How to Maximize Customer Lifetime Value Through Relationship Building
If you’re in the business of getting rich quick by churning and burning customers while focusing solely on acquisition, you’re in the wrong place.
Every month on SamCart, there are sellers pulling millions of dollars in revenue – and each one of them places a strong emphasis on customer retention.
Because, even though only 11.81% of purchases are made by repeat customers, they amount to almost 44% of total revenue made on SamCart.
We separate the everyday hobbyist creators from Creator CEOs here, and the former is only interested in acquiring net new customers. The latter believes that every new transaction is the start of a long and fruitful relationship. Maximum lifetime value should be rarely achieved in the first interaction.
“We Believe Customers Are For Life” is law 16 of the18 Laws of the Creator CEO. If you want to level up from the everyday hobbyist to a Creator CEO, grab your own free copy of 18 Laws of a Creator CEO.
First, let’s dive into Law 16: We Believe Customers Are For Life.
Looking Ahead: The Road to Building a Digital Empire
Imagine you could only acquire 100 customers over the span of your business, and these 100 customers were responsible for driving your bottom line. You’d probably treat them differently – you’d get to know them personally, create products and services that fit their needs, and constantly iterate on new ways to win back their business.
A Creator CEO isn’t concerned with one-off purchases in the short-term. Sure, those create profit, but they aren’t the backbone of your business. Repeat customers are.
Your customers aren’t just names on a spreadsheet or in a CRM. They have ever-evolving needs, interests, hobbies, questions, and desires. It’s your job to create value. Value then creates sales.
Practice the law of “We Believe Customers Are For Life”
Make these three practices a habit in order to become a Creator CEO or maintain status throughout the lifetime of your business:
- Treat each customer as a potential lifelong partner, and make it your goal to build a foundation of trust and respect.
- Focus on building sustainable and profitable digital empires that stand the test of time, and prioritize long-term relationships over short-term gains. Create value for every customer, at every stage of their life, and adjust what you’re selling to meet their unique needs.
- Remember that your customers are not just numbers on a spreadsheet, and they deserve respect and attention all the same.
Level up to Creator CEO with The 18 Laws of a Creator CEO
When you click here to download your free copy of 18 Laws of a Creator CEO, you’re one step closer to building, scaling, and maintaining the business you always dreamed of.
Remember: Everyday hobbyists are only concerned with acquisition. Creator CEOs are concerned with acquisition, retention, loyalty, and sustainability – and that’s why they’re the million-dollar creators that make up SamCart’s top earners.
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