>CLV

Brand Loyalty

Brick and Mortar Brand Loyalty

Mobile Wallet Apps. Social Wifi. Have you heard of them? If you are a retail location you might seriously want to consider them. Client lifetime value is one of the most important things to consider..

Currently:

  • Operating costs are rising (rents, wages, etc)
  • Client acquisition costs are rising and conversion is quickly diminishing as
  • Competition grows

Business Troubles In Omaha SEO

Retaining existing customers, getting them to spend more. This is the key to a long-lasting business. Now with the acceptance of mobile apps and desire for customers to utilize their mobile devices for EVERYTHING, there is a simple solution.

Leveraging the internet and web apps is crucial for local businesses. Especially those in Omaha Nebraska.

The statistics on mobile usage and wifi are astounding! Customers clearly WANT wifi and those businesses that offer wifi clearly experience a rise in sales. Most businesses consider wifi as a ‘very important’ service offering.

Its apparent that apps and technology can aid those entrepreneurs who want to increase their business’ success. But we are not all tech savvy or know how to develop apps for our own business. And developers are expensive! A unique proprietary solution is super expensive for a mom and pop location.

So where to go? What to do about it?

business growth bridgeport seoOur Lead Loyalty System is The Answer To Local Businesses in Omaha NE

We are able to quickly and effectively transform your free public wifi into a powerful lead generation and loyalty system. Do you want to:

  • grow your customer base
  • develop and nurture existing customers
  • increase the frequency of transactions
  • increase the price of transactions

Did you answer yes to these?

Retail Locations Around USA and in Omaha

The answer is a simple package we are finalizing. The NeoConex Loyalty program.  We are already implementing something similar in Albuquerque, only the social wifi offering, learn more here.

Contact us for more details and be sure to visit our pages soon. They are being developed now to properly highlight the benefits to local business owners in Omaha and around the nation.

Best Omaha SEO Company | Neovora SEO Expert

Omaha SEO Company

2016-11-29T22:53:58+00:00 October 9th, 2016|Client Retention, CLV|0 Comments

Fresno SEO and Client Lifetime Value

Internet Marketing & Client Lifetime Value | Fresno SEO

If you’ve followed us this far down the Fresno CA SEO Expert series, great for you! We are now covering client lifetime value and how to to maximize this number. Getting the most from every business relationship is essential to your business’ growth!

If you’re just tuning in, this is #5 in the series, and you might be best starting from the beginning. These blog posts walk you through the steps that have been outlined by our business and leaders in SEO.

The process for sales is clear cut, especially when doing so on the internet. It doesn’t matter if you are a company in Clovis or anywhere really. This stuff works! The internet marketing sales process is as follows:

  1. Attract Prospects
  2. Convert Visitors
  3. Close Leads     
  4. Impress Customers
  5. Grow Business

SEO Expert and Local SEO Partner

ride the wave of marketing on the internetThis post covers the final step how to grow your business. We will be explaining and covering client lifetime value. This metric is the lifeblood of all large businesses who seek to grow their business without attracting new clients, adding new products, or changing a single thing other than how they deal with clients.

CLV is the total value that a client is worth over their lifetime. This means that the CLV of a mortician’s client will be the one time funeral cost. The client lifetime value of a hairdresser will be every hair cut over the relationship x cost of a cut and style.

Find the metric this way:

  1. How long does a client STAY a client on average? (in years)
  2. How much does the client spend per year on average? (per year)
  3. Multiply these two together and voila! CLV.

Your goal as a business owner is to increase this metric. It can be done in two ways.

  1. Increase the frequency with which your clients go through a transaction.
  2. Increase the average price of each transaction.

This ensures that you are able to increase the transaction cost with each client, while simultaneously making each transaction more frequent. This can be done with several methods.

  • Consider providing free services to your current clients. Giving them a product for free that might induce them to purchase an accompanying product or service.
  • Provide a discount or cash incentive plan for clients that bring a certain number of referrals.
  • Track and analyze your clients’ behavior to know exactly when you can offer upgrades or additional services.
  • Test your prices and see what optimizes your product revenue. Remember sometimes lowering some prices will ensure that clients buy more often.
  • Consider add ons to your current product offering. Scones or a mint with that Starbucks coffee? Sure. Branded floor mats on a new Chevy Silverado? Sure. UP-SELLS!!
  • Use email marketing to stay in contact with customers, offering up sells, offering new products based on their recent behaviors.

