Learn how you can Unlock Limitless Customer Lifetime Value with CleverTap’s All-in-One Customer Engagement Platform.
How businesses and apps engage with their customers and users is in continual flux, evolving with changes in technology (ChatGPT anyone?), in the marketplace (hurray for all things digital and virtual!), the workplace (looking at you, remote workers), and finally and perhaps most importantly, in evolving customer expectations from the apps they use, need, and enjoy.
In particular, the increasing dominance of digital solutions has resulted in a renewed focus by brands on enhancing users’ digital experience. In fact, according to Gartner, 89% of brands are prioritizing enhancing their customers’ digital experiences.*
Sounds great, right? Not so fast. Because the same study shows that, “only 14% of customers perceive these [enhanced] experiences as differentiated and — more importantly — that these digital experiences have shifted their buying behavior.” In short, the impact of these efforts is considerably less than expected.
So, what can brands do to create truly lasting impressions, especially within an increasingly competitive landscape? And how can brands hone and optimize their digital experience strategy to meet their customers’ evolving needs?
To evolve with the changing customer behavior and ensure healthy growth and ROI, the savviest brands are working to build a connection with their most valuable customers, one that will help to ensure high retention of this segment. To do this, they need to understand their customers through insights that span all touchpoints. And, these efforts must be undertaken quite strategically, with a focus on two critical imperatives: reducing friction and fostering customer loyalty.
Ultimately, the goal driving these efforts is to increase customer lifetime value, or CLV.
By targeting and retaining their most-valuable customers, brands will ultimately increase their CLV. Calculated using average order size, number of orders, and retention period, CLV is a key metric that aggregates and quantifies customer retention, customer loyalty, and overall customer value.
Customers who stay with a business for a longer period of time tend to generate 50% higher revenue compared to other customers. This is because they spend more money, generate repeat business over time, and are willing to pay a premium. CLV helps businesses understand how marketing efforts can lead to higher profitability.
More than engagement, retention, or other KPIs, CLV is the essential measurement because it gauges and quantifies the customer’s holistic digital experience. In short, a high CLV shows that a customer is highly satisfied with their experience with your brand.
To create a longer lasting impact, one that will increase CLV, brands need to create curated, memorable, and individualized experiences for their customers. These kinds of experiences change customers’ understanding of their own needs and make them feel more comfortable moving in a new direction and more confident in their decisions.
Brands that are able to do this will make a longer-lasting impression on customers and motivate them to become brand advocates. Why? Because customers will begin to see that the brand understands their specific needs, triggers, and barriers and wants to build a long term, symbiotic relationship with them.
Put another way, customers need to feel that the brand understands all their needs, triggers, and barriers and is prepared to build a long-term, symbiotic relationship with them — one which benefits them both. When a brand is able to achieve this, it creates a more profound, longer-lasting impression that increases customer loyalty. And this better assures the retention of that key cohort: their most valuable customers who generate higher CLV.
Because of these shifts, CleverTap has been working on a roadmap — a vision for Future Readiness — that will support and empower our customers goals to increase their customer lifetime value. We’ve worked hard to create and offer these five pillars and focus areas to support this Future Ready vision:
We believe that with these five pillars acting as our first principles, you’ll be able to create truly long-lasting relationships with your customers. As their preferences evolve, CleverTap will be right there with you, helping you to grow alongside them and adapt as their needs and desires change.
Our all-in-one engagement platform is designed to support the creation of personalized experiences that are tailored to the unique needs of users in various industries. We enable our customers to significantly improve the effectiveness of their retention strategies, boost user loyalty, and maximize customer lifetime value with our all-in-one engagement platform.
Our platform enables marketers to effectively meet the following goals:
To learn more about CleverTap and how our platform will support your present and future growth and success in an ever-changing marketplace, visit our website to learn more.
And do look for our next blog that dives deeper into how we’ve redesigned our platform and how exactly it will enable you to engage more customers and increase your CLV.
See how today’s top brands use CleverTap to drive long-term growth and retention