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Increase the Client Value

Increase Customer Lifetime Value with the Right Strategies

Client lifetime value (CLV), is the net profit your roofing business is projected to make from maintaining a relationship with a typical customer. When it comes to increasing CLV for your roofing business, there are three highly effective strategies that you can use. Implementing at least one of them will ensure that you see your customer loyalty and customer retention rates rise in the near future. Let’s look at each one in a little more detail:

Increase the Number of Sales for Each Order

Increasing the number of sales for each order a customer makes is the first strategy you should pursue. This involves convincing your customers to spend more on each transaction than they normally would.

Increase the Number of Sales Over Time

Closing a sale is a major part of turning a prospect into a paying customer, and the more customers your roofing business closes, the more your CLV increases. This second strategy targets multiple transactions at once while the first strategy targets a singular transaction.

It is common knowledge that attracting new customers costs a lot more than it would cost to retain your existing customers. This is why working hard to get repeat business from the right customers is a worthwhile endeavor.

One of the biggest reasons customers leave a business is because they didn’t like the customer experience. For that reason, your roofing business should always strive to improve the customer experience. You can’t achieve and sustain customer loyalty if you are not always looking for ways to improve customer experience. The best way to do this is to get it straight from the horse’s mouth by setting up systems that enable you to capture customer feedback on a continuous basis.

A small difference that makes a huge impact in this area is to switch from calling people customers to calling them, clients. When you call them clients, it gives them the impression of a long-term relationship with your roofing business. When you call them a customer, on the other hand, it implies that you are interested in a one-and-done transaction. Calling them a client changes their mindset from short-term to a long-term relationship.

Minimizing the Cost of Servicing Customers

Lastly, reducing overall business expenditure when servicing your customers is another effective way of increasing CLV. Whether it is packing and shipping products or helping customers with any issues when they call, you should work to reduce all costs. As you lower the cost of servicing each customer, you will discover that your roofing business’ bottom line will increase. This is because you’re getting more value from each customer.

Turn the Strategies into Action Plans

Knowing the strategies that increase CLV is one thing, but you also need to know how to turn them into action plans. You need to ask yourself: “How am I going to implement these strategies?”

While this might seem difficult to figure out on the face of it, you will soon find that there are many tactics you can use to achieve this. Overall, you should be able to improve CLV by improving customer experience.

Personalization

Gone are the days when standard customer experiences were a thing. Once businesses realized their ineffectiveness, they abandoned them, leading to their extinction. Now the future of business success lies in personalization, which is something that is believed by 94% of business owners. Basically, personalization is the act of creating a product or service that meets the individual needs of customers. These days, almost all organizations are investing in personalization.

If you want to make sure that your existing customers stick with you for the long haul, then personalization is something that your roofing business needs to take seriously. Through personalization, you can show your current customers that you have understood their needs. This makes them more likely to keep giving you business since they have more confidence in your ability to deliver.

Customers will most likely spend more on your business when the customer experience is personalized. And, interestingly enough, 20% of your current customers are responsible for 80% of your future revenue, according to industry professionals. It all boils down to making your clients feel important to you. This will ultimately give you a competitive advantage in a way that truly matters.

Communication

Constantly communicating with your customers can help you increase customer lifetime value over time while simultaneously increasing sales. Over time, brand advocacy and brand loyalty will increase if you focus on building and sustaining relationships with your customers – that is the key to creating a strong brand. To that end, you need to start building brand trust by meeting (or exceeding) customer expectations, delivering on your promises and keeping in touch with them consistently.

When it comes to increasing CLV through communication, email marketing is one of the most important tools in your arsenal. For example, you can use email campaigns to offer special discounts to customers on their anniversaries and birthdays. You can use email to target them in a number of creative ways – you just need to think outside the box. You can also use social media to your advantage to extend the reach of your communication efforts.

A vital component of communication is customer service. Increasing customer lifetime value can prove to be difficult if the communication between your customers and customer service is poor. Give your customers a variety of options when it comes to contacting customer services, such as phone, email and live chat. You should also extend the hours of customer service to make them more available to customers. Customers are rarely satisfied with customer service that only operates during the standard working hours since they live in a world that operates 24/7.

Increase Your Referral Rate

Defining Referral Rate

Now we are going to talk about referral rate, something that is important to increase customer lifetime value. This is the percentage of purchases from your total purchases that come from referrals. For example, if you have 10,000 purchases and 100 of them came from a referral program, then it means your referral rate is 1% (10 / 10,000 x 100).

How this works is that you have a referral link. Then one of your ambassadors shares this link through various digital marketing channels, such as social media platforms, blog posts and email. Then a friend clicks on the link and purchases your product.

Something we realized is that referral rates usually stabilize after a period of six months, according to our benchmark projections. These industry benchmarks are representative of the average referral rate that was achieved by our users when they used their referral programs over a six-month period.

Ask Satisfied Customers for a Referral

Sometimes, if you want something, all you have to do is ask. There are many methods you can use to ask you’re satisfied customers for referrals. You can send them a message on Facebook or LinkedIn or drop them an email or even write them a traditional letter and send it via post.

While you can also ask them by giving them a call, asking them in writing is usually better. A written request usually gives the customer enough time to think about their response. They need to decide whether to make a referral and how they will do it if they decide to go through it. And if you catch the customer at a bad time when you call, they are more likely to tell you no.

Exceed Customer Expectations

Meeting the customer’s expectations is something that’s constantly taught to young entrepreneurs. But this cannot happen unless you are aware of the customer’s needs. You can figure out who your ideal customer is by conducting some market research. However, this is not something you should do once – you need to keep on doing marketing research and updating what your idea of the perfect customer is.

So when do you work on exceeding the customer’s expectations? Only do this when you have figured out what they want and how you can deliver it to them consistently. This involves going above and beyond for the customer and not just sticking to the basics. For instance, when a customer orders something, don’t just deliver it on the due date, but deliver it a few days earlier. You can take a cue from how Amazon does it. It usually takes them 24 hours to make a delivery. This is what makes customers likely to use them again, and it’s something that very few retailers have been able to replicate.

Take away

Coming up with strategies for the long-term and tactics to implement them in the short term is vital to seeing your customer lifetime value rise. To increase your CLV, you need to test the strategies right away. This can give you a leg up over your competition since not many companies take customer retention seriously. Your competitors have probably fallen behind and are inadequately invested in implementing any CLV tactics, putting your roofing business way ahead. This is why you need to make customer retention and loyalty a priority right away.