Your customers are worth more than what they purchase from your store today.
If you can retain them as a customer over time, you can gain more profits for your business.
This week, Andrew and I have a meaty, and sometimes conflicting, conversation on customer lifetime value (LTV). We start by breaking it down with the basic definition and then share higher level strategies for how you can increase customer lifetime value, as well as some tactics you can implement today.
Enjoy!
Episode Highlights
- 4:02 How to measure customer LTV (and why it’s difficult to do).
- 5:52 The first question Andrew has his client’s answer when they ask about LTV.
- 7:39 Calculating retention rate: why you can only do it if you have a subscription business, and what to look for if you don’t.
- 8:37 The 3 metrics to increase in order to improve LTV.
- 10:17 What Native Deodorant is doing during their checkout process that’s driving increased customer LTV.
- 13:08 The benefit of a subscription business and why you should consider it, even if you don’t think that model is right for you.
- 18:01 Andrew’s view on how lifetime value can increase by finding out clients motivation points.
- 19:04 Why Austin cautions against giving using surveys and VIP customer discounts as a way to increase LTV.
- 20:52 The number one thing Austin now believes is the best option for increasing LTV.
- 22:21 How utilizing value-based lookalikes and bid optimization on Facebook can increase customer lifetime value.
- 23:24 A Facebook tactic for increasing LTV that most people don’t know exists.
- 24:33 A trend Austin believes is going to be very successful for companies in the future.
- 25:22 Additional Facebook and email tactics for increasing LTV.
- 28:25 Why cost of acquisition prices are going up and what you can do about it.
- 31:41 How to boost LTV on the next re-bill using Recharge.
Links And Resources
- Wilson Hung’s Blog Post on Customer Lifetime Value
- Episode 178: You’re Treating Your Customers Equally (And It’s Costing You Money)
- Native Deodorant tweet
- Dynamic Product Ad on Facebook
- ReallyGoodEmails.com
- ARPU
- Recharge App on Shopify
- Foxwell Digital
- Brand Growth Experts
- Review or subscribe on iTunes
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