How do you retain and nurture your existing customers and increase their lifetime value?

📊Segment customers based on behavior, preferences, needs, and value. 🎯Tailor communication, offers, and incentives to each segment. 📈Use criteria like purchase history, frequency, recency, and engagement. 🛠Leverage tools like CRM systems for effective segmentation. 🔄Provide personalized experiences and relevant content. 🤝Engage with customers through loyalty programs and exclusive offers. 💬Collect and act on customer feedback to improve satisfaction. 📅Regularly review and adjust strategies based on customer data. 🔍Monitor customer lifecycle and identify opportunities for upselling and cross-selling.

Every business should be flexible in its approach to segmentation, adapting strategies as customer behaviors and market dynamics evolve. This adaptability is crucial in maintaining a competitive edge and responding effectively to shifting consumer preferences.

Segment customer journeys via your Welcome Series emails. Start with 3-5 major customer groups that are important to your company/industry and segment them out either personalized message and creative assets.

Customer/Housefile modeling is a key component of segmentation to ensure marketing dollars are not being wasted on inactive customers and/or customers who might currently be found in profitable RFM segments but who are highly unlikely to buy again. Whether you have an inhouse modeling team, or you partner with a data cooperative who can analyze your full customer file leveraging their transaction and spending data to build custom models for you, modeling is essential to determine how far back you can reach to find responsive names worth your marketing investment.

"A good customer segmentation is worth a 1000 strategy meetings" - Michael Porter. Just simple firmographics (B2B) or demographic (B2C) is a good start, though not sufficient.

Segmenting your customers would enable you to have a tailored message and communication channel to address them. Their needs, expectations and rewards may be different and therefore your offers might just be a bit different too. So each segmented customers need specific communication. The communication is easier when channeled efficiently to keep customers aware of your offers and new products, engage them in feedbacks and offering them values will help your business continuity through this retention strategy.

Content driven newsletters is a great way to nurture your customers while they may not be in their buying cycle. Providing timely and useful content will build trust and make your product or service top of mind when the customer is ready to convert.

To retain & increase your ARR, nurture your existing customers and boost their CLTV by treating communication and rewards system like a strategic mission. Ditch the generic mass emails and go for personalized messages/outreach that shows you know them. Offer rewards that matter—exclusive discounts, early access, and surprise gifts. (It should give em a vibe of Insider info, but all depends on present what, communicate how) Keep them informed with engaging updates about new products and services tailored to their interests. By maintaining open, meaningful communication and providing valuable rewards, you'll keep them loyal and increase their lifetime value.

Today, a personalized conversational newsletter is a must, but not any newsletter would work, I have tens of newsletters that I just signed up for but never read, but some of them keep remind me of the reason why I signed up for it, Also, I consider communication with customers as building friendships. with your friends, you get to know their events, their celebrations, their birthdays, and many personal and public events, and just having this in mind, will keep the relationship with them warm.

The main pitfall is confusing quantity with quality, leading to disengagement. Back to FitTrack - imagine sending a weekly email that's actually useful. Warriors get pro tips for maximizing their weekend workouts, Devotees get a virtual high-five for their awesome streaks, and Returners get a friendly "we've got your back" reminder. It's not about flooding inboxes; it's about dropping the right message at the right time.

Spontaneous rewards can create a powerful emotional connection. Whether it's a complimentary product, exclusive access to a sale, or even a simple handwritten note on their special day, these unexpected gestures can go a long way in solidifying customer loyalty.

No matter how much you invest in rewarding your loyal customers, it's cheaper than acquiring new ones, so here's what I do and advice my customers to do in their businesses: 1- Make an annual event invite all your customers to it, and announce the list of loyal customers in that event. 2- Remember them in special events, Christmas and Birthday are great for showing gratitude, 3- make them a top priority when you release a new service/product or offer a discount, and let them know that.

Be careful to consider the difference between a reward and an incentive when considering customer loyalty. A reward comes after the purchase and as a ‘thank you’ for the purchase. An incentive comes before the purchase, and is given in an effort to secure the purchase. The reason why it’s important to distinguish between the two is because the reward builds loyalty to the brand, which is what you want. While the incentive simply encourages a purchase, without really building loyalty toward the brand.

Many loyalty programs miss the emotional aspect of making customers feel truly valued. It's not just about points or discounts, but creating moments of delight and recognition. Consider unexpected rewards, personalized experiences, or exclusive access to new features. For example, FitTrack could surprise "Daily Devotees" with an exclusive workout video after a 30-day streak. This kind of personalized reward shows appreciation and encourages continued engagement. Remember, the most effective rewards aren't always monetary. Recognition, early access, or exclusive content can be powerful loyalty drivers.

There is no better way to grow your accounts organically other than to cross and up-sell your clients. The way I do this is to ASK INFORMED QUESTIONS, LISTEN and RECCOMEND. Use examples of past successful projects and how what you are recommending will add value and ultimately position you as a trustworthy vendor partner that is truly invested in their business.

