Every business wants to gain new customers and boost profits. But, acquiring new customers can be costly. Therefore, if you want to sustain your business, you need to know and build your CLV a.k.a Customer Lifetime Value. In this blog, let’s unwrap what the customer lifetime value (CLV) is and how to build it using your CRM software.
What is CLV (Customer lifetime value)?
Putting in simple words, customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. It comparatively costs you less than acquiring new customers. So, focus on retaining existing clients and increasing their lifetime value.
How CLV influences the brand image
CLV comes with another important metric and that is CAC (customer acquisition cost). CAC is the money that you invest in acquiring new customers. That can be advertising budget, offers, marketing, and so on. The logic here is simple. Satisfied customers over a long period of time can build good word-of-mouth referrals. Gaining new customers every now and then can bring you a good boost of customers temporarily. However, if they quickly switch, all your customer acquisition costs will go in vain. Also, the impression of not being able to retain your existing customers is far worse than not being able to acquire new customers. On the contrary, note, that even if you have a limited number of customers and they come back again for a longer period of time, they help you build a positive brand image.
How CLV helps
- The longer the lifecycle your customer brings during a lifecycle, the more revenue your business earns.
- Repeating customers help understand your niche market and analyze their purchasing patterns and behaviors.
- Based on CLV analysis, you can predict future revenue and measure long-term business success.
How CRM can help you build CLV
If you are in an education and migration business, you might have come across different CRM software. You might already know how a CRM can help you manage your business operating smoothly. But, are you aware that CRM software can also assist you in building your customer lifetime value?
Agentcis is a CRM software built specifically for managing and growing education and migration agency businesses. With Agentcis, you can unlock various features that can help you enhance your customer relationship so that it can build your CLV.
1. Instant response
Whenever your clients reach out to you, the first thing you need to take care of is to respond to them instantly. You can directly assign a counsellor within the system for a response. With Agenctis app, you can also view your contact details and reach out to them on the go.
2. Organize your clients
Agentcis comes with a “setting tags” feature. This feature helps you add the tags for all leads to organize them according to their various categories.
3. Set priorities
You can always view the chat history to see their previous interaction. This can help you set the priorities of your client’s needs based on their requirements.
Automation in Agentcis is a great tool for emails and reminders. You can never miss deadlines once you have set the automated reminder on Agenctis. It also notifies you of important dates. Further, you can automate birthday wishes, offers, and festive greetings. These gestures help your customers feel they are valued.
Referral Program in building CLV in your Education Agency
Well, it’s not always necessary for you to have a CRM system to upgrade your CLV. There are certain ways that you can build a better CLV in a less expensive way. So as a bonus we will be teaching you some good tips to create a strong CLV without costing you much. Let’s get into it:
A referral program is an excellent way to increase the CLV. The best part of a referral program is that it can be applicable to any kind of business. Many marketing experts believe word of mouth is the most effective way of growing brand awareness and setting up a referral program will do that for you. This is a very cost-effective way to improve your business revenue as well. It is because your customers will be talking about the value they received from you to others who are in need. Referral program will help you mobilize the base of customers into sales and marketing at minimum cost. So when your paying customers help you find more new customers then their CLV increases automatically.
Hence, CLV is all about how you treat your existing customers and how you can add value to their experience. If you can improve your existing relationship, you can increase your CLV.
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