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Transforming The Customer Experience

Using In-Store WiFi Tactics to Increase the Customer Lifetime Value

Posted Jan 10, 2019 8:00:00 AM

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Business 101 says you need to bring in new customers and keep your old ones to succeed. But it’s the customers that stick around that have the most value for brands.

By keeping shoppers and clients coming back for more, you increase your customer lifetime value (CLV). This customer retention helps your brand make more money while spending less on marketing resources as returning customers spend more and are more likely to buy.

The rest of this post will look at you can focus on customer lifetime value and create in-store marketing strategies that help you keep buyers coming back.

What Is the Customer Lifetime Value?

It’s not uncommon for marketers to think in the short run when they sell to customers. They are so focused on making a certain promotional strategy work to hit their sales goals for the month that it’s hard to think about the long-term trajectory of customers. But, customer retention should be always be a priority.  

Customer lifetime value offers a look at the true value of customers and how much they mean to your business. Brands often use CLV to determine the health of their operations.

To calculate the customer lifetime value, multiply the average ticket per purchase by the number of times the customer shops with your brand per year. Then, multiply this by the average number of years a customer is with your business.

For example, if a hairstylist charges $50 for a cut and customers visit her monthly, then their annual value is $600. If the average customer stays with the stylist for five years until they move away or change their services, then the CLV is $3,000.

When that business loses a customer, they lose more than a $50 haircut. They lose $600 per year in revenue.

Thinking about customer lifetime value helps managers understand the true loss to the company and the long-term risks of not retaining customers and bringing new ones in.  

Use WiFi to Track New and Returning Customers

WiFi marketing can help you both calculate your CLV and take steps to improve it within your store. When customers sign on to your free customer WiFi, Spectrio’s system records the customer interaction and whether or not they are a new or returning shopper. This gives you an immediate idea for your ratio of new customers in your store.

From there, you can see within the WiFi analytics how often these customers return. You may have regulars who enter your business a few times a month or customers who only enter the store a few times per year.

Some brands break out their CLV by target personas. Losing regular customers means losing a few thousand annually, while losing a less-frequent shopper really only means a financial loss of a few hundred.

Once you have your demographics, you can use WiFi to boost CLV. There are a few ways you can grow CLV: increase the average ticket, increase the number of conversions, and increase the length that customers shop with you. The first two are the easiest.

Consider sharing coupons with returning customers for this or their next visit. Coupons increase the chances that a customer will make a purchase and they may actually spend more when they think they are getting a discount. You can create a WiFi landing page that customers see whenever they connect to the Internet. This simple step can change customer behavior and their relationship to your brand.z

 

Promote Your Customer Loyalty Program

Ecommerce retailers spend an average of 80% of their budgets on new customer acquisition, and just 42% of those businesses could even measure customer lifetime value. This statistic reflects trends across the retail world. Companies are too focused on the new, and they aren’t focused on appreciating what they already have.  

This is starting to change. Over the past few years, there has been a significant shift toward customer loyalty. Brands from Starbucks and Panera to the small sandwich shop down the street seem to have loyalty programs designed to bring you back to them. This is a result of business owners slowly realizing the value of existing customers.

Use your in-store marketing strategies to promote your loyalty program. You can encourage people to sign up on your WiFi landing pages, or highlight the benefits of becoming a loyal member on your digital signage.

You can also work to train your staff to discuss loyalty options with your customers. When they check out, make it easy for them to enroll in loyalty options, and let your staff explain how much they could have saved if they were already enrolled. This taps into the customer’s “fear of missing out” and makes them see the real value of participating in your customer loyalty program.

Showcase Your Customer Appreciation

Increasing customer lifetime value doesn’t have to be a complex process. Happy customers are returning customers, so make sure your in-store experience reflects how you care about customers.

This can be as simple as showing your appreciation through digital signage or thanking customers in your overhead messaging. Some companies host customer appreciation events or sales, or celebrate their birthdays and anniversaries to thank customers for keeping them in business.

TD Bank reports that 77% of customers like when brands show their appreciation. They also like celebrating the success of brands they like.

A few small steps to show that you care about the support customers provide can help you increase loyalty and develop and base of repeat customers who are happy to give you their business.   

Spectrio Boosts Customer Lifetime Value

Brands who work with Spectrio for their in-store marketing strategies can focus their efforts on the lifetime value of customers and clients. They can take the necessary steps to increase the average ticket and bring customers in more often.

To learn more about how you can use in-store marketing to grow your business, grab our free ebook that looks at how you can create exceptional customer experiences in your store that keeps shoppers and clients coming back for more.

Exceptional Customer Experiences for Retail Store