How to increase LTV of a customer


Until the last post, we have been speaking about how to acquire first time customers, we now shift our focus from "reaching out" to new potential customers to "how to maintain customers." which means, we will talk about the last two part of this graphic.




So what keeps a loyal customer?


I have to start by saying that loyal customers are rare.

Even if they like your product and price, as soon as they find something cheaper and better, they will switch brand unless they have emotional attachment to you. We can talk about that toward the end of the article more. But the question then becomes, where should your focus be!? You need to focus on what you CAN control which is creating more opportunities then trying to convince customers who want to leave you. This is why reaching new customers through branding is SO IMPORTANT because:


YOU CAN NEVER ACHIEVE 100% OF YOUR POTENTIAL CUSTOMERS HOWEVER BIG YOU GET. THER IS ALWAYS MORE PEOPLE TO REACH.

Verses, if you try to master the relationship with existing customers who are more limited in quantity.

I know I sound contradiction but it just means that although you should treat every single customer with significance and do your absolute best to deliver the best experience possible, you CAN NOT fully control what they'd do for you in return. So try to focus on what you CAN control instead of what you CAN NOT control.


Product Quality

This is top notch factor when it comes to keeping a loyal customer. This also includes how unique your product is. If your product is unique that people can not find it anywhere else for the price you offer, people will get addicted to your product regardless of bad reviews you might get. So once your product is bought by someone, it becomes less "branding game" and it becomes more "customer satisfaction game."



Price

Another factor is your price. In order for a customer to be a loyal customer who buys from you regularly, you have to be affordable to the target demographic.



Convenience

Convenience is another factor. Some products just need to be cheap and available at the time of demand.

Let's put this in perspective. If a customer needs to buy a lighter, ( we call it elastic product ), this person wouldn't care much of customer review or the brand. They can just stop by in a gas station and pick up a lighter. So in this case, you just need to focus on widening your distribution channels to make your product accessible.


Let's bring in another example, what if you have a hair salon within 5 minutes from your house with super bad customer experience, including high price and bad final hair cut versus, another hair salon at 2 hours away from your house with cheaper and yet, an extraordinary customer experience?


You might have the patient to go all the way out to the salon b for first few years ( if not months ) but you most likely start coming up with another solution such as cutting your hair by yourself or even going back to the closer hair salon. So convenience is another factor to consider.



Brand ( Social cause or message bond )

So remember how we started from saying a loyal customer is rare?

It is. Let's say that your customer gives you 10 out of 10 rating. But the same customer later finds another brand with similar product quality, better price, or better convenience, then this customer most-likely now spread their budget between you and them ( the new brand) or even completely switch to them.. UNLESS, you have some sort of very strong bond with them over your competitor.

This can be extraordinary customer experience or creating a bond with the customer with your brand message or swag. You can establish the second one by building personal relationship with your customers. This means that you care for their birthday for example, or you are like their big brother or sister who show them the swag, or you become the ultimate entertainer for them. etc

So it comes back to the power of branding.






Summary:

  1. Customer retention is not something you can control do do not dwell on it

  2. you can only create high retention by being the best solution to your customers' needs. - not what you think customers need but what they actually need.

  3. It comes back to the power of branding.

So now, are you ready to run ads to appear in front of your targeting customers or social media marketing to keep in touch with your customers successfully? We can do both of that in English or Japanese! Learn more below:


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