The Secret to Boosting Customer Lifetime Value with Shopify Plus

Determining your business’s future success isn’t always easy, but some things can help, such as customer lifetime value (CLV). Using CLV, it’s possible to discover how successful your business could be, and it looks at how much each of your customers is worth.

It considers how much profit you will make from a customer over the entire time they shop with you, determining how valuable they are to you as a business. CLV is a key part of deciding how much you should spend on getting new customers, as you can see how much value they will bring to your business over their time with you. This also helps you know which customers to focus your time and budget on. In this blog, we look at the importance of CLV and how you can boost it using Shopify Plus.

The Benefits of CLV

A range of benefits come with CLV, such as boosting repeat sales and brand loyalty. Knowing your business’ CLV lets you focus on attracting the most profitable customers. With CLV, you can determine which customers spend the most at your business. You will know what products they like and what products they value, and you can tailor your marketing efforts to this. CLV allows you to track the number of sales per customer, and then you can work to increase this by encouraging repeat sales. This leads to repeat revenue. 

 

If you use the right CLV tactics, you can increase customers’ loyalty to your brand. This can be done via loyalty programs, referrals and excellent customer support. Loyal customers often spend more than first-time, one-off customers. A profitable customer spends with your business without you having to spend a lot to acquire them. This is where effective marketing and advertising come in. CLV can help you to maximise how profitable a customer is. 

How to Boost CLV with Shopify Plus

It doesn’t matter if your CLV isn’t quite as high as you would like, as there are several ways to boost it. Below, we have listed some key ways of increasing CLV, all of which can be done with an ecommerce store built using Shopify Plus.

 

  • Set Up a Loyalty Program – Many companies have a loyalty program, and with good reason. A loyalty program is an effective way of increasing revenue, retaining customers and turning a one-off purchase into a returning one. It’s a way to encourage customers to stick to your business rather than going to a competitor, as there are benefits in doing so. There are many different types of loyalty programs to choose from – you could offer points to spend another time, discounts, cashback and free products – but all of them work roughly the same way. It’s a way to show loyal customers you value them and reward them for their loyalty. 

 

  • Make Returns Easy – When someone orders something online, they want to know that returning the item is straightforward. After all, there is no guarantee that they will want to keep it. By making returns easy, you encourage people to shop with you again. If organising a return is time-consuming and complex, it’s likely that they will simply shop with someone else in the future. They won’t want to risk having an annoying return in the future. There is a range of apps aimed at managing returns, many of which can be integrated with Shopify Plus.

 

  • Improve Your Customer Service – Good customer service is an integral part of boosting customer lifetime value, as it leads to a better experience for your customer. Someone is more likely to return to your business if they enjoyed their experience with you before, which boosts CLV. There are many ways to improve your customer service, including offering multiple forms of communication, as not everyone wants to make a telephone call. Being active on social media, having a chat feature on your website and replying to emails quickly is key. Customers are more likely to become lifetime customers if they find it easy to get in touch.

 

  • Upsell Your Products – Upselling a product encourages customers to buy an upgraded version of something, to purchase a high-quality version. Cross-selling is also used in the same way, which persuades customers to add other items to their order. The aim is to make a larger sale and persuade the customer to spend more money, increasing your profit. Upselling and cross-selling are used for customers who are already making a purchase, not those who have yet to do so. This increases CLV by increasing the average value of your orders.

 

  • Utilise Social Media Marketing – Social media marketing is an effective way of reaching a large online audience. It helps customers to understand who you are, what you do and what you have to offer. Plus, social media is a key way of directing people to your website in the hope of turning them from leads into sales. With social media commerce, people can now buy via a range of social media platforms, and not having a presence on them could mean that you’re missing out on sales. This boosts CLV by making shopping easy for social media users and encouraging them to shop with your business again.
Shopify Plus at Quickfire Digital

At Quickfire Digital, we offer a wide range of ecommerce services, including working with Shopify Plus. We have worked with many businesses to give them a much-needed ecommerce boost. From designing and building websites to helping businesses boost customer lifetime value, you can rely on our talented team. To find out more, get in touch with the Quickfire Digital team.

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