How To Increase Lifetime Value Of Clients.
Acquiring new clients can be costly and time consuming, we all know this.
So once you have acquired a new client, increasing the lifetime value can rapidly transform the profit margins of your business.
An increase from $1500 lifetime value, to even just $2000 with 8 clients could take you from $12k a month to $16k a month, a 33% increase to your baseline.
But imagine the possibilities if you doubled your average lifetime value with your clients…
So how can we do this?
Raise Prices - This is a quick and easy way to increase lifetime value. This does not necessarily mean raising the price for your current clients, but maybe for all the new incoming clients.
Upselling - Profit is made through bolt ons when the customer is in the flow of buying. What bolt ons, or extras can you offer once a new client jumps onboard.
Ascension - If you lose your clients, it is your own fault for not matching their needs sooner. What can you build or create that your current clients need, so that they can continue the journey they are on without having to search for alternatives.
Frequency - Are you continuing to make offers to current & past clients? Are you giving them enough reasons to come back? Can you create a method of reminding them to buy from you, through postcards, newsletters and posts. Can you also turn your product into a subscription, so they repeatedly do business with you?
Reactivitation - Can you run a reactivation campaign.
Compile a database of past clients, (remove bad customers who you do not want repeat business with).
Create a strong offer to bring them back. A gift card, coupon or free offer.
Apply a strong call to action.
Send an email with the headline, ‘We Miss You’.
Extra - ask why they have not returned….
These are a few tips which you should be reflecting on, and looking to implement within your business.
This could dramatically change your business for the better.
Hope this helps. Here for a better you, in life and in business.