How to Increase LTV

>> CLICK HERE TO HIRE OUR TEAM!

Are you wondering what’s holding back your eCommerce brand? Although they don’t realize it, many people forget about two-thirds of the necessary steps to growing a business.

Growing a business can be complicated, but you can simplify it into three simple steps:

  1. Get new customers
  2. Increase the value of your average sale
  3. Convince your customers to purchase from you again

Let’s break down each of these functions:

1. Customer Acquisition

In marketing, so many people spend all of their time on the first step: customer acquisition. While this is obviously a critical step, focusing solely on it will leave your business lacking.

“When you’re just starting out, it’s absolute survival. And you develop some bad habits there to think that all your revenue comes from new customers.” (10:16)

The truth is, the other two factors are wildly important as well!

While new customers are great, many companies have a large market of previous customers that sits untapped. For online businesses, customer retention and an increased average order value directly affect acquiring new customers. When you have more revenue coming in from prior customers and larger sales, you have more money to spend on finding new customers.

“The person that can spend the most to acquire a customer wins the internet. So, it’s all about who can spend the most to acquire the customer that’s gonna build your brand long-term.” (11:43)

2. Increasing AOV

As mentioned above, increasing AOV, or average order value is an ever-important, often-forgotten step in growing your business.

So, how do you do it?

Raising your AOV can be accomplished in several, often simple, ways. Cross-selling, up-selling, and bundling are examples of proven methods of boosting AOV.

In short, cross-selling is marketing another product or service to a customer that is purchasing a particular item. This is often accomplished through pop-ups and notes that say “customers also bought:” followed by a list of products that work well with the item being purchased.

Up-selling is the process of increasing the value of a product or service by adding features to it.

Apple does an impressive job of this on their website. When you purchase an Apple product, they continually offer additional features and specs for an additional charge. Before you know it, you have doubled your product’s price, and you are getting twice as many features.

The term “up-selling” can come with a bad connotation, but it doesn’t have to be sleazy! When approached ethically, it is a mutually beneficial process for both parties. Customers get all of the features and benefits that they want, and store owners can increase AOV.

3. Customer Retention

The second part of business growth that many people ignore is customer retention. Brands are continually looking for ways to gain exposure to new customers, but they miss a large market that has proven to buy the brand’s products.

How do you increase customer retention?

It seems obvious, but the key here is to convince customers that they need to buy from you again. There are several effective ways to do this.

Start by remarketing to your previous customer base. Offer discount codes to previous customers, or allow them exclusive access to new products. People love the opportunity to get limited-edition products!

Your packaging is another excellent way to convert one-time customers into recurring customers. When someone is impressed by the branding and packaging that comes with their purchase, they are more likely to buy from that brand again. You can also try using pamphlets or inserts in your packaging to cross-promote other products that customers might like.

Lastly, make your brand something that customers want to support. People love supporting a brand that they believe in and that provides value to them. You can accomplish this by having excellent customer service and a strong social media presence. When your content is funny, relatable, or elegant, your audience is more likely to stop and watch your videos.

If someone likes your brand and content, they are most likely to love your products as well.

Are you ready to scale your brand massively with these three steps?

>> CLICK HERE TO HIRE OUR TEAM!