The Power of Receipt Validation: How it Helps Build Your Customer Understanding
Every day, businesses receive a steady stream of transactional data, including purchases, product information, and customer details. Receipt...
Understanding how to create a lasting relationship with your customers is a key part of running and growing your business. A key step is to understand and evaluate the Customer Lifetime Value (CLV) which represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
By recognizing this value, it better helps further determine multiple things:
It is very easy to determine what the CLV will be:
CLV is the average value of a purchase X number of times the customer will buy from you each year X average length of the customer relationship (in years).
An example of this would be:
Some who lives alone and goes grocery shopping every week:
$75 per week X 52 weeks in a year X 3 years= $11,700
Someone who lives with their significant other and goes grocery shopping every week:
$175 per week X 52 weeks in a year X 3 years= $27,300
Based off of these 2 CLVs, you should be investing in the second shopper.
There are 4 main takeaways that you gain when calculating your CLV and trying to assess where to invest your company’s money:
While knowing how to track the CLV is important, it is also crucial to understand how to continue to build and grow the customer lifetime value
1. Have great customer service
Showing your customers that you are with them throughout every step even after the purchase builds that trust and relationship for future encounters. Follow up with the companies through social media posts or newsletters to let them know new deals or rewards offered that they might be interested in being a part of.
2. Create a loyalty rewards program to encourage customer loyalty
Having programs such as receipt validation gives customers an extra reward and sense of security when choosing your company. Loyalty and rewards programs help businesses attract and retain customers by providing valuable incentives and benefits that encourage them to become repeat customers. Integrating programs such as receipt validation allows customers to earn extra rewards for their purchases and gives them a sense of satisfaction when choosing your company. Loyalty programs foster trust and security between brands and customers, which ultimately leads to better customer lifetime value.
3. Hear what your customers have to say
Giving your customers the opportunity to tell you what they believe works and what needs some improvement is a way to build a better relationship with them. If there is an issue that could cause your consumers to not want to return then it is important to fix that in order to prevent them from turning to a different company for their business.
4. Stay in touch with your customers
It is important to show long time customers that they are still as involved and valued to your company as new customers. By continuing to reach out to them it will give them an opportunity to reach back out to you and maintain that relationship.
Now that you have a deeper understanding of Customer Loyalty Value, how will you move forward? Brandmovers can help you! Get in touch with us today to see how we can help you cultivate deeper and long lasting relationships with your customers!
Every day, businesses receive a steady stream of transactional data, including purchases, product information, and customer details. Receipt...
In today's highly competitive market, it's not enough to simply offer a loyalty program; it needs to be integrated seamlessly with other tools and...
Discover the world of advergames, an interactive and exciting form of video games designed to promote products, services, and brands. Created by...