Proper Data Management Can Increase Your CLV
It’s a lot easier to retain existing customers than trying to reach and convert new ones. This fundamental business practice allows a company in any space to sustain its operations, while new customers can accelerate its growth. To keep existing customers happy, businesses focus on creating programs that help increase Customer Lifetime Value (CLV).
Customer Lifetime Value is commonly referred to as a marketing program.
However, CLV is actually a business philosophy that includes the collaboration of multiple departments, stakeholders, and programs. All to ensure the business is able to grow its operation with the confidence that repeat revenue is coming.
While there are multiple ways to create and sustain CLV efforts, not many logistics businesses consider how data management plays a role in keeping customers satisfied. Let alone, surpassing their expectations.
Let’s take a look at how increasing your CLV can provide your growing logistics business with returning clients while you explore new customer retention ideas.
How Logistics Businesses Typically Increase CLV
There are several proven methods for increasing the satisfaction of customers. At its core, CLV is intended to accomplish three specific things:
Explore opportunities to increase sales per order
Warehouse giant Costco (well, it’s predecessor, Price Club, actually created a merchandising philosophy that created a treasure-hunt atmosphere. The goal was not to frustrate shoppers looking for that one item they need but to introduce that one or two small ticket items that they could use. This adds to the sales per order – and has created a merchandising philosophy that spread to all retailers in the past 30-years.
Increasing sales over time
Having customers purchase more per shop is the first step – having them visit your platform more frequently is the second strategy that can improve and increase CLV-related sales. One creative way to accomplish this is by implementing a strong target or email marketing program, that entices customers to shop frequently.
Reducing customers costs
At the end of the day, customers in every business prefer value over simple cost savings. If they have a choice between two similar products, the one that offers them the best ‘bang for their buck’ is the one they’ll likely add to the shopping cart.
How Data Management Helps Implement these CLV Strategies
The three strategies listed above is not rocket science or some magic formula for business success. It’s generally understood that if your current customers are buying more per shop, shopping more frequently, and receiving value for their purchases.
For those in the logistics industry – the way you connect with and process customer’s orders mainly depends on the quality and consistency of your data.
Here are some specific areas of focus that are improved with a strong data management program.
Businesses communicate with their customers through multiple devices and platforms. From social media, email, and text messages, to push notifications and desktop alerts, more logistics companies are starting to invest in communication automation solutions that help to expedite connecting and educating the customer.
However, when data is old, outdated, or simply fragmented, these communication efforts will often prove to be fruitless. Integrating a strong and efficient data management program will remove damaged files, ensure data is updated – for improved communication with customers.
Structuring your programs, sales, promotions, and marketing initiatives to meet the needs and desires of customers is a challenge – even for the most experienced marketers. However, having access to correct data helps all decision-makers review and structure these programs. This is yet another area that can be improved and streamlined with a data management program.
If you’re able to integrate a data management program, from scrubbing data periodically to using advanced software to help organize and update information, your chances of improving customer satisfaction or extending your CLV vastly improves.
An exceptional resource for data management programs is experienced third-party logistics companies like Redwood Logistics. We stay on top of the latest technology solutions that improve the efficiency of supply chain and logistics-specific businesses.
If you’d like to explore creative and effective ways of improving your CLV through data management solutions, contact Redwood Logistics today.