My name is Austin Brawner, and my purpose is to help eCommerce entrepreneurs build wealth and live more fulfilled lives. You can expect weekly interviews with world-class eCommerce operators, deep dives into what's working right now, and a refreshing break from the "crush-it culture" plaguing our industry. This podcast will change your perspective on building a business, and, hopefully, change your life.
http://www.ecommerceInfluence.com
192: Tactics for Increasing Customer Lifetime Value (and How to Measure It)
Your customers are worth more than what they purchase from your store today.
If you can retain them as a customer over time, you can gain more profits for your business.
This week, Andrew and I have a meaty, and sometimes conflicting, conversation on customer lifetime value (LTV). We start by breaking it down with the basic definition and then share higher level strategies for how you can increase customer LTV, as well as some tactics you can implement today.
Enjoy!
Episode Highlights:- 4:02 How to measure customer LTV (and why it’s difficult to do).
- 5:52 The first question Andrew has his client’s answer when they ask about LTV.
- 7:39 Calculating retention rate: why you can only do it if you have a subscription business, and what to look for if you don't.
- 8:37 The 3 metrics to increase in order to improve LTV.
- 10:17 What Native Deodorant is doing during their checkout process that’s driving increased customer LTV.
- 13:08 The benefit of a subscription business and why you should consider it, even if you don’t think that model is right for you.
- 18:01 Andrew's view on how lifetime value can increase by finding out clients motivation points.
- 19:04 Why Austin cautions against giving using surveys and VIP customer discounts as a way to increase LTV.
- 20:52 The number one thing Austin now believes is the best option for increasing LTV.
- 22:21 How utilizing value-based lookalikes and bid optimization on Facebook can increase LTV.
- 23:24 A Facebook tactic for increasing LTV that most people don't know exists.
- 24:33 A trend Austin believes is going to be very successful for companies in the future.
- 25:22 Additional Facebook and email tactics for increasing LTV.
- 28:25 Why cost of acquisition prices are going up and what you can do about it.
- 31:41 How to boost LTV on the next re-bill using Recharge.
- Wilson Hung’s Blog Post on Customer Lifetime Value
- Episode 178: You’re Treating Your Customers Equally (And It’s Costing You Money)
- Native Deodorant tweet
- Dynamic Product Ad on Facebook
- ReallyGoodEmails.com
- ARPU
- Recharge App on Shopify
- Foxwell Digital
- Brand Growth Experts
- Review or subscribe on iTunes
If you liked this episode, you’re going to love the Brand Growth Experts Membership. It’s a community of top ecommerce business owners and marketers who I coach one-on-one to help scale up their businesses. Together we’ll create a plan that will help you scale up your business, and then I’ll help you execute it.
If you want to make sure you’re growing as quickly and sustainably as possible, click here to learn more. Hope to see you on the inside!
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