Neovora | Lead Generation Through Digital Marketing

In addition to these, other ways are to upgrade transaction prices and improve sales would be to increase the amount of time you spend with each customer. Customers are still expecting stellar interactions with their business professionals. Depending on your average transaction price, this might or might not be a possibility. Simple tactics to improve customer satisfaction could be:

  • GO OVER THE TOP with customer service. Call them back after you’ve finished the transaction and ask if everything is ok. Ask if they need any assistance or to say thanks for the purchase.
  • Deliver on your promises. Set clear expectations from the beginning of the relationship.

Big businesses track CLV and monitor it closely. At a certain point, many businesses find it hard to acquire new clients, and maximizing the value of each client is the only way to grow. If you’re in the E-commerce space, this blog by Kissmetrics has good information for tracking and analyzing CLV.

Connecting with each client and measuring their buying habits is what aggressive companies do. It may take a dedicated staff member but it more than pays for itself! Be sure to check out our other posts on Client Lifetime Value to learn more in-depth strategies.

Was this post helpful? Visit the other posts in the Fresno SEO Company series! If you enjoyed this post, you can also watch it on Youtube in the form of a video blog post!

Grow Business in Fresno CA With CLV

Fresno SEO Company

Be sure to get your free website analysis before we start to charge for it! The audit is a great tool for analyzing your website and its power on the web.

Click Here For Your Free Website Audit

2016-10-30T18:19:51+00:00 June 8th, 2016|CLV|0 Comments

Client Lifetime Value For Business Growth

Growing Business with CLV | Neovora Marketing Consulting

This is the fifth post in a series of blog posts that help businesses in Albany NY with their internet marketing efforts. Client lifetime value (CLV) is a valuable tool in your business arsenal. As a top search engine optimization company and Albany SEO Expert, we know how to leverage these tools to operate as the most powerful lead generation channel.

CLV measures the total value per client over the full length of the business relationship. Just read here to see what Forbes has to say about the importance of CLV. Check out the video below which is a video blog for this CLV seminar! Check out our other Youtube videos also:

Client Lifetime Value Tips | Neovora SEO Albany

Albany SEO Company

Strategies to increase CLV are used both before and after the sale. Before the sale, you are expected to reiterate to your prospects just what they can expect during each transaction and over the length of the relationship.

As a New York SEO Firm, we deal with getting clients to your website, and into your sales funnel. This is the first step in growing your business. Digital marketing is the most powerful tool in acquiring new prospects and converting them into clients.

Once you have acquired new clients, it is your job to raise revenue by increasing CLV. Bringing in new clients coupled with raising the average revenue per client will dramatically increase your business’ revenue. Once you have your client engaged in a business relationship, you are able to implement the majority of CLV strategies.

Lead Generation with Internet Marketing | Neovora SEO

The best way to get high quality leads that will translate into a high CLV relationship is from your current client base. Their colleagues are likely to have similar needs and spending habits. But how to go about getting referrals from existing customers?

Consider incentives that your customers will find to be valuable

You will want to identify some things that you can provide your current customers in exchange for passing referrals your way. When they send a referral to you that becomes a paying customer, what will you send them?

A free or discounted monthly payment, provide a free up-sell in addition to a typical service, consider creating a tiered membership service, or even cash them out for passing new business your way!

Create an incentive plan based on referrals

Growing CLV helps grow your businessCreate a schedule for clients that means they are hunting referrals for you. This could mean that for every 3 referrals they send, they will receive X. Once they pass you 5 referrals, they might receive 2x. This will make them into not only ambassadors for your business but also into a non-salaried sales agent.

Track, monitor, and deliver these incentives

Make sure that once you develop and implement this referral structure, you follow through by monitoring thoroughly. You need to keep your word not only to new clients but also to those clients who are acting as your ambassadors. Keep your clients happy by recording and fulfilling on your promised deliverables.

Ensure that incentive structures actually increase profitability

Remember that these incentive plans need to look good on paper and in your pocket. ROI must be positive. This means that what you give back to your referral providers needs to be less than the revenue that is generated.

