Customer Lifetime Value (CLV) is calculated based on how much net profit your business can get from one customer over a period of time. But in the world of retail, knowledge is only half the battle. Instead, retailers look at CLV as a data point to better understand how to engage customers based on how long-lasting and rewarding they may perceive their shopping journeys to be.

Some of the other measurement parameters include average purchase value, average purchase frequency, average customer lifespan, average churn rate, etc.

Why is it important to calculate the Customer Lifetime Value?

  • Maximize ROI of technology investments across sales, services, and collections
  • Reduces future customer acquisition costs
  • Strengthens market segmentation for higher campaign outreach
  • Promotes contextual up-selling and cross-selling
  • Creates more brand loyalty by delivering unexpected premium experiences

A modernized e-commerce store is a moment of truth to improve the CLV across different market segments. With Magento, retailers get all the e-commerce firepower to build long-lasting customer relationships while increasing sales conversions.

With its future-ready UX, a retail brand can deliver personalized experiences to customers based on their perceived value. Magento ensures smooth online store navigation without sacrificing the latest features and third-party integrations that customers need to expedite their shopping journeys.

“202 Magento users are in the internet Retailer Top 1000 list.” – Magento.com

How to increase customer lifetime value using a Magento e-commerce store

Turn customer feedback into actionable insights

Many retailers underestimate the importance of asking for and receiving customer feedback through the online store. In reality, it gives them a clear picture of what customers think about a specific product/service, how they feel about a competitor, and where they prefer to engage with your brand. Using these data insights, retailers can create targeted campaigns for customers who have a high propensity to purchase more, thereby increasing the overall CLV.

When you build an e-commerce store with Magento, you can quickly add a ‘Feedback’ button on every webpage. You can also customize the feedback questions based on future business goals or current growth strategies. As for customers, they get a simplistic yet professional-looking interface to provide their feedback.

Personalize the shopping journey when it matters the most

Personalization can unlock the type of shopping experiences that bear a tremendous impact on CLV. One could even argue that in 2021, there is no other choice – considering that the average online shopper has already been experienced product and service personalization while booking flights, streaming movies, or ordering food online. Hence, every recommendation on what they should do next or where they could go must be driven by AI-powered insights.

With the Magento personalization extension, you can easily track user preferences to showcase customized banners, offer product recommendations, and streamline cross-selling and up-selling strategies. Magento also empowers you to enrich your product page with information about the best-selling products, recent buyers, etc.

“58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience” – eMarketer

Create meaningful loyalty programs

A smartly laid-out loyalty program can strengthen the emotional bond between a customer and a retail brand. It incentivizes their purchasing prowess by giving them access to exclusive shopping perks. While a standard discount may attract the customer’s attention into completing a one-off purchase, personalized loyalty programs like redeemable points programs, VIP access to events, and cashback incentives can significantly increase their lifetime value.

The Loyalty Program extension for Magento equips you to configure flexible conditions for each level of your brand’s loyalty program. You can set rules by factoring in the order volume, purchase history, and cart attributes. It helps establish specific privileges for a customer so that they are instantly rewarded upon committing to a particular action.

Six more ways to leverage Magento and boost CLV

  1. Reinvent customer service by centralizing support operations, offering 24/7 support through chatbots and virtual assistants, enabling omnichannel service resolution regarding delivery tracking, payment confirmation, cancellation, etc.
  2. Create personalized marketing content that provides addresses unique pain-points of customers
  3. Motivate inactive customers by tailoring discounts and one-off coupons on meaningful occasions like anniversaries, birthdays, etc.
  4. Make the onboarding process a lot more seamless by giving customers easy access to how-to information that may extend their shopping journeys on your Magento store
  5. Launch and manage your retail storefronts across all popular social media platforms and grow market mindshare by running targeted ads and automatically updating product information
  6. Unify physical and digital store experiences by providing curbside pickups, in-store deliveries, etc.

As a leading Magento Enterprise Implementation Partner, Aspire Systems offers a comprehensive set of Magento services. Our next-generation AI-powered Commerce Cloud can put you on the fast track to recommend products, personalize content, and trigger tailormade Magento-powered shopping experiences.

Ultimately, we help you deliver personalized and unified retail experiences that differentiate your brand from the competitors allowing your customers to enjoy front-row seats to experience it from your e-commerce store, which can increase their lifetime value in the long run.

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Recommended Blogs

  1. Six Reasons Why You Should Choose Magento to Launch Your Global Stores

  2. The Ultimate Checklist to Create the Perfect E-Commerce Site Using Magento

  3. Create Powerful Commerce Experiences with Magento

 

 

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