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eCommerce Marketing Tip #11 – Client Lifetime Value


Focus on the lifetime value of clients


All too often, people in the ecommerce business think only about the first sale and nothing more. If you want to establish a strong a profitable business presence online, this certainly shouldn’t be the case. It’s important for ecommerce businesses to look beyond simply making a sale especially if you are mostly selling low-priced items with low margins.

Think about it – just because people bought a low$5,  $10 or $20 item from you at a very low margin, it doesn’t mean that they are not going to buy from you again. If you have $10 item and you have a client buying it for 10 times in a certain period of time, you’ll end up with a $100 average lifetime client value.

Most people in the ecommerce business have it all wrong by looking solely on the $10 sale at the front end and are often easily discouraged with how little they have to play with in terms of the amount that they are investing in their ecommerce marketing campaign and what they are initially making out of it

There’s a huge difference if you are looking at your marketing budget and tell yourself that you’re simply going to make a $10 sale as opposed to saying that you are going to make sale, take care of the client and ultimately end up making a $100 in sales. Thus we urge you to shift your focus from making a single sale to the average lifetime value of a client. So how do we start doing just that?

Let’s say your ecommerce business is offering an amazing value and service for your clients that they end up telling their family and friends. You’ve only paid to acquire such a client on the front end but they may not only end up making multiple purchases from you on the back end but they can also tell their others  which helps drive more business on the front end for free and so on.

Increasing the average lifetime value of clients in your ecommerce business isn’t difficult t all and there are a number of things that you can look into in order to do just that.  For one thing, you can set up an auto responder for every purchase that will send out follow-up emails to your buyers after 5 days. That email can simply check on any problems that your clients may be having about your product or service and how satisfied they are with it. You can then invite them back to your website to post a review or recommend more of what your business has to offer.

Building a good relationship with clients and nurturing their average lifetime value is such a simple thing not to mention the fact that it doesn’t really cost you anything more other than that bit of extra effort. Besides, how many businesses these days follow up on their clients making sure that they don’t have any problems with the products or services that they sold? Not to many I reckon so it’s really not that hard at all and it’s something that your clients are sure to appreciate!

Needless to say, such efforts at improving your client’s average lifetime value will also support future sales and provides the foundation for re-engaging clients for your business.

Improving average client lifetime value with surveys

Surveys are another great way to improve the lifetime value of clients in your ecommerce business.  By running surveys, you’ll get valuable feedback from your target market itself which includes among other things:

  • What your business could have done better? Areas for improvement?
  • What are they unhappy with? Common problems or complaints?
  • What are some the things that your clients feel are missing in your business offerings?


The answers to all these questions will certainly help you add more value to your business and keep your clients coming back to you thereby increasing average client lifetime value ultimately putting more money in your pocket.

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