Develop a communication strategy

How will you spread the word not only to new clients that you have immediate contact with, but also old customers who you haven’t spoken to in a while? This is a great reason to get into your email marketing database and start to get that engine fired up.

Neovora Website Analysis and SEO Experts

For more info on CLV or SEO, visit the other pages on our site. In order to better understand how you are currently being viewed by Google and other search engines, take advantage of our free website analysis.

If this post was of help to you, be sure to visit the other posts in our Albany SEO Company series!

This is a great value that we can provide for free because we have access to dozens of SEO tools. These tools are used by us to start working with our new partners’ sites. We can offer you a glimpse of how your internet marketing campaign is being ranked by Google.

Click Here For Your Free Website Audit

2016-10-30T18:19:54+00:00 June 6th, 2016|CLV|0 Comments

Leverage Your Current Business Assets to DRAMATICALLY Improve Client Value

Leverage Current Business Assets to Dramatically Improve CLV

The past 10 years or so have seen a dramatic increase in competitive products, services, and sales channels. In addition to that, advertising costs have gone through the roof, compounding the financial vice that has continued to squeeze businesses all over the world.

We know it, we felt it, and we accepted it!

So how do you fight to win?

The knee-jerk reaction to increased competition is to decrease prices.

Have a sale and sell your products and services for less than your competitors! But this is a downward vortex that trains your prospects and customers to continually shop price instead of value.

Price is only an objection in the absence of value.

Now, we’re talking about increasing your lead conversions…which seems like an obvious way to increase profits. Well, not if you are decreasing your prices in order to convert more sales.

I want to show you how to leverage your current customers to help you increase your lead conversions.

Passive and Active Referrals

Increasing referrals is the best low-budget method of bringing in pre-sold, highly-qualified leads that convert amazingly well for your products and services.

You have assets right now you can use to increase your customer's lifetime valueWe are firm believers in leverage. If you are a small or medium business nowadays, you don’t have the time, money, or resources available to scale and grow your business. So it’s absolutely critical to seek out new ways to leverage the assets you already have.

As a growing company with locations in both Wilmington, Delaware and Round Rock, Texas, we can attest to the massive advantage of having an active referral system in place.

Your current clients are a powerful asset; studies show that as high as 80% of current customers are willing to give referrals, if asked!!!

Chances are you already enjoy some form of passive referral system. You have happy customers who have been delighted with their experience with you and your products or services, and they have tweeted, blogged, and even told their friends about your company. This is great, and they should be commended.

However, you have NO control over this method of obtaining referrals.

At some point, whether your team is made aware of it or not, some of those friends turn into prospects, and some of those turn into customers, and as a Wilmington SEO Agency, we have seen this time and time again.

In general, a referral is:

  • Easier/faster to sell to,
  • More agreeable to work with,
  • More profitable than a normal prospect,
  • Happier after the sale.

Why is that?

Well, you have an army of special sales people out there touting all the benefits they’ve received from your products, your services, and your business. And they are not doing this to receive any monetary gains. They are doing it because they care about their friends and want them to experience the same level of quality and service they have received. However, you must make sure that everyone receives similar service, equal to why your past customers are referring your business.

Referrals are the most valuable prospects a business can receive.

But why just sit and wait for them to come in? With just a little bit of automated follow-up, you can turn that passive system into an active and highly profitable system that continues to send a steady stream of pre-sold leads directly to your front door.

How to create an active referral system:

It’s actually quite easy to plan and employ an active referral system.

1. Consider some incentives that your current customers would find highly valuable.

  • For monthly subscribers to your services, your customers might appreciate a free month or discount off the monthly fee.
  • Revisit your up-sell list and incorporate a free or discounted complimentary service into your referral incentive plan.
  • Create customers levels, such as Platinum, Gold, Silver and outline their benefits. Most individuals appreciate your attention and acknowledgement of their loyalty.
  • Develop a “Member’s Only Area,” that has an elite, club-like atmosphere.
  • Even offer plain old greenbacks as an incentive…this age-old technique is still alive and kicking!

Now, depending on your market and your products or services, you should be able to create a low-margin or nearly-free incentive that will give your customers tremendous value and benefits.

2. Create a plan that will deliver the incentive(s) to your customer after they have sent your company X referrals.

You can also add another incentive level for when they send you Y referrals that end up moving to different stages in the steps to the sale.

