Customer lifetime value is calculated based on a company’s revenue and a customer’s purchase habits. Hubspot outlines a simplified way of how to calculate the long-term value of your customers. This is important not only for your sales and revenue goals, but it also affects how your brand is viewed overall.
Some products don’t have a long shelf life. Fidget spinners, anyone? In this case, it may not require as much effort to be successful. The people who bought fidget spinners were either all in or all out. The gadgets either worked or they didn’t. When the trend ran dry, customers moved on and so did the companies who made them. Building long-term value wasn’t in the plan.
These fads are few and far between and typically, cost more money than the investment is worth. As you improve your company’s customer service policies and train your team, think about customer relations on a big picture level. Everything you do to create stronger person-to-person relationships will ultimately help you hit the business goals your company wants to achieve.
Be Known for Being Great
It doesn’t hurt to pause your digital strategies and ask yourself, what do we want to be known for? What makes your brand stand out from the rest? Every year, the percentage of people who trust online reviews as much as their friends increases. Research included in a 2017 Inc. article revealed that number was currently at 84 percent. To have a strong brand presence and value, it’s important that you add it as a theme to your omnichannel marketing strategy. Be known for being great at what you do.
Why build great products or offer fantastic services if you’re only known for the crappy customer service you provide. Relationships matter in everything we do. Why would it be any different when it comes to business?
Admit to Mistakes and Provide Solutions
Let’s face it: people make mistakes, which means companies will make mistakes. What matters is how it’s handled. When a customer doesn’t feel heard or taken care of after putting their buying trust into a brand, they don’t want to just tell that company, they want to tell everyone.
As much effort that’s put into influencer marketing, equal effort is required for reputation management. Do all you can to earn consumer trust. That could mean issuing a refund, offering a replacement product, or a heartfelt apology is sometimes all it takes. Copping to a mistake and remedying it right away can leave a lasting impression on a customer and encourage them to stick around.
Continue Customer Relations Beyond the Purchase Point
Don’t take customers for granted. Up to the purchase point, there is a lot of research, data mining, collaboration, and creation that goes into drawing in more customers to buy from your brand. Once you get people to the purchase point, don’t forget about them down the line.
If you do, it may appear ingenuine. Plus, all the hard work you and your team put in to get that customer can be quickly diminished if there’s no effort to keep them with you. Incorporate surveys, follow-up emails, and attention to consumer reviews to understand how your current customers feel about your product. Talk through the feedback with your team. Provide solutions of how to improve.
The customer journey is just that, a journey. It means giving dedicated effort all of the time to ensure the customer relationships you have are protected. As we approach the biggest shopping time of the season, when all eyes are on brands, make it a point to refine your customer service strategy. Learn from mistakes and find ways to perform better.
When you take care of those who are loyal to you, it makes a difference for how long and how far they’ll stick with your brand.