How to Increase B2B Customer Lifetime Value
Customer lifetime value (CLV) is the amount of money you can expect to make from a client over the course of your business relationship. Fostering a good relationship with your customers can increase this lifetime value, and there are a variety of digital marketing tools you can implement to help nurture those relationships. Most of these tools fall into two categories––segmentation, and tailored content. By performing just these two basic steps, you can seriously increase the customer lifetime value, ensuring you’re providing your clients with quality customer service, while increasing your ROI at the same time. Here’s how to get it done:
The first step to increasing customer lifetime value is to segment your customers into groups based on shared traits, such as revenue or industry. This will allow you to determine the shared characteristics of clients in these segments—their wants, needs, and pain points—and make product or service changes to meet those needs, as well as create content that addresses them.
Once you’ve segmented your customer base, you can determine which of those segments is the most valuable to your company, and you can focus your marketing efforts on attracting and retaining clients in this segment. By focusing your efforts on the most valuable client segment, you attract and retain more clients in this segment, increasing overall customer lifetime value, as well as extending CLV for this segment.
Create content that addresses the pain points that your customer segments have at each stage of the buyer’s journey, including post-sale. No matter what products or services you offer, you can provide information that will increase the benefit your customers derive from their purchase at all steps of the buyer’s journey, which ensures you keep previous clients, as you’re gaining new ones.
Use your segments to tailor follow-up messaging to the client type’s needs with relevant content, news, and offers. You can also take time here to thank your clients for their purchase—clients who feel that their business is valued and appreciated are more likely to be loyal customers. Follow-up messaging also provides an opportunity to collect feedback from customers that you can incorporate into improving your product, service, or customer experience.
To improve customer lifetime value, you need to do two things: attract clients with a higher initial customer lifetime value (marketing) and extend the customer lifetime (retention). Through strategic messaging and content creation, you can attract more clients from your ideal buyer type (buyers in the highest CLV segment) and retain your best clients, increasing their lifetime value.
If you’re interested in using digital marketing to attract new leads and increase retention and customer lifetime value, Evenbound can help.