Online shopping has been on the rise even before the pandemic: in the region, Latino consumers were already demanding more immediate, convenient and accessible consumption habits in order to purchase products that would otherwise be outside the comfort of their homes and work spaces. The result of this ongoing experience was the relevance of Customer Lifetime Value.
During the pandemic, there was no longer a choice. Ecommerce platforms globally grew by 27% proving to be an effective space for advertising. Promotional strategies at the online point of sale.
The advantage: everything is personalized and based on historical purchases and searches, something that brought into focus indicators such as CPA as part of the measurement of results vs. investment.
Customer Lifetime Value and its role in the omnichannel
Cost Per Acquisition (CPA) is only the solid base of a good strategy analysis. Today there is a valuable metric that must be integrated into our constant monitoring, one that will help you identify user preferences and generate comprehensive measurements to obtain accurate data on their consumption habits and result in a repurchase and long-term loyalty relationship with your brand or product. By this we mean Customer Lifetime Value (CLV).
But what is CLV about?
It is the total revenue that through a digital platform and / or ecommerce, you get from a customer over time. The analysis of costs, actions and frequency of a single user with your services or products. It is a good metric to measure customer satisfaction, loyalty and viability of a brand.
How to increase your CLV?
1. Keep customers longer.
Customer retention is about adding value. Develop personalized strategies for each user during the customer journey that focus on informing, educating, inspiring and meeting expectations rather than selling directly with something promotional.
Enhance content marketing to entertain and maintain attention between the frequency of purchases and orders. Segmenting customers by interests, tastes or preferences and personalizing the offers that reach them is very useful for this purpose; all these communications add to the shopping experience and strengthen the customer’s trust in the brand.
2. Encourage more frequent orders.
Sometimes it is difficult to make a user return due to the nature of some products or services, this makes motivating the frequency of such orders a key point for your sales. First is to understand the reason for abandonment during navigation at each touch point. Reinforce those abandoned products in the shopping cart and elevate the shipping and packaging experience once the transaction is confirmed. Promotions such as coupons for the next order are also great for speeding things up.
3. Incentives to increase the average ticket.
Commercial packages easily make a shopping cart more robust because they represent a unique opportunity. Offers that represent a group consumption or something additional that is perceived as an added value to the base product. Something very useful is to categorize products by use or seasonality, not only by type or menu section, with this you can place several accessories and complementary items to the main product.
Marketing automation
Technology plays a very important role as well. Thanks to the advances and results that can be obtained with marketing automation tools, you can personalize every touchpoint with users, such as automatic mailings at the most convenient points of your consumer’s customer journey.
Strategic partner
Now with the evolution of Google Analytics 4, you can optimize these results through a digital partner to guide you in this customization of each touchpoint of the customer journey for a better experience with your users and achieve the goal of building a long-term loyalty relationship.
Connect each digital point where your brand has presence and interaction with your audience to synergize efforts, communication and strengthen the loyalty of your consumers over time.
LDM Solutions
Customer Data Platform
Extensive experience in CDP management, configuration and segment design for the personalization of the different stages of the consumer’s life.
Engagement Platforms
Expertise in advanced engagement platforms such as Braze and Leanplum.
Smart Data Management
Ability to interpret user behaviors to reclassify them and activate personalized communication for each user.
Progressive ROAS & Offline Conversion System
Ability to automatically optimize campaigns based on the lifetime value of your shoppers and implement advanced retargeting campaigns.
Dynamic Creative Optimization
Integration and configuration of advanced DCO campaigns with Criteo, AdRoll and other platforms.
Contact us and take your customer journey to the next level!