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.