Customer Lifetime

16 Proven Strategies To Increase Customer Lifetime Value


Customer lifetime value is a criterion that shows the total revenue generated from the customers in a business during their engagement. CLV or CLTV is very important for successfully running a business. Just as without heart, body cannot perform its function, same case goes with the business as it cannot run without customers. They are considered as the main pillars of any business. Customers are of several types, some give losses, some of the customers give normal profit and the remaining are considered more profitable.


Step 1 : Average purchase value
Step 2 : Average purchase frequency rate
Step 3 : Customer value
Step 4 : Average customer lifespan
Step 5 : Customer lifetime value

Strategies to Increase Customer Lifetime Value in eCommerce

Create Demand by Putting Out Necessities

Having a good relationship with customers makes the business to understand customer’s daily life necessities and he produces those particular goods to increase their demand and in return generate revenue. There are some tips to generate demand for produced products:

  • Produce fresh, new, original and unfamiliar good to attract customers.
  • Introducing goods through advertisement.
  • Goods that furnish proof.
  • Price of goods lower than their substitutes.
  • Persistently innovation of merchandise.

Put your customers in the spotlight

A customers are the heart of businesses, therefore, their likes and dislikes must be kept in mind before making any changes or decisions to gain or achieve their trust and loyalty as it puts the business on right footing. Some recommendations for this purpose are as follows :

  • Include customers in your important business matters.
  • Ask for their advice on the launch of any new product.
  • Keep in touch with them.
  • Thank the masa token of appreciation.

Give customers a reason to celebrate

Interacting with customers in a right way makes them the happiest and also to enjoy your service which is better for the growth of any business. So, celebrations keep the bonds more stronger between people who hardly ever see each other, as you show uttering of gratefulness or thankfulness to your customers. Initially, it is proven beneficial to celebrate loyalty of customers by throwing them a party.

Make Doing Business Convenient

Convenience is a key to successful outcome of a business as customers always go behind easy and quick services or towards services or products with less hurdles. It is an important factor as it increases the gross profit and is also helpful for the customers in utilizing the services which is a brawny strategy for the expansion of business.

Concentrate on Quality

Customers are increased by gaining their trust and it is only possible when they become satisfied with your service. In that case, providing them with high quality goods will make them purchase again in the future. Super quality goods establish good business reputation in the market which increases the revenue of a business. So, it is suggested that before manufacturing of any product, factors influencing the quality of a product must be kept in mind and changes must be made according to them.

Know your Customers

KYC refers to know your customers or know your clients and it is an important strategy because establishing good relations with your customers help in understanding them better and also in verifying them which prevents fraud, black money etc, and saves the business from any disrupt or bankrupt.

Give Delightful Surprises

It is an approach to lift up the moods of customers by giving them gifts or surprises unknowingly to motivate them to work with you. This strategy leaves a positive impact on purchasers. For instance, “deal of buy1 get1 free” attracts and makes the customers joyful as they pay for 1 item only and get the 2nd item for free as a gift.

Personalize the Shopping Experience

Personalized shopping experience refers to maturing of products in such a way that they get developed keeping in view customer’s preferences, likes and behavior of buying to fully please them with the services of business. It is a strategy that directly aims at act of consumer’s consumption.

Follow Through on Delivery Promises

Everything in business being exact or definite leads to outstanding results which prove to be fruit ful both for the firm and customers. So, to come up with the same delivery method and also conveying stock on the very same place and time as told by the customers assists in gaining their trust and faith.

Allow For Multichannel Results

Making a new product is easy but getting people to know about it is a bit difficult. So, allowance for multichannel returns help the customers to know about freshly launched products in just a small period of small through different social media platform.

This strategy lends a helping hand to customers as knowing the product in a little while and also to business in instant advertisement.

Reward Customer Loyalty

Reward customer loyalty means giving the manful surprises, gifts and suitable deals in return of their purchase to thank them for their loyalty which strengthens the bond between customers and business organization, it also heartens the consumers to buy repeatedly.

Design Programs For Frequent Buyers

Designing programs is a feature regarded as a prize to frequent buyers to intimate them to buy again and increase sales of a business. Most common example is that McDonald’s and Starbucks etc. have designed a program in their apps from which customers order and in return receive stars which provide them free drinks or food.

Get Customers to Register

The main objective of a business is to increase sales through customers which is only possible if customers register themselves giving all the necessary information which helps the firm to know about their demand in a better way and they manufacture goods according to it and new changes can also be made keeping in mind their needs.

Show Your Appreciation

Showing appreciation is a good gesture towards clients as it makes them feel important and valued. It is shown by giving gifts, appreciation letters and complimenting them. It is a strong strategy as its prop the customers for choosing your business.

Provide Exclusive Offers

These offers are provided only to a few customers having certain potential and not available to general public. Exclusive offers are provided in the form of discounts and special deals for increasing engagement rate and profit too.

Create Coalition Programs

A coalition program is basically a form of partnership created between two parties working together for their common advantage which is to benefit customers and generate revenue. In such programs, customers stay loyal with the business as they enhance consumer’s satisfaction and their participation in the program.


For a business which is looking forward to increase CLV, these 16 strategies help them to do so. These plan of actions enlarge be trochal rate and generate revenue too.


What exactly is customer life time value(CLV)?

It is actually a metric that shows the total profit obtained from the customers during their entire relationship period.

How do I calculate CLV?

CLV is calculated by multiplying average order value with average purchase frequency rate.

How can I personalize the shopping experience for customers ?

Shopping experience of customers can be personalized by understanding their preferences, producing products according to their demand and providing them with discounts etc.

What’s the difference between cross selling and upselling ?

Upselling means convincing a customer to buy latest version of the product which they are asking for that is more expensive , while cross selling regards as convincing the customer to buy related items or services.

How does optimizing pricing strategy impact CLV?

Optimizing pricing strategy impacts CLV in such a way that suitable prices attracts customers to buy and increase business profits.