As an e-commerce manager for a jewellery brand, we tackled post-purchase anxiety by offering an aftercare package for engagement rings, including resizing, cleaning, and repairs. The Result: A significant boost in our engagement ring sales and a substantial increase in average order value (AOV). Here's why: 1. Trust: Prospective buyers recognized our commitment didn't end at the point of sale. 2. Peace of Mind:Offering consistent aftercare comforted those on the fence, turning them into confident buyers. 3. Enhanced Value Proposition: It justified a higher price tag, resulting in a more substantial AOV.

Especially in recurring revenue streams cross selling and up selling is very important for both sides. The client needs are ever changing as well as the cost associated to it. If we won’t upgrade our offerings then retention won’t be possible. It usually said that a client doesn’t really know what they need often, so we create and show them the solution of their existing problem and that doesn’t matter if it is a little expensive.

Especially in recurring revenue streams cross selling and up selling is very important for both sides. The client needs are ever changing as well as the cost associated to it. If we won’t upgrade our offerings then retention won’t be possible. It usually said that a client doesn’t really know what they need often, so we create and show them the solution of their existing problem and that doesn’t matter if it is a little expensive.

The key is to recommend products or services that genuinely add value to the customer's experience, rather than pushing sales indiscriminately. Use data on past purchases and behavior to make relevant suggestions. Timing is crucial - consider moments when customers are most receptive. To stay with this example, FitTrack could offer personalized nutrition plans to users who've achieved weight goals through workouts. This adds value to their fitness journey and feels like a natural progression. Focus on enhancing the customer's success or experience, not just increasing sales. The best upsells feel like helpful suggestions, not sales pitches.

Feedback is the ultimate business booster, Make sure you collect detailed and thorough feedback, I know it might be challenging for customers to provide you with it, but I follow a structured approach to help my customers form their feedback so that I can adjust and improve my service, What I do is one of two: 1- Interview them for 30 minutes, and help them get more reach by introducing them to my network, 2- If they're not happy with an online/in-person interview, I'll send them a 6-question questionnaire to follow, each client I interview or ask for a testimonial will send at least one referral my way and they get 20% of the sale as a reward.

Make your customer feedback process simple. Offer a guided, intuitive platform for feedback and acknowledge every response. Gratefully acknowledge positive feedback, and proactively address and rectify any negative feedback. Continual improvement based on customer input underscores a genuine commitment to excellence.

Regularly request feedback, but more importantly, show customers how their input leads to practical improvements. Many businesses collect feedback but fail to close the loop, missing a crucial opportunity to build loyalty. For instance, if FitTrack users suggest adding a meditation feature, the company should implement it and notify those who requested it. This demonstrates that you value customer opinions and are committed to their satisfaction. Consider involving customers in the development process. This not only improves your product but also creates a sense of ownership and loyalty among users.

When customer/employee suggestions are made and ignored, what was the purpose of asking. Suggestions are made to improve the product/company. Love the idea of notifying the ones who originally had the suggestion. Great insight.

Through the years, I noticed that incentives and referral rewards are great, 20% is just a thank you for spreading the word, but I try to make it measurable and trackable by setting up a referral timeframe, anyone who sends one referral my way in the last 10 days of the month, gets 30% of the sale

Customers are often in multiple journeys. For a Bank, customers could be planning first home purchase, thinking of savings for kids education OR simply planning retirement. Firms need to understand the key journeys where they have unique advantage to drive customer value & map moment of truths. Focus on those key moments within journeys will deliver happy customer outcomes. This approach also syncs well with customer lifetime value capture. Eg Home purchase journey: Supporting home research phase, mapping property shortlists to financing options, frictionless fulfilment & enabling customers to settle in new home through utility partnerships are 4 key moments in journey. Capturing imagination at each key moment drives retention & growth.

Provide excellent customer service. This is the foundation of any successful customer retention strategy. Personalize your interactions with customers. Customers appreciate it when businesses take the time to get to know them and tailor their interactions accordingly. Use customer data to segment your audience and send targeted messages. Offer loyalty programs. Loyalty programs are a great way to reward customers for their continued business and encourage them to spend more with you over time. Provide valuable content and resources. This could include blog posts, articles, e-books, or even videos. Engage with customers on social media. Social media is a great way to stay connected with customers and build relationships with them.

I would also add that exceptional customer service plays a vital role in retaining and nurturing customers, ultimately increasing their lifetime value. By prioritizing prompt and responsive communication, effective problem-solving, and active listening, businesses can build strong relationships and foster customer loyalty. Consistency across touchpoints ensures a consistently high level of care, reinforcing customer trust and satisfaction. Proactively anticipating customer needs allows businesses to go above and beyond, resulting in enhanced customer experiences and increased lifetime value. By prioritizing these customer-centric strategies, businesses can cultivate enduring relationships, drive growth, and achieve long-term success.