Tagged in: customer

Business Comments Disabled

The Importance of Customer Success Stories

Customer success stories are a powerful tool for building your brand, creating sales opportunities, and building relationships with new and existing customers. They can prove that your product or service is worth the investment, alleviate potential buyers’ concerns about spending money on you and even help you uncover new revenue opportunities.

Customer success stories have been around since before social media was even invented, but they’re still incredibly valuable today — especially when used strategically in tandem with other marketing tactics such as blogging, email marketing, and social media outreach. Let’s take a closer look at why customer success stories matter so much in today’s business environment.

Drive new sales

Customer success stories can be used to drive new sales. A positive customer experience is always helpful in generating more customers, and if you have a lot of positive customer experiences, it makes sense that your marketing team would use them to promote the product.

They can be used to generate new opportunities. If someone has already invested money into implementing your product, there’s a good chance they want their investment to pay off by seeing results – so if you show prospective clients how other companies achieved these results using your products or services, they will be more inclined towards choosing you over competitors based on this information alone.

Customer success stories can also be used to generate new ideas for improving upon existing products/services through feedback provided by current customers who have implemented them successfully themselves. This means that even though the prospect may not buy right away, building up rapport could lay the groundwork for future purchases down the line once trust levels increase over time.

Generate brand awareness and advocacy

Customer success stories are a way to generate brand awareness and establish your company as an authority in the industry. By sharing customer success stories on your website, in blog posts, or even during a presentation at an industry event, you can build trust and credibility among prospects. Your customers will also be more inclined to share their own positive experiences with other potential customers. This will help you build loyalty in the marketplace while generating higher sales leads for prospects.

Create urgency for potential buyers

The importance of customer success stories is that they create a sense of urgency for your potential buyer. If a prospect has been using your product for six months and is loving it, they’ll be more likely to purchase someone who just started using your product. This is because the longer someone uses an app or software, the more familiar they become with it—and the more comfortable they feel using it.

As such, when presented with an opportunity to buy something new and different from what they already use (like switching from Adobe Creative Cloud to Canva), there’s less anxiety involved in making that transition compared to someone who hasn’t used anything similar before (i.e., switching from Microsoft Word).

Uncover new revenue opportunities

In addition to their obvious benefit in providing a way to connect with your customers, customer success stories can be used to help you identify new revenue opportunities. You can use your customer success stories in marketing materials, or even as a primary selling point for a new product or service.

Business Comments Disabled

Customer Lifetime Value: An Easy Guide For Beginners

Customer lifetime value (CLV) is an important metric for any business owner to understand the performance of their marketing campaigns and business in general. By understanding this important metric, you will be able to improve marketing campaigns, prioritize digital marketing investments and increase sales by producing better content for your customers.

What does customer lifetime value mean?

Customer lifetime value (CLV) is the total profit generated by a customer during their time with your company. It’s similar in concept to revenue, but instead of focusing on how much money you bring in, CLV looks at how much value they bring in. In other words:

  • Customer Lifetime Value = Total Profit Generated by a Customer during the period of their lifetime
  • Total Profit Generated by a Customer = The total amount of money spent by them throughout their relationship with your business

How to calculate CLV for your business?

First, you need to find out the lifetime value of your customers. This can be done by finding out how much they spend with you over some time or in one transaction. Once this is done, multiply the amount spent by (1/x) where x is the number of years a customer spends with you. For example, if a customer spends $100 on one transaction and it takes 3 years for them to do so then ($100 * 1/3).

Segmented customer lifetime value

Segmented CLV is the CLV of a segment of customers. It’s a calculation that can be used to determine the value of each segment, and it’s also used to compare these segments with one another. The main benefit of using this approach is that it allows marketers to analyze their customers based on multiple variables at once (such as location, gender, and age), which helps them understand why certain groups buy more than other groups or make more repeat purchases.

 

How to increase customer lifetime value

You can increase customer lifetime value by reducing churn, increasing the average order value, and increasing customer satisfaction. Reducing churn means keeping your customers loyal by providing good service and making sure they are happy with the products or services you offer them. Increasing the average order value means selling more to each customer in one transaction or over some time through discounts or special offers that are only available for certain items.

Increasing customer satisfaction means giving them a reason to be loyal to your brand through excellent service or quality assurance on products/services purchased from you as well as timely delivery of what was ordered by customers who purchased from you online (i.e., Amazon Prime). Finally, reducing costs associated with acquiring new customers may help increase CLV since it reduces costs incurred during acquisition efforts such as advertising campaigns that aim at attracting new customers into buying from your company.

Conclusion

While it may be hard to know the exact way to do so, it’s important to do what you can to increase customer lifetime value. Your future business success depends on it. For customer lifetime value, you should try to get as much revenue from the customer for their entire relationship. The customer lifetime value means that your customer purchases multiple services and in a manner that he spends more money on your products and services.