This is the profit that a client brings during the entire time of interaction with your brand. Analysis of this business metric provides the following benefits: identifying the most loyal clients, optimizing retention efforts, understanding client behavior when making a purchase.
How to calculate
LTV = Length of interaction with the customer * Average profit from one customer over the period
where the Customer Engagement Duration metric shows how long a customer is an active user of a product or service.
How to improve the indicator:
Email newsletter, loyalty program, retention management (make interaction with you as convenient as possible and add an element of personalization), upselling. In email newsletters, it is kuwait mobile phone number list important that the letters are useful and regular. To increase loyalty, you need to personalize your communication and attract with marketing offers. The Passteam service knows how to collect customer data and use it wisely for business needs.
6. Customer loyalty and retention
The Customer Loyalty and Return Metric CLR evaluates a company's ability to retain, i.e. maintain long-term relationships with a client. The profit from existing clients is higher than from new ones.
How to calculate:
CLR = (Number of customers at the end of the period - Number of new customers during the period) / Number of customers at the beginning of the period
How to improve the indicator:
Nowadays, it is not enough to simply thank a client for choosing your beauty salon or restaurant. It is necessary to make additional efforts to encourage loyal visitors to your establishment. It is convenient to thank a client for choosing your business using loyalty programs. They not only increase the average bill and the share of returning clients, but also turn them into loyal ambassadors of your brand. Many clients choose a stylist or hairdresser based on a personal recommendation or they simply like their friend's hairstyle and want to do the same for themselves. The average bill increases due to the fact that clients want to maximize the points they earn.
Companies using Passteam increase customer retention by up to 23% through ease of use of the loyalty program and personalization of advertising campaigns.
Passteam will help your business with data collection, loyalty card digitalization, lead generation and proper mailings. As a result, this will lead to customers coming back more often.