5 Ways to increase $ and lifetime customer value from existing clients apart from simply increasing the price
Following on from the previous post about the importance of email marketing let’s dive straight into some ideas on ways to provide value:
It’s much easier to nurture existing clients rather than constantly be searching for new ones. Wouldn’t you rather create a meaningful relationship than a series of blind dates?
Some ways to increase the lifetime value of a customer (LCV) aside from just increasing the price of your offering
(1) UPSELL CUSTOMERS
Rather than being linear with your offering you need to find solutions to their bigger problems by upselling them into a higher priced offering packed with way more value and deliverables. The key is that it needs to be authentic; don’t just pin them to the wall for things they don’t genuinely need.
(2) ORDERBUMPS
Rather than upsell them into a whole new offering look to add a smaller ‘add on’ to their order… like the convenience items located at supermarket checkout. They still have value that will help them and the key here is that it needs to be easy and it’s often presented as they checkout. E.g Purchase an ebook for $49 and at checkout be presented with ‘done for you social media templates’ for $15. Suddenly a $49 order is a $64 sale.
(3) DOWNSELLS
Although this is actually getting less upfront $$ it’s actually a huge trust building exercise. It’s about providing the right solution for the customer. Successful businesses more often than not are built around relationships and what a way to build one that’s genuine. The hope here is that it will lead to a longer relationship over time when they continually reinvest and they also become your biggest advocates because they trust you and feel heard and respected. Advocates mean you spend way less money and time marketing.
(4) NON-COMPETING OFFERINGS
So often I see businesses offering multiple solutions to the same problems with maybe a degree of variance. Not only does this confuse the customer but they often only buy once as they feel they have the solutions/best product/best service already. The key is to organise your offerings into an ascension model whereby you take them “up the ladder” in a very natural way as they need each new solution.
For example they start with a $25 ebook on ‘cooking with 8 ingredients or less” – they loved the recipes so much that they decide to sign up for a recipe membership for $78 per month called “uncomplicated and nourishing” where they receive 3 new recipes a week, a goodie bag of provisions each month and a great community of locals sharing easy dinner ideas. Next on the ladder is a 2-night retreat at a luxury venue for novice foodies to cook, relax, drink wine and do yoga for $1980.
Instead of selling 5 different eBooks with similar themes and multiple workshops where it’s unclear where a client would start there is a clear path to working with you more and more and as they progress on the investment is higher.
(5) SELL
Get comfortable with selling. Get comfortable with solving and providing solutions to their problems that support them! It isn’t just about seeing $$$ in your bank – it’s about creating an incredible service/product that will solve their issues, increase their revenue, give them more time etc. You are doing them a disservice if you are not showing them how you can help them. Imagine a doctor just writing you a script for the disease you googled your way into without any blood tests , questions or selling you the opportunity of better life and wellbeing.
Want to work out the best ways to set up your offerings in an ascension model, market them correctly or find gaps in your offerings to increase the LCV?
Click the link below to book a business strategy session.