Your active referral system might be structured something like this:

–  For every 6 friends or relatives that visit your store, your customer receives A.

  For every 4 friends or relatives that sign up for a demo, your customer receives B.

–  For every 2 friends or relatives that purchase from you, your customer receives C.

When you feel you have created some valuable incentive packages, move on to the next step.

3. Next you need to plan out how your company is going to track, monitor, and deliver these incentives to your customers.

This needs to be planned out carefully to ensure that no referral is ever missed or assigned to the wrong referrer.

It’s important to keep at the forefront of your mind that this extra program has the potential to significantly increase your company’s profitability. A customer who is rewarded for helping your company will continue their happy relationship with you.

But if the program is mismanaged, it can backfire with explosive force.

No matter how happy a customer has been with you and your service, if they feel slighted or are denied something they were promised, they can turn on a dime and will start telling EVERYONE about how your company cheated them out of something they were promised. And in the day and age of social media and online reviews, this is a VERY critical point to drive home.

So, this step is extremely important to think through, plan out and test before you implement it with your customers.

4. The next step is to make sure the incentives you are offering and the methods of tracking and delivery are financially feasible and do indeed increase profitability.

Surprisingly, many incentive programs are launched and end up having a short or long-term negative ROI. This is counter-productive to our goals here! So reworking and more analyses should be done to make sure this will benefit everyone involved.

5. Finally when you feel you have created a program that tracks and rewards your customer for referring leads and new customers to your company, you need to plan out how you are going to communicate this new program to your customer base.

Fortunately leverage has another home here! By using the power of email marketing, you have the ability to communicate your new program with your customers during their automated follow-up campaign.

Discussing and reminding them about your referral program can be easily tucked in between other pieces of valuable information you are sending them in your normal customer consumption autoresponder series.

Now, this is a good start for creating a powerful new lead generation channel by leveraging your current customer database. By engaging this one simple method of actively requesting your current customers to send you referrals, you should be able to see a steady increase in monthly profits.

Make sure your website passes the basic requirements to be found on Google. This free audit will help guide you as you prepare to suit up and beat out competitors.

Click Here For Your Free Website Audit

2016-10-30T18:19:55+00:00 April 6th, 2016|CLV|0 Comments

Client Lifetime Value | Portland SEO Company

Client Lifetime Value | Portland SEO Company

The past 10 years or so have seen a dramatic increase in competitive products, services, and sales channels. In addition to that, advertising costs have gone through the roof, compounding the financial vice that has continued to squeeze businesses all over the world. As a Portland SEO Company, we know it, we felt it, and we accepted it!

So how do you fight to win?

The knee-jerk reaction to increased competition is to decrease prices.

Have a sale and sell your products and services for less than your competitors! But this is a downward vortex that trains your prospects and customers to continually shop price instead of value.

Price is only an objection in the absence of value.

Now, we’re talking about increasing your lead conversions…which seems like an obvious way to increase profits. Well, not if you are decreasing your prices in order to convert more sales.

I want to show you how to leverage your current customers to help you increase your lead conversions.


Passive and Active Referrals For A Portland SEO Company

Portland SEO CompanyIncreasing referrals is the best low-budget method of bringing in pre-sold, highly-qualified leads that convert amazingly well for your products and services.

We are firm believers in leverage. If you are a small or medium business nowadays, you don’t have the time, money, or resources available to scale and grow your business. So it’s absolutely critical to seek out new ways to leverage the assets you already have.

Now, while Neovora is a Local Search Engine Optimization Company, with a focus on targeting the best and most qualified prospects, there really is no better way to supercharge your business than a streamlined passive and active referral program.

Your current clients are a powerful asset; studies show that as high as 80% of current customers are willing to give referrals, if asked!!!

Chances are you already enjoy a passive referral system. You have happy customers who have been delighted with their experience with you and your products or services, and they have tweeted, blogged, and even told their friends about your company. This is great, and they should be commended.

However, you have NO control over this method of obtaining referrals.

At some point, whether your team is made aware of it or not, some of those friends turn into prospects, and some of those turn into customers.

In general, a referral is:

  • Easier/faster to sell to,
  • More agreeable to work with,
  • More profitable than a normal prospect,
  • Happier after the sale.

Why is that?

