Learn how you can Unlock Limitless Customer Lifetime Value with CleverTap’s All-in-One Customer Engagement Platform.
Here’s a question. What do you suppose is the customer lifetime value (CLV) of Starbucks? Take a minute and ponder. Okay, would you believe that it’s over $14,000?* That’s a monster number for a company whose most popular product is a cup of coffee.
On the other hand, what kind of numbers can GoPro point to, this maker of active lifestyle cameras that practically invented the market segment? Despite being, at one time, a household name whose cameras sold like hotcakes, today the company’s stock hovers at around $4 — down from a high of $87 in 2014. What went wrong? Low CLV. Once a customer bought a camera, they were unlikely to purchase another for quite a while, which put a major dent in their average CLV.*
These two contrasting stories of brands with massive name recognition are a good example of the importance of understanding what is, and what drives, your customer lifetime value — the metric that measures the total revenue a customer is expected to generate throughout their lifetime as your customer.
Understanding and maximizing CLV is crucial for sustainable growth and profitability. It’s important because it helps you think about how to optimize your acquisition spending for maximum value rather than for minimum cost.
CleverTap, with its powerful customer engagement platform, offers strategies and tools to unlock and optimize customer lifetime value. In this post, we explore effective strategies to boost CLV with our all-in-one engagement platform.
Effective customer segmentation is the foundation for maximizing CLV. CleverTap’s advanced segmentation capabilities allow you to group customers based on their behavior, preferences, and interactions with your app or platform. By segmenting your audience, you can deliver highly personalized messaging, promotions, and experiences that resonate with each customer segment, fostering long-term loyalty and increasing CLV.
Take a look at how Starquik does their segmentation. They start with 12 segments based on user personas, which are then further segmented based on recency, frequency, and monetary value (RFM) analysis. Micro-segments are also created based on product categories. By identifying various user segments, Starquik was able to identify key user groups and tailor engagement for them. For example, if a consumer exclusively purchases fresh foods, StarQuik will promote a fresh foods monthly plan.
Sample screens from the Starquik app
CleverTap enables you to set up behavior-based triggers that automatically send targeted messages to users based on specific actions or inactions. For example, you can send a personalized offer to customers who haven’t made a purchase in a while, encouraging them to re-engage with your business. These trigger campaigns help reactivate dormant users, increase their engagement, and drive repeat purchases, all of which contribute to higher CLV. In fact, triggered campaigns have been found to have a more than 22% higher open rate and 7% higher click-through rate compared to routine marketing messages*.
Beblue sends automated push notification campaigns scheduled for a particular time, or triggered by real-time user activity, all to drive user engagement. These trigger campaigns allow Beblue to interact with users every day without annoying them with irrelevant messages. Automated user segments and advanced personalization capabilities save the Beblue marketing team time and resources.
Implementing loyalty programs is an effective way to increase CLV and foster customer loyalty. CleverTap allows you to design and manage loyalty programs that reward customers for their continued engagement and purchases. By offering exclusive discounts, rewards, or VIP status, you can incentivize customers to stay loyal to your brand, leading to increased CLV over time.
CleverTap’s recommendation engine uses machine learning algorithms to provide personalized product recommendations to individual customers. By showcasing products or content that align with each customer’s preferences and purchase history, you can enhance their shopping experience, drive cross-selling and upselling opportunities, and ultimately boost CLV through increased average order value.
Personalized email copy to recommend relevant movies to a user
Minimizing customer churn is essential for maximizing CLV. CleverTap’s churn prediction and prevention capabilities help you identify customers who are at risk of churning and take proactive measures to retain them. By engaging at-risk customers with targeted campaigns and offers, you can increase their satisfaction, loyalty, and CLV.
Ayopop is an Indonesian fintech app for consumers to pay bills and complete other digital transactions. They needed to improve the onboarding process and understand the reasons for drop-offs.
Using our platform, they were able to fine-tune the entire user journey. They utilized funnels and cohort analysis to look at campaign performance in real time. Automated segmentation enabled Ayopop to create unique, personalized campaigns to keep their audience engaged. And with bulletins, their app now sends reminders with the specific bill amount which can then easily be paid via the CTA button.
These changes resulted in Ayopop increasing active users by 26% and reducing their 90-day churn rate by 15%.
CleverTap’s A/B testing feature empowers you to experiment with different marketing messages, promotions, and campaigns to identify the most effective ones. By testing variations and analyzing the results, you can optimize your marketing efforts to better resonate with your audience and drive higher CLV.
CleverTap’s in-app messaging and push notification features enable real-time communication with your customers. By delivering relevant and timely messages, you can keep customers engaged, informed, and interested in your offerings. Whether it’s announcing a limited-time sale or sharing personalized content, these communication channels contribute to increased user retention and CLV.
Sample in-app message, promoting a special offer
Implementing lifecycle marketing strategies with CleverTap allows you to guide customers through different stages of their journey with your brand. From onboarding new users to nurturing and re-engaging existing ones, CleverTap’s platform enables you to tailor communications and experiences based on where each customer is in their lifecycle. This strategic approach drives ongoing engagement and CLV growth.
CleverTap provides an all-in-one solution to unlock the full potential of Customer Lifetime Value. By focusing on personalized experiences, retention marketing, and data-driven insights, you can create long-term customer relationships that drive repeat business and sustainable growth.
Remember, customer loyalty is not just about one-time transactions; it’s about building a loyal customer base that continues to choose your brand over your competitors. Because your customers are the lifeblood of your business. By focusing on their needs, preferences, and experiences, you can create a thriving customer community that stays loyal to your brand for years to come.
With CleverTap, you have the tools and insights to build these lasting relationships and unlock the full potential of your customer base by maximizing Customer Lifetime Value. And if you have any further questions or need assistance with implementing these strategies, feel free to reach out. Happy unlocking!
Mastering Mobile App Engagement & Retention
![What Are Push Notifications? The Ultimate Guide[2024]](https://clevertap.com/wp-content/uploads/2021/05/Push-Notification-Header.png?w=1024)