Here are some best practices on how you can upgrade your CLV:
Repeat Purchase Campaign
If you have your own eCommerce store, you can send post-purchase thank you emails to your customers who made the initial purchase. You can also send a cart abandonment email if a recently purchased customer still has items left in their cart. This will encourage him to buy more items from your store.
If a new customer is interested in making a second purchase, they will be more likely to make a third purchase, and so on.
If you are a Lazada/Shopee seller, you can send vouchers to first time buyers as a way to persuade them to make a second purchase.
As a Lazada seller, you can also use Lazada CEM to send messages to shoppers who have left some items in their cart and then remind them to complete the purchase. You can talk about the benefits of your product or how completing a purchase now will benefit them (i.e. ongoing promotions, discounts). For a more detailed overview of Lazada CEM, you can check out our post on Lazada CEM – An Introduction to Engagement Management At Lazada .
Refill campaigns are perfect if you sell consumables like pop tarts, alcohol, pet food, paper and more.
An example of a backfill campaign is when you send a customer an email thanking them for their first purchase along with a discount code that the customer can use on their next purchase. To make sure that the customer can use the discount and make a second purchase, you can add a short survey that asks the customer if he or she wants to receive the code today or in a month or so.
When a new customer makes a purchase, we recommend sending them a personalized recommendation as part of their thank you email.
So if someone buys a camera from phone number list your store, your upselling options could be a camera bag, different sized camera lenses or a camera case. Since these items are often purchased together, recommending these items increases your chances of buying both from that customer.
If you are a Lazada or a Shopee seller, the upsell occurs in the recommendations widget of each platform. Shopee and Lazada can do this through consumer behavior within the platform.
Calculating Customer Lifetime Value
To calculate your CLV you can use this simple formula:
CLV = (average purchase value) X (number of times a customer buys each year) X (your average customer relationship in years)
So if you sell shoes online, here’s how you would calculate the CLV for one customer:
$200 per pair of shoes X 4 pairs per CMO Email List year X 3 years = $200x4x3 = $2,400
Suppose one of your other customers is a mother buying shoes for her toddler.