Well, you have an army of special sales people out there touting all the benefits they’ve received from your products, your services, and your business. And they are not doing this to receive any monetary gains. They are doing it because they care about their friends and want them to experience the same level of quality and service they have received. However, you must make sure that everyone receives similar service, equal to why your past customers are referring your business.

Referrals are the most valuable prospects a business can receive.

But why just sit and wait for them to come in? With just a little bit of automated follow-up, you can turn that passive system into an active and highly profitable system that continues to send a steady stream of pre-sold leads directly to your front door.

SEO Portland | How to create an active referral system:

It’s actually quite easy to plan and employ an active referral system.

1. Consider some incentives that your current customers would find highly valuable.

  • For monthly subscribers to your services, your customers might appreciate a free month or discount off the monthly fee.
  • Revisit your up-sell list and incorporate a free or discounted complimentary service into your referral incentive plan.
  • Create customers levels, such as Platinum, Gold, Silver and outline their benefits. Most individuals appreciate your attention and acknowledgement of their loyalty.
  • Develop a “Member’s Only Area,” that has an elite, club-like atmosphere.
  • Even offer plain old greenbacks as an incentive…this age-old technique is still alive and kicking!

Now, depending on your market and your products or services, you should be able to create a low-margin or nearly-free incentive that will give your customers tremendous value and benefits.

2.  Create a plan that will deliver the incentive(s) to your customer after they have sent your company X referrals.

You can also add another incentive level for when they send you Y referrals that end up moving to different stages in the steps to the sale.

Your active referral system might be structured something like this:

–  For every 6 friends or relatives that visit your store, your customer receives A.

–  For every 4 friends or relatives that sign up for a demo, your customer receives B.

–  For every 2 friends or relatives that purchase from you, your customer receives C.

When you feel you have created some valuable incentive packages, move on to the next step.

3. Next you need to plan out how your company is going to track, monitor, and deliver these incentives to your customers.

This needs to be planned out carefully to ensure that no referral is ever missed or assigned to the wrong referrer.

It’s important to keep at the forefront of your mind that this extra program has the potential to significantly increase your company’s profitability. A customer who is rewarded for helping your company will continue their happy relationship with you.

But if the program is mismanaged, it can backfire with explosive force.

No matter how happy a customer has been with you and your service, if they feel slighted or are denied something they were promised, they can turn on a dime and will start telling EVERYONE about how your company cheated them out of something they were promised. And in the day and age of social media and online reviews, this is a VERY critical point to drive home.

So, this step is extremely important to think through, plan out and test before you implement it with your customers.

Client Lifetime Value | Portland SEO Company

Portland SEO Company

4. The next step is to make sure the incentives you are offering and the methods of tracking and delivery are financially feasible and do indeed increase profitability.

Surprisingly, many incentive programs are launched and end up having a short or long-term negative ROI. This is counter-productive to our goals here! So reworking and more analyses should be done to make sure this will benefit everyone involved.

5. Finally when you feel you have created a program that tracks and rewards your customer for referring leads and new customers to your company, you need to plan out how you are going to communicate this new program to your customer base.

Fortunately leverage has another home here! By using the power of email marketing, you have the ability to communicate your new program with your customers during their automated follow-up campaign.

Discussing and reminding them about your referral program can be easily tucked in between other pieces of valuable information you are sending them in your normal customer consumption autoresponder series.

Take It From A Portland SEO Company

Now, this is a good start for creating a powerful new lead generation channel by leveraging your current customer database. By engaging this one simple method of actively requesting your current customers to send you referrals, you should be able to see a steady increase in monthly profits.

Make sure that your site is helping to convert those visitors. In order to ensure that the site is high-quality and will attract customers, you need an audit. Our free audit will help guide you in ensuring that your site meets the minimum qualifications to get on seen on search engines. Take it from a Portland SEO Company, free advice is not common!

Click Here For Your Free Website Audit
2016-10-30T18:19:55+00:00 February 14th, 2016|CLV|0 Comments

2 Simple Steps Towards Optimizing Your CLV

One of the first things we are generally asked when we meet with clients who want to take their business to the next earning level is, “How can I increase my company’s profitability?”
We have worked with several businesses in Fresno, recognized as the premier Fresno SEO Expert, and earlier last month we met with a long-time client regarding advanced SEO strategies. He has been implementing every strategy and tactic we have scheduled for him, and things have been progressing right on track. Now he wants to make some small changes in order to realize sizeable profits. We shared with him 2 strategies he had known about, but surprisingly just had not put in place because he couldn’t envision how all the pieces went together.

