What impact does quality customer service have on a customer’s lifetime value?
Knowing what kind of car someone drives lets you know how much money they earn, and knowing what kind of people they are lets, you know how much they’ll pay you. So does knowing your customer’s personality give you a leg up when negotiating prices and services?
That’s why businesses invest so heavily in consumer outsourced tech support, customer data collection and analysis—to get a better idea of whom they’re dealing with. Whether through surveys, social media feedback, or detailed personal information captured by cookies, companies collect as much consumer data as possible to gain insights into their customers’ needs and spending habits. That insight allows them to serve those needs better, thus increasing the likelihood that they’ll return again and again.
What is Customer Lifetime Value?
If you’re wondering how to define lifetime customer value, it’s simple.
Customer lifetime value (often referred to as CLV) is the measurement used to calculate an individual customer’s total monetary worth over time, or in other words, customer impact. Businesses often use this to determine how much they should invest in marketing strategies. It is generally accepted that investing more money into current customers increases the chances of retaining them.
How to Improve Lifetime Customer Service?
Enhancing Customer Experience
This may seem like a no-brainer, but you’ll be surprised to know how many businesses fail to meet this basic standard.
Having a clear understanding of the points at which your customers interact with your business means that you can improve the experience they receive and help ensure they have a positive experience. Even if you’re providing an excellent experience right now, you can benefit from identifying areas where improvements can be made. These could include employee training, your customer service team’s workflow reviews, and your post-sale experience enhancements.
After-Sales Support
A sale doesn’t end at receiving the payment. It’s an ongoing process. While the experience a consumer has with a company before they buy is important, the experience the consumer has after they’ve bought something from that company will dictate whether they’ll come back or not. Going back into the target customer persona can assist with determining how many emails are appropriate; however, if they’re likely to respond positively to discounts, a sales call may be necessary.
Nonetheless, companies mustn’t spam customers with review requests.
Omnichannel to the Rescue
Businesses today must provide customer service throughout the entire buying journey, including before and after contact. Customers expect immediate responses to emails and calls, and companies respond quickly through social channels such as Facebook Messenger and Twitter.
Final Say
Whether or not a company measures its customer lifetime value (CLV) every week does not matter. Years may go by before sitting down to calculate these numbers. But knowing about the idea of customer lifetime value (and working on improving customer experiences at every touchpoint) is likely to improve the average customer lifetime value dramatically.
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