Internet Marketing & Client Lifetime Value | Fresno SEO
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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:
- Attract Prospects
- Convert Visitors
- Close Leads
- Impress Customers
- Grow Business
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This 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:
- How long does a client STAY a client on average? (in years)
- How much does the client spend per year on average? (per year)
- 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.
- Increase the frequency with which your clients go through a transaction.
- 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.
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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.
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