That’s because he was looking at these strategies from the lens of increasing profits as the primary goal, NOT increasing CLV and letting the profits rise naturally.

So I figured this would be a great angle to share here, because it’s applicable to every business and is actually very easy to put in place once you have the high-level vision.

These 2 simple strategies and tactics you are about to learn have the potential to generate a larger, faster cash flow surge than your company has probably ever experienced.

There will probably be some things you’ve heard of before….but chances are good you have never implemented them – just like our client. There’s going to be some metrics that will give you clear-as-a-bell clarity and insight into your client database that you’d swear has been kept a secret from you on purpose.

This is my favorite subject because it’s something you can automate and can therefore leverage your largest asset in order to literally create a mountain of sales out of thin air.

Now don’t get overwhelmed with this stuff. You just need to understand the system enough to delegate its management to someone in your organization and know what to expect for results.

I know it’s easy to get caught up in the numbers. In order to increase margins by X, your sales team needs to increase productivity by Y. But it really doesn’t have to be SO overwhelming in order to create substantial changes to your bottom line.

Why Client Lifetime Value Is Important | Fresno Marketing

Fresno SEO Company

The Law of Compounding Reasons that Small Changes can Yield Big Results.

Let’s say you had the mandate to increase revenue by $48,000 this year. It might sound like a lot. But if your average revenue is, say, $500 per sale, that would mean you would need to have only 8 more sales per month, or 2 more per week. Just the small change of adding a couple more sales each week can drastically change your profits by the end of the year.

The same law applies to your overall business. Small changes in just a few KEY areas of your business can add up to BIG changes throughout the entire company.

Did you know that a mere 15% increase in:

  • Pricing/margins
  • Average profit per transaction Lead conversion
  • Sales to current and past customers

can more than DOUBLE your business? Well, I’m here to tell you it can and I want to show you how. Let’s not waste any more time chit-chatting, we’re going to jump right in to some strategies you can start using today to increase your customers’ lifecycle and explode your backend profits.

We’ll be covering 2 different strategies, each one has the potential by itself to bring you backend profits your forecasting has only dreamed of. Each one of these systems will focus on present and past customers.

So let’s get going.

1.    Increase Prices / Margins

The first strategy is something that is probably the simplest form of increasing your backend profits, and that is just raising prices. As long as costs stay the same, an increase in margins will add profit to your bottom line.

But with this you will want to start small…you don’t want to turn loyal customers away by having huge price hikes.

The most important aspect here, and the reason why so many try raising prices and fail, is that you have to TEST your price increases. For 20% of your customers, increase prices by 1%. For the next group of 20%, increase prices by 2%…and so on. Monitor which groups give push-back and if you can’t find a way to increase the perceived value of your product or service, drop them back a % or offer an incentive.

The key here is to gently increase your profits without causing any customers to defect and look toward your competition for their solution. Customers who are very happy with your products and services should not have too much of a problem with a small increase, and will continue their relationship with your company.

2.    Increase Profit Per Transaction

increase customer loyaltyA great strategy to use when someone is in the purchase process is to offer them an upsell. McDonald’s has this down to a science! The classic, “Would you like fries with that?” and “Can we supersize that for you?” questions are upsells that spell cha-CHING!

Impulse items at the checkout counter…a scone or cookie with your Starbucks…floor mats with your 2016 Chevy Silverado 2500HD. Each one of these add-ons is an upsell that adds a significant amount of profit to each purchase. And of course, those all add up to huge overall profits.

One of the most unfortunate oversights that many businesses make is not taking advantage of this very simple opportunity to increase sales during a purchase. Many simply never thought about it. And a large percentage of them think they don’t have anything to offer as an upsell at the time of purchase.

