This is a post from our CEO highlighting key strategies on how to identify your best customers and get more of them - check it out!
Founder and CEO of Great White Media Agency | Email, SMS & Retention Marketing Strategist Driving 50% Growth in 90 Days for DTC Brands | Klaviyo Certified | e-Commerce Growth Author
Want to boost your LTV? Here's a short excerpt from my book "The Ultimate Ecommerce Growth Playbook" that breaks it down: "The second reason why email and SMS are crucial is that they can increase your customers' LTV (lifetime value). LTV is also known as CLV or customer lifetime value. By increasing it, you immediately increase the viability and prof- itability of your business. Let's take this simple example. Your cost of acquisition (COA) to obtain a new customer is $50. Your product retails for $40 and costs you $20 to manufacture (COGS). If you sell this product once, you lose thirty dollars: $40 - $50 - $20 = -$30 If you sell it twice, you're still ten dollars down: $40 - $20 - $30 = -$10 On the third sale, now you've made ten dollars: $40 - $20 - $10 = $10 You will need to sell this product three times to the same customer before making a profit. Of course, this is a simplification, but it demonstrates the importance of increasing your LTV and the AOV (average order value). We look at the customer journey and strategically map it to email and SMS flows to accomplish this. As a result, we can now target the customer with relevant messaging based on where they are in the journey. We divide the customer journey into six stages: 1. Awareness 2. Purchase 3. Retention 4. Advocacy 5. Winback 6. Sunset Here’s what B2C (or DTC) businesses use email for according to Validity: - 66% use it to communicate with prospects 30% use it to capture subscriber data - 63% use it to build brand awareness - 71% use it to communicate with customers In my opinion, this is equally applicable to SMS. The first three bullet points are part of the awareness and purchase stage of the customer journey. The data collected in this stage can be used in the retention stage, which can help increase the LTV. You would be surprised that even businesses doing $10M+ don't have the customer journey figured out or optimized. Don't wait. Because if you do, you will be missing out on much revenue - and if you’re not profitable, chances are you will go out of business. With that being said, let me ask you these questions: - Have you or your team ever done a detailed LTV analysis? - Do you know what the LTV of your customer is? Do you know their historic LTV? - Can you predict their future spending? - Do you know the average days between purchases? - Do you know which marketing channel brings you the highest LTV customers? - Do you know the difference between historic, predicted, and total LTV? - Do you know who your low-medium, medium- high, and top 10% spenders are? If you don't - then you're flying blind. This information is essential for targeting the right audience with the right messages and offers to increase their LTV." Get the on Amazon to learn the rest and supercharge your DTC business in 90 days or less >>> https://amzn.to/48fkzzT Or DM me for a complimentary copy.
