This holiday season, retailers have been using industry-leading data analytics solutions to maximize customer lifetime value (CLTV) with time-tested strategies. Check out our top tips for using e-commerce data to optimize your LTV pre- and post-holiday.
1. Focus on a B2B strategy in Q4
Retailers are excelling at generating revenue from high value customers by focusing their efforts on small business and enterprise accounts during Q4 this year. This translates into a great opportunity for you to increase your CLTV through cross-selling, upselling, and finding new products that complement yours perfectly to sell together or better yet integrate with them easily via API or other technologies.
2. Gift giving success is key
Last Christmas, 95% of the gifts were returned, leaving many retailers with unwanted inventory sitting in their warehouses. By optimizing for this holiday season, you can significantly increase your CLTV. One of the many ways to do this is to make sure your product assortment makes a great gift for your customers and is optimal for success on online retail sites.
3. Pick up new products that offer a more personal experience
When customers shop online, they value personalized experiences over impersonal ones. This means that e-tailers should give meaning to their products through messages and content while maintaining their branding and brand equity to create an outstanding digital experience throughout the shopping cycle.
4. Optimize for high-value repeat purchases
This year, the majority of eCommerce companies have seen earnings come in below their projections due to lower average order value (AOV) and revenue per customer (RPV). This can be attributed to low conversion rates and a decrease in new customers compared to previous years. To combat this, retailers must focus their efforts on LTV optimization instead of just top line growth and increase CLTV through maximizing AOV and RPV while minimizing customer acquisition costs.