Well, regardless of how many products and services you currently sell, you should ALWAYS have a way to give your customer an upsell. Some examples:

  • Offer a package deal if they buy one or more complimentary products right now (ie. amazon.com’s “Frequently Bought Together” strategy)
  • Offer a discount off the monthly rate if they pay for 6 or 12 months right now (ie. HostGator’s “Starting at $3.96* per month!” hook)
  • Offer to add products to the purchase now to make it easier for them. This way they won’t have to come back and buy it/them separately (The floor mats, service contract, DVD player upsell strategy used by your local Chevy Dealership)
  • Create essential packages that significantly increase product usability and include items they would have had to buy separately in order for the product to perform (ie. Best Buy’s packages of computer, monitor, and printer)

These strategies work whether you are a B2C or B2B. Become proactive about what your customer is going to need in the future (like software upgrades or service) or what other offers will compliment what they are buying and will significantly increase their user experience.

These are tactics you can do right this second to increase profits starting today…but it’s vital that you come at them with the frame of mind that you are doing this to build your Client Lifetime Value, not gauging them for a quick buck. Long term bucks last much longer than short term ones! Was this post helpful? Visit the other posts in the Fresno SEO Company series!

Do you know how your site fairs on the web against competitors? Get you free website analysis today to see if your site is optimized to draw traffic.

Click Here For Your Free Website Audit

2016-10-30T18:19:55+00:00 January 10th, 2016|CLV|0 Comments

4 Things You Probably Don’t Know About CLV (And Wish You Knew!)

Every day more and more managers and decision makers are discovering the strategic importance of CLV in forecasting, planning, and decision making. Although Customer Lifetime Value has been around for a while, some small companies still do not clearly understand how vital it is for their business.

As we have outlined within other content within our site, having a Lifecycle Analytics or CLV strategy for your overall SEO plan is a game changer. While working with our Fresno SEO clients, we have implemented a very strategic scoring process for each of our clients to clearly identify who their best “type” of client is as well as how to better target this group of prospects.

However, even those who understand its strategic importance consistently ignore 4 very important facts:You Customer LTV

1. Customer LTV is not a strategy, but an analytical tool.

If your business has substantial customer revenue and costs even after the first transaction,  Customer Lifetime Value can be an excellent analytical tool to evaluate future investments. You can calculate LTV (Life Time Value) and use it together with other parameters to support your strategy. And it is indeed a very useful metric to consider when making strategic decisions, but it is not a strategy itself. The future of your business is uncertain and calculating LVT can give you some clarity, but it still is a set of predictions and shouldn’t be confused with actual facts.

2. Customer Lifetime Value is not just one number – it should be different numbers for different types of customers.

If you are using just a single number for all your customers, stop now. You’ve got it all wrong. It’s fine to calculate that “the average” customer is worth $387, but do not think that this is enough to make wise business decisions. Chances are, your business has a variety of different types of customers and one single estimation doesn’t reflect all of them. Remember that different acquisition channels can generate more LTV than others, with organic search to generate more LVT than average in comparison with other channels in retail and ecommerce businesses.

3. You should be very careful with your CLV methods when a very large percentage of it is at risk in the future. Or consider spending more on the customer.

Let me explain. We often see businesses spending 95%-100% of the first transaction profit on acquiring a new customer in hopes that these new customers will bring increased profits in the future. This way, you spend more on third-party services (such as marketing) before even acquiring the customer. It is wiser to spend some of your money on retaining current customers than risking acquiring new ones. If you still insist on spending a large amount of first transaction profit on customer acquisition, make sure you closely monitor and analyze the results as the risk of failing (and losing money) is way higher.

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4. Customer Lifetime Values are not static…they change over time.

This is a very common business mistake. Business owners and managers make future estimates based on the current LTV calculation, but those are accurate only for the near future and not five or ten years from now. It is wrong to assume that by keeping acquisition costs lower than the current Customer Lifetime Value, you will have a certain amount of revenue many years from now. Chances are that if you measure CLV one year from now, you will see a different number, even within the same channels. Your team should monitor, compare and identify trends in LTV overtime, between the same and different channels and customer groups.

Overall, CLV can be a fantastic analytical tool but only when it is measured frequently, all customer types are taken into consideration, extra attention is paid when future risks are higher, and when it is used as one of several strategic tools and not as a strategy itself. Be sure to check out or recent post in the Fresno SEO Expert series.

CLV is important, but first you need to get the lead and the sale! The first part is attracting prospects to your site. Make sure you are fully optimized by checking out our free website audit.

