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Bury St Edmunds social media and marketing expert Kim Morrison offers tips on 'expanding the lifetime value of your customers'


By Kim Morrison


Do you spend most of your time and marketing budget looking for new customers rather than nurturing your existing ones?

It’s important not to forget your existing customers as these few marketing statistics illustrate:

  • Acquiring a new customer can cost five times more than retaining an existing customer.
  • Increasing customer retention by 5% increases profits 25-95%.
  • The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
Kim Morrison (7199448)
Kim Morrison (7199448)

You probably know each customer has a lifetime value in business. This is called the CLV, customer lifetime value. It translates into the amount you can earn on any one customer as they enter your product funnel and make their first purchase from you.

Understanding your CLV can help you determine how much you should spend on marketing, and also help you determine ways to expand your CLV.

Become More Customer Centric

Customer service is one of the most important parts of any business. Even if you have the best products or services in the world, if your customer service is lacking you won’t last long. If you want repeat buyers, treat your customers with the importance they deserve.

Build Targeted Upsells

With technology you can easily create an automated system to build upselling into your buying process. For example, you can do it in the shopping cart, an offer at the till point or you can do it through follow-up emails.

Create Logical Cross-Sells

A cross-sell is a just selling a different product to a current customer. It should relate to your audience, but it doesn’t have to relate to the first product you sold them the same way an upsell does.

Be Responsive

It’s imperative that you set up a system that makes you seem super responsive to your customers. Whether that is a ticketing system, a 48-hour answering policy, or open office hours doesn’t matter. You need to be perceived as very responsive to keep your customers happy.

Over Deliver

Every product or service that you deliver should be better than your customer expects. Though you won’t please everyone all the time, you can aim to over deliver. If a customer is unhappy, you need to over deliver with your solution to fix their problem.

Create a Referral Programme

Let your customers earn money or points by recommending you to other people. Often, when people can earn enough money to support their buying habits, they’ll be more likely to spend money with you. It’s a win-win all round.

Stay Connected

Find ways to stay connected with your audience, such as social media, email, teleseminars, and webinars. The more ways they can connect with you, the happier they’re going to be and the more your CLV will expand. You do need to keep this relevant to them and not just bombard them with messages!

Develop an Inner Circle

One way to expand your CLV is to provide a fee-based inner circle that certain customers can join. It can be on a private forum or even be run as a private Facebook Group.

Nothing is more important in your business than your customers. The more you can study what they need and find a way to deliver it to them, the longer they’ll stick with you. But, you have to keep creating products to keep those who’ve bought from you interested and wanting more. You also have to deliver exceptional service and quality so they get past the first product they buy from you.

BREAKING NEWS

Facebook

German Regulators Order Facebook to Limit its Data Tracking Systems: German regulators have ordered Facebook to stop sharing data across its apps, which may have a significant impact on its ad targeting capacity. The German Federal Cartel Office has found Facebook to be abusing its market power by combining data from Facebook, Instagram, WhatsApp and third party websites. As a result, the FCO has ruled that Facebook will now have to seek explicit consent from German users to collect and combine such information.

Facebook Adds New Groups Features, Including Expansion of Mentorships: As part of its latest Communities Summit, Facebook has unveiled a new list of updates for groups. The four updates include Post Formatting, which will soon provide group admins with the options of variable text sizes, bullet points and block quotes; Brand Collaborations to offer relevant deals and/or partner with professionals for more specific industry insight and assistance; Improved Group Communications, and Expansion of Mentorships and Subscriptions.

Facebook Page Admins Will Now Be Able to Respond to Instagram Messages from Page Inbox: Facebook has quietly taken another step towards the unification of its messaging apps which will make it easier for businesses to manage their direct communications from both Facebook and Instagram in one place.

Facebook's Updating it's 'Why Am I Seeing This?' Ad Info with More Specific Detail: Facebook will roll out a new ad info panel, with more specific insight into ad targeting as part of its ongoing measures to provide more data transparency.

Facebook Rolls Out Messenger 'Unsend' Feature to All Users: Facebook is now rolling out its 'Unsend' option in Facebook Messenger to all users after testing it in selected regions.

Instagram

Instagram Rolls Out IGTV Previews in Main Feed: Instagram announced that IGTV previews will now appear in users’ main Instagram feeds, which makes it easier to discover and watch the latest video content from people you follow. Creators can now share a 1-minute preview of their video on their profile when they upload a new IGTV video. Users can then tap on the preview to watch the full video on IGTV.

Instagram's Developing an Account Linking Feature to Simplify Multiple Account Management: Instagram is working on a new option that would enable users to link multiple accounts to a single login. The new option would give Instagram users a range of account management options, which would extend beyond simply being able to more easily manage additional, business-related accounts.

Instagram Will Now Remove Any Self-Harm Related Images as Part of New Safety Measures: Instagram has announced new rules around images related self-harm as part of measures designed to protect vulnerable users.

LinkedIn

LinkedIn Launches its Own Variation of Live-Streaming Called 'LinkedIn Live': LinkedIn is launching its own version of on-platform live-streaming, starting in the US. LinkedIn Live will give regular members and businesses additional, immediate capacity to share from conferences, product announcements, conduct Q&As and more.

Pinterest

Pinterest Expands eCommerce Potential with Automated 'Shop the Look' Pins: Pinterest is expanding its on-platform shopping potential with the addition of automated 'Shop the Look' Pins, which will connect images with products for purchase.

Twitter

Periscope Allows Broadcasters to Invite Guests Into Live Streams: Twitter is rolling out a change to Periscope that allows video broadcasters to include up to three audience members in a live stream. For now, Periscope is only allowing audio call-ins from the audience, but Twitter is looking to bring video sharing to this feature and may also add audio call-ins coming to the main Twitter app in the future.

Twitter Suspends Spammy Follow-Unfollow Services: Twitter cut off API access to services that rapidly follow and unfollow people on the platform in a ploy that gets some users to follow back and inflates an account’s follower count. Not only is this practice a violation of Twitter’s API rules, but it also generates notification spam, degrades the user experience, and dilutes real human interaction on the platform. These apps include ManageFlitter, Statusbrew, and Crowdfire.

Twitter Reports Increased Revenue and Declining Daily Active User Numbers in Q4 2018: Twitter reported Q4 revenues of $909 million (up 24 percent on a year ago) and diluted earnings per share of $0.33 with a net income of $244 million. However, Twitter has now slumped to 321 million monthly active users, falling short even of estimates that were expecting a decline.

YouTube

YouTube Reaches Nearly 2 Billion Monthly Users in Q4 2018: In its Q4 2018 earnings call, Google reported that YouTube has more than 2 billion monthly users and the number of channels with more than 1 million subscribers has nearly doubled in the last year. Additionally, the number of content creators on YouTube earning between $10,000 to $1 million from YouTube AdSense grew more than 40% compared to a year earlier.

YouTube Expands Two New Content Discovery Features: YouTube is making it easier for users to discover and engage with their next favourite brand, video, or creator on the site with two experimental features that are currently being tested among creators and brands.



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