Better Customer Lifetime Values - Another Benefit of Customer-Centric Marketing

One of the key benefits of adopting a customer-centric marketing approach is that your customers tend to stay with your company longer and spend more money with you. This intuitively makes sense. If you put the customer at the center of everything you do, they are going to be happier. And a happy customer tends to be a more loyal one. Customer-centric marketing lets you create deep and meaningful connections with your customers by giving them what they want and crafting your messages and offers to address their specific needs. These stronger ties and more relevant communications result in stronger loyalty and keeps your customers coming back long after their initial purchase. This results in a much higher customer lifetime value.

In a previous post, we talked about how you can use your data to develop a customer-centric strategy. Determining your customer lifetime value (CLV) is where all that data is feed into your predictive analytics algorithms . According to i-scoop, "using the customer life cycle and customer lifetime value offers several benefits, among others regarding budgeting, segmentation, prioritization and different circumstances where the “health” of the organization can be forecasted – and improved." And it can be used to help figure out your marketing ROI. With a good predictive analysis, you can determine what those figures are and which customers they apply to.

Generating positive reviews and word of mouth also increases your CLV. The idea of customer-centric marketing is to look at the needs and wants of your customer and put them at the forefront of everything you do. By focusing on the customer, you know what they want, how they want it and when they want it. The better you are at providing those things the more likely they are to not only remain loyal, but to tell others about it. Once a customer has made recommendations about you to others or publicly posted positive reviews, they are more likely to want to show they were right in making those recommendations. This means they will come back to you and spend more with you – creating a higher customer lifetime value.

Keep your customers happy and they'll keep coming back. It's really that simple. A customer-centric approach to your marketing and your company culture will make that happen. And if you're looking for ways to connect with your customers, here are 24 ways you can.

Mike McClure