Shift your focus to CLV: 5 growth hacking strategies that are here to stay.  

The results from our 2024 DTC expectations study highlighted a clear theme, with eCommerce managers and directors agreeing on a shifting focus from acquisition to Customer Lifetime Value (CLV). 

In a competitive market where retaining existing customers is more cost-effective than acquiring new ones, this shift is becoming increasingly important for long-term profitability.

This blog explores five growth hacking CLV strategies that are here to stay, all recommended by our Shopify Plus experts.

‍

🤝Loyalty programmes 

Loyalty programmes are on the rise as more brands focus on fostering deeper, emotional connections with consumers. 

Turning satisfied customers into brand advocates is proven to increase the number of transactions per customer, and is an efficient way to collect valuable first-party data that can be used in alternative retention efforts.

‍

Expert advice on loyalty programmes:

• Offer valuable rewards: This could include points for discounts, free gifts, exclusive access to sales, or VIP experiences.

• Implement a tiered system: Customers receive more benefits the more they spend, boosting average order value (AOV).

• Personalise the experience: Use the data you’re collecting to tailor your communications and enhance connections.

• Reward engagement beyond purchases: Show your community they’re truly valued, which builds trust.

• Ensure friction-free UX: Make it easy to join and be rewarded, giving shoppers no reason not to participate.

‍

📧Automated email marketing 

Email marketing automation can enhance CLV by promoting continuous engagement and personalised experiences. Here are four automated email flows that drive retention:

• Welcome Flow: Introduces new subscribers to your brand and tells your story, setting the stage for future interactions and repeat purchases.

• Post-Purchase Flow: Enhances the customer experience after a purchase with order updates, thank you messages, product usage tips, and recommendations for related products.

• Re-Engagement Flow: Wins back inactive customers by reminding them of your brand and offering incentives to return. Targeted emails based on inactivity periods can entice customers to re-engage.

• Birthday or Milestone Flow: Celebrates customer birthdays or relevant milestones to build a personal connection and show customers they are valued.

‍

🧑Personalisation 

Personalisation enhances engagement and loyalty by tailoring the shopping experience to individual preferences.

Dynamic content and personalised product recommendations significantly increase conversion rates, while cross-selling and upselling strategies drive additional revenue. Personalised marketing campaigns and customised shopping experiences make customers feel seen and valued.

‍

Expert advice on personalisation:

• Collect and Analyse Data: Use tools to gather and analyse customer data to understand preferences and behaviours.

• Segment Your Audience: Tailor your marketing efforts to different customer segments for maximum relevance.

• Use Dynamic Content: Implement dynamic content in your emails, website, and other touchpoints.

• Offer Recommendations: Use AI and machine learning for personalised product suggestions.

• Continuously Optimise: Regularly review and adjust your strategies based on performance data.

‍

📊Data driven decisions

Customer data provides insights that refine strategies, optimise operations, and enhance both online and offline experiences. Here’s how to leverage data effectively:

‍

Expert advice on making the most of data:

• Predictive Analytics: Forecast future sales, identify trends, and predict customer churn. This helps in planning inventory, staffing, and marketing budgets more effectively.

• AI-Driven Chatbots: Provide instant, personalised assistance by analysing customer data to offer relevant product recommendations, answer common queries, and escalate complex issues.

• Zero-Party Collection: Use quizzes and interactive content to collect zero-party data directly from customers. This data is voluntarily shared by customers, providing valuable insights into their preferences and needs without privacy concerns.

Brands operating on Shopify or Shopify Plus can benefit from a robust set of tools and reports that support CLV-driving decision making. Shopify's recently revamped analytics tools provide up-to-the-minute data, helping brands make informed decisions with real-time insights. For more information on Shopify Analytics, check out this blog.

‍

📈A/B test at every opportunity 

A/B testing is a powerful tool for optimising both email marketing and website performance. By comparing two versions of a web page, email, or other marketing asset, you can determine which version performs better and drives more engagement.

‍

Expert advice on A/B testing:

• Email Marketing: Test subject lines, content layout, and send times. Continuously testing and refining your email campaigns can significantly improve open rates, click-through rates, and conversions, enhancing customer retention and CLV.

• Landing and Product Detail Pages: A/B testing on landing and product detail pages aims to identify the most effective design, content, and functionality to drive conversions. Test headlines, CTAs, images, and layouts.

• Conversion Rate Optimisation: Use session recording and heatmap tools to understand how users interact with your pages, identifying areas for improvement. Collect direct feedback from users to understand their pain points and preferences, and track the customer journey from entry to conversion, identifying drop-off points.

‍

If you’re interested in a personalised growth roadmap for your brand, get in touch.