The main objective of every business is profit. But the main thing in this structure is not only to receive income, but also to be able to correctly distribute them. That is why a systematic performance analysis is an essential part of a successful business. One of the main indexes used by marketers is LTV.
LTV (LifeTime value) is a client’s life cycle, the total amount of profit that you receive from a person throughout his “life” as your client.
Thanks to LTV, you can:
— focus on real success;
— to highlight for themselves customers who create real value for the business;
— determine the path to the highest profit;
— better get to know your customers.
- the opportunity to sell a product / service to a new customer — 5–20%, to an existing one — 60–70%
- 5% increase in LTV is always an increase in your profit by 25-95%
- about 60% of customers will go to competitors if they provide more contact points (sites, social networks, mailing lists)
— Better get to know your customers.
How to increase LTV?
1. EMAIL-MARKETING & WEB PUSH
The newsletter helps customers focus on the brand, keep attention on it. If a person regularly receives information about a company, they often return to it and more often buy the corresponding goods / services.
– Separate the database of contacts by interests, frequency of purchases and their type;
– Make catchy messages, use catchy headers;
– Check the topic and make sure that the content is interesting and relevant to your target audience;
– Regularity = habit. To send emails on a regular basis means to remind the brand to customers, which leads to increased sales.
2. POINTS OF INTERACTION
– Create multi-channel marketing for yourself, the brand presence should be as large as possible: website, social networks, channels, bots.
3. USE OF SUBSCRIPTIONS
The most powerful way to improve your LTV is to turn the product into a subscription. For example, to make a thematic blog on a paid subscription, a training platform. Thus, you can constantly receive a stream of income.
Cross-selling is the motivation of the client to receive additional services or to buy additional goods of your brand, and for you – to get more income.
During the sale, you can significantly increase the value of the client and involve him even more.
5. QUALITY IS OUR ALL
Good customer service leads directly to increased LTV. You must always ensure that the client is satisfied at every stage of the work.
Optimize your interactions with him and he will surely appeal to you more than once.