Customer Lifetime Value

Almost every company out there wants to grow their business & take it to new heights.There are two simple ways to grow your business:

To get new customers or focus on customer retention to improve the Lifetime value of a customer.

While most businesses resort to various strategies that solely focus on attracting new customers, leading reports suggest that the 2nd strategy is much more effective as it helps businesses generate a predictable & stable income.

Despite the benefits of customer retention, almost 45% of companies are still engaged in the first strategy i.e., to attract new clients whereas a meagre 16% of businesses indulge in reducing churn & retaining their customers.

So, what is customer lifetime value all about? How can you increase it? Read on to find out!

What is Customer Lifetime Value?

To put it simply, the lifetime value of a customer is the amount of net profit that your business can make from one customer throughout the time of his/her association with you. Therefore, a High CLV means more revenue& low CLV means less revenue for your organization.

How to Increase Customer Lifetime Value?

Increasing your lifetime customer value can be as easy as ordering a pizza or as difficult as making sweeping changes in your customer support process. So, making improvements in CLV is a dynamic process depending on the size of your business, your priorities, goals that you want to achieve & other important reasons.

Here are 4 Proven tactics that businesses can leverage to seamlessly improve their Customer Lifetime Value(CLV):

1. Enhance the Onboarding Experience

The first impression can be a lasting impression & the same holds true for all kinds of business such as large enterprises & Ecommerce ventures like Shopify stores.

If you don’t make a good first impression then you will have lost the best opportunity to not only attract the customer but retain him/her.

Data suggests that almost sub-par onboarding experiences result in almost 24% of customer attrition (churn). Therefore, you need to develop an onboarding experience that nudges your clients to come back for more!

  • Make the Onboarding Process Easy & Fast

This can be easily achieved by offering simple walkthroughs instead of complicated ones. You can also include tutorial-style or interactive how-to videos to assist customers during onboarding.

  • Tailor the Onboarding Experience for Users

If your new clients are supposedly coming from different countries or areas, then you should put in some efforts to personalize the onboarding experience. Try to take advantage of customer personas to create curated experiences for users.

2. Take Full Advantage of Email Marketing

Email marketing has been an old yet effective tool for every business. You can easily take advantage of Email marketing to improve CLV in two ways namely:

  1. Recommending items based on purchasing history
  2. Recover lost sales opportunities due to abandoned carts

According to leading reports, Cart abandonment rates can reach a whopping 80%. However, effective utilization of email follow-ups can enable you to seamlessly capture these lost sales & improve your customer retention rates & revenue.

If your Ecommerce venture like a Shopify store leverages a personalized Shopify Mobile App, then you can also send out curated abandoned checkout notifications to seamlessly reduce cart abandonments, improve sales & drive business growth.

Keep in mind that you don’t have to overcomplicate your email follow-ups or abandoned checkout notifications. Keep it simple & to the point!

3. Offer an Intuitive Ecommerce Mobile App

Most businesses including Ecommerce stores are slowly starting to realize that mobile apps can be one of the best ways to retain customers & improve the CLV. How?

Ecommerce mobile applications act as a virtual store in your customer’s mobile device which boasts of features like smart banners, push notifications, intuitive UI/UX, fast checkout experiences & more.

To put it simply, Mobile Applications offer convenient & fulfilling shopping experiences to all of your customers and who doesn’t like convenience?

So, make it a point to build an easy-to-use Ecommerce mobile app if you want to attract clients, retain them, recover lost sales, send curated notifications & leverage a whole lot of business-growing tactics.

4. Provide a World-Class Customer Experience

Customers expect businesses to have a robust customer service channel because if they don’t then the same customers will not hesitate to switch to your closest competitor. Leading reports do suggest that almost one-third of your clients will most likely switch to another brand if you fail to offer satisfactory customer experiences.

You can leverage the following tactics to seamlessly offer amazing customer experiences:

  • Multi-channel support

If you are simply offering email support whereas most of your clients are on Instagram, Facebook or Twitter, then you’ll have to take your business on the platforms to effectively serve your customers.

  • 24/7 Assistance

Fast response times & accurate responses are something that every customer expects. It’s not like your clients will contact you only during business hours. They might have some queries or complaints during odd hours. If you anticipate this and offer 24/7 support, then your customers will not only appreciate the help but will also try to stick to your brand.

These are 4 tactics that you can leverage to seamlessly improve the Customer Lifetime Value (CLV) of your business.

Mobile apps are certainly great tools to improve your CLV. Want to build one for your Ecommerce business? Why not try out Storifi? It offers free (no credit card required) & paid plans that empower you to not only build a mobile app for your Shopify business but deploy it on popular app stores (Google Play Store & Apple App Store) to seamlessly attract more clients, retain existing ones, enjoy more sales & drive your business growth.

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