Six Mistakes That Could Detract From Your Customer Lifetime Value

Posted on: 24 January 2018

Business owners need to pay enough attention to customer lifetime value to make the most of the effort they put into acquiring customers.

Improving customer lifetime value means increasing the amount of sales and positive exposure you get from each customer. The following are six mistakes you need to avoid to ensure the highest possible customer lifetime value for your company.

1. Focusing too much on the short term

When you're working on acquiring customers, it's important to start long-term relationships rather than one-time sales.

By being honest, giving customers opportunities to provide feedback, and working as a team with your customers, you can develop relationships that will demonstrate high customer lifetime value and keep your customers coming back repeatedly for your products and services. 

2. Being too predictable

It's a good idea to surprise your customers once in a while with special gifts and offers. Everyone likes to be pleasantly surprised with services and products that are relevant to them.

If you're too predictable in the content and product/service offerings you provide, customers may grow bored and start to look elsewhere. Try to mix things up as often as you can and brainstorm special gifts you can send customers that will appeal to them. 

3. Failing to listen to advice from customers

Give your customers a voice, and they will appreciate it. Ask for feedback from customers. Also, make sure you take good advice that's offered. Engage in customer outreach, and keep as many communication channels as you can open between you and your customers.

When customers feel like they're being heard, they are more likely to come back for more. 

4. Neglecting to cross-sell and upsell

When you make a sale, you're giving up a golden opportunity if you're not also taking the sale as an opportunity to cross-sell and upsell another product or service. Keep clients informed on other product offerings that are likely to appeal to them, and you'll probably see more sales coming in in the near future. 

5. Not differentiating your company from competitors

Never forget that there are many other companies out there vying for the attention of your customers. You can be more attractive to customers if you make a point of setting yourself apart and showing specifically what you do better than the competition. 

6. Never recognizing customers

Customers appreciate being recognized. If you have a customer who has provided some particularly useful information or devotion, recognize that customer and show your thanks.

You may want to also arrange competitions and contests to distinguish particular customers. These efforts to recognize customers show your community how much interest there is in your company and its offerings. 

By performing a customer lifetime analysis, you'll be able to assess which areas you can improve upon to help grow your business.