you have a customer giving you the answers that they need to solve their problems, that they are willing to spend money on, this is like liquid gold for your business. Take the time to always ask your customers what they want to see from your business that you do not already offer.
2. …they promote us on social media platforms.
The truly loyal customers that are the most valuable are super-fans. They are the ones that will buy anything you put out first and scream your praises to anyone who will listen on Instagram, Facebook, Twitter, TikTok, and Pinterest. This is free advertising that is better than any paid advertising because it is organic and authentic. Take time to reward and acknowledge these customers for their efforts.
3. …they reduce costs.
If customers buy in bulk or are on a monthly payment plan for a subscription service, this can reduce overall cost for a business. However, buying in bulk or purchasing a subscription plan is only done by customers who are fiercely loyal and committed to a brand.
4. …they want to collaborate with the brand independently.
Just like the super fans that promote your brand on social media, many customers want and relish the opportunity to work with a brand simply because they believe or like the product. Use these customers to find out exactly how to make your products better or make new products they would enjoy as much.
5. …they are the first to try our new products.
Every business will launch new products from time to time. The most loyal of customers will be the first ones to purchase these products, write reviews on blogs and on YouTube, and promote your brand and new products independently.
6. …they agree to share their personal data.
In a time when personal data is protected by most consumers, there are some that are willing to share that private information with brands they care about. This personal data is invaluable to understanding and ascertaining different demographics and who purchases and uses your products.
7. …they actually introduce their own customers to your products.
While many businesses, influencers, and bloggers will receive affiliate income to promote products, the true reward is when a business or influencer introduces their own audience or customers to your products because they believe in them so much. Take the time to seriously connect with these customers as they are not only loyal consumers but have a platform to increase your customer base exponentially.
Taking the time to manage customer value and determine who your most valuable customers are will launch your business into a different league, filled with truly raving fans filled with brand loyalty.