Improving Customer Experience Key To Boosting CLV
The best way to achieve customer lifetime value (CLV) is by improving user experiences – at least according to the majority of the marketers polled for Econsultancy’s new research paper, carried out in partnership with Sitecore.
The study, titled “Customer Lifetime Value: Building Loyalty and Driving Revenue in the Digital Age,” gathered responses from nearly 900 marketers, with 53% working for client-side organisations and the rest for agencies, vendors or consultancies. It found that delivering a more relevant customer experience is what 64% of company respondents and 58% of agency respondents aim to achieve in the near future. Refining their data usage and improving personalisation were also among the tactics 52% and 50% of respondents hope to utilise in a bid to increase CLV in the future. One in two also said that gaining better customer insights may help boost CLV.
CLV, which is defined as the total worth attributed to the entire future relationship with a customer, does however seem to be a metric many marketers are yet to come to grips with, as only 42% of marketers said they were able to measure it.
Asked about the methods used so far for boosting CLV, 42% of company respondents said that improving customer service has proved the most effective technique in this regard. Next on the list came personalising interactions, as identified by 34% of respondents, followed by cross-selling/up-selling (29%) and using data more effectively (26%).
Meanwhile, single customer view (SCV – 32%) and customer experience management solutions/platforms (28%) were cited as the most effective tools to boost CLV.