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2016-10-30T18:19:55+00:00 December 27th, 2015|CLV|0 Comments

4 Super Simple Steps To Increasing Customer Lifetime Value

How You Can Increase CLV

Do you know how much a customer is worth to your business and how to increase that value?

We were talking with a client in Albuquerque, New Mexico regarding their overall Albuquerque SEO strategy, and the impact that it has on CLV. More specifically, when you know which type of clients bring your business the best overall long-term value, it makes it much easier to target that type of client in the future, with both your digital marketing as well as offline strategies.

Knowing exactly how much every new customer is worth can be very handy when calculating estimated revenue or determining how much your business needs to invest in marketing and sales. It can also help you identify what needs to be done in order to increase customer lifetime value.

increase CLV by improving customer satisfactionThe easiest way to increase CLV is to keep your customers happy. A satisfied customer is loyal, spends more or buys more often from your business and stays a client longer. Plus, chances are high they will recommend your products or services to others they know or meet. We have crafted a simple 4-step guide on what you need to do in order to boost you business’ Customer Lifetime Value.

Why Customer Lifetime Value is Important

But before going through the steps let’s see what customer lifetime value is and why it is important:

  • CLV is the total estimated net profit from your entire relationship with a  customer.
  • It costs 6-10 times more to acquire a new customer than retain an old one!
  • Research by Harvard Business School has shown that if a business increases its customer retention rates by only 5%, their profits will increase by 25% to 95%!!!
  • Most companies have a small  base of loyal customers that spend more and are responsible for the majority of their profits.

Okay, now let’s move on to the CLV Boost Guide for Beginners (in 4 Super Simple Steps).

Step 1. Calculate Customer Lifetime Value

Calculating CLV can be very complicated but you can use the simple CLV formula below:

  1. How long does an average customer continue buying from you? (in years)
  2. How many dollars, on average, does he spend per year?
  3. Now multiply those two and..Ta-da! You have your CLV!

For our purposes, there’s no need to make this as difficult of a task as it could be!

Step 2. Determine Customer Satisfaction

As mentioned above, CLV is linked to how happy your customers are. So now that you have calculated customer value, you need to measure customer satisfaction. There are many ways to identify how happy your customers are, simply by asking them! You can do that creating online surveys (www.surveymonkey.com for example) and ask your customers to give you feedback. This way you will see where you need to make tweaks and improvements to increase CLV.

Step 3. Increase Customer Satisfaction (and boost CLV)

Don’t forget this step! Making customers happier may seem like a complicated puzzle with too many pieces to put together BUT, believe me, even the smallest change can have a huge impact on Customer Lifetime Value. In order to be able to improve customer satisfaction you need to understand what your customers expect from you and meet those expectations.

Here are some simple tactics you can do to boost customer satisfaction AND, consequently, CLV.

  • Provide exceptional customer service. In a world where businesses focus on just making the sale and offer very low-quality customer service, your customers will easily see and feel the difference.
  • Deliver what you have promised. Set very clear expectations at the very beginning of the relationship and do what you said you would do.
    If possible, exceed expectations.
  • Be a human, not a corporation. Communicate with your customers like you would with a friend. Call them by their first name, make jokes, get to know them a bit better.
  • There are so many things you can do to make your customers happier and it also depends on your industry, the type of business you are in, and your niche.

Step 4. Go back and make tweaks.

After 6 months, measure your CLV again to see if the changes you’ve made have had an impact. To do so, send another survey to your customers and compare the new data with the ones you had before. This way you can have insight of what your customers think of the changes you’ve made and if they are happier or not. Again, identify the areas where you can make improvements to increase customer satisfaction even more.

Increasing CLV = More Money to your Bottom Line

The key ingredient for increasing Customer Lifetime Value is to understand your customers’ needs and keep them satisfied after the sale and beyond. Build trust and long-term relationships with your customers, and exceed their expectations in order to have them coming back to you for many many years. And remember…even tiny changes can help you boost customer satisfaction, CLV, and dramatically increase profits.

Make sure that your site is fully optimized, in order to get the website traffic and the sale before worrying about CLV. Our free website audit will help you understand your site and what’s going on under the hood.

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2016-10-30T18:19:55+00:00 December 15th, 2015|Client Retention, CLV|0 Comments
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