This is part four of a five-part series about the four strategies for boosting your online business income. In this post I’ll give you specific tips for boosting customer retention.
You can find the first three installments in this series at the following links:
- 4 Surefire Ways to Make Money Online
- 5 Ways to Boost Web Traffic
- Boost Web Site Conversion, Boost Your Income
Increasing the Lifetime Value of Your Customers
Increasing customer retention is really about increasing the Lifetime Value (LTV) of each customer. In other words, how much money do you make, on average, from each customer over the time they are a paying customer.
This is calculated by adding up the purchases that each customer makes and dividing it out to get an average. LTV is a critical stat to know since it tells you how much money you can spend acquiring each new customer. If each customer is worth $200 to you, then even spending $100 to advertise and acquire that customer will still generate a profit.
That’s why so many businesses are willing to cut even on the first purchase made by a customer, because in the end they know that the total LTV leads to a healthy profit.
4 Ways to Increase Retention and LTV
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by Mike Denison -GUEST-
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