Enhance User Relationships to Skyrocket Customer Lifetime Value (CLV)

7 minutes

Welcome to the digital age, where customer relationships and loyalty are key factors in driving sales and revenue for businesses. In today’s fast-paced world where competition is fierce and consumers have endless options at their fingertips, establishing a loyal customer base can be the difference between success and failure.

This blog post will explore how nurturing customer relationships can lead to a boost in Customer Lifetime Value (CLV) – an essential metric for measuring business growth.

Get ready to discover effective ways to enhance your approach towards building lasting relationships that drive long-term success for your brand.


Customer Lifetime Value (CLV): A Vital Metric for Business Success

The concept of customer lifetime value (CLV) came on stage when businesses understood that attracting customers was only part of the commerce equation, the other being retaining them. CLV is essentially the prediction of the monetary value a customer will bring to a business over the course of their relationship. By understanding CLV, businesses can allocate their resources in a much more effective way, focusing on retaining their high-value customers and building strong relationships with them. This is key to creating a loyal customer base, which in turn leads to increased profitability and long-term success.




Tactics to Build Robust Customer Relationships that Power CLV

Building strong customer relationships and making efforts to connect with your customers on a personal level are essential to increasing customer lifetime value (CLV). When customers feel valued and understood, they are more likely to trust your brand and become advocates for your products or services. This not only drives revenue over the long term, but also enriches the relationship between your company and its customers. Building strong customer relationships is not just a nice-to-have, it’s an essential ingredient for business success. Let’s go over the main tactics employed by businesses in their pursuit of connecting with their user base.


Leverage Exceptional Customer Service and Consistent User Experience to Foster Loyalty

Improving customer service and creating a consistent user experience is one of the main priorities to keeping clients satisfied and lengthening their average lifespan. Exceptional customer service not only enhances customer satisfaction but also fosters loyalty and repeat purchases. As a business owner, it’s important to understand that your customers’ experience with your brand extends far beyond the point of purchase. To truly stand out from the crowd, you need to offer exceptional customer service at every touchpoint – from the first email they receive to the last interaction they have with your customer support team. Prioritize exceptional customer service and you’ll see better returns in the long run.

Salesforce is a good example of a company that does customer service right. Their focus on customer success goes beyond problem solving. In addition to numerous self-services resources, like knowledge base and tutorials, they also offer the Trailhead program, a free online learning platform so customers can understand how to use their products effectively.


Optimize and Personalize the Onboarding Process, Don’t Rush It

The onboarding process is a crucial component, especially in SaaS. This step in the customer journey ensures that new users have a smooth transition into using your services. Making the process personal for each segment of customers – by taking into account their expectations and previous experience in the category – guarantees that they will feel supported right from the start. This can be achieved through segmented tutorials and walkthroughs, dedicated email onboarding campaigns for different groups or by setting specific in-app notifications, reminders, and call-to-action touchpoints.




Rushing this process can lead to information overload, feeling overwhelmed or frustrated, making it difficult to retain important information about how your offering works. By taking the time to personalize the onboarding sequence, businesses can lay a strong foundation that new user groups build on, to ultimately lead to more engagement and value derived from your product.

Hubspot has refined the user onboarding process, making it effective and impactful. The SaaS company starts off their onboarding with surveys, to better understand the needs and expectations of each user. Input from these findings is then used to tailor the journey, for a more engaging experience.  This stage of the funnel also often includes kick-off calls with new users to establish customer relationships, guides on how to do the platform’s setup and even intelligent Onboard Assistants, to ensure the process is completed effectively.


Offer Quality, Omni-Channel Customer Support

Customers nowadays expect quick and efficient support across multiple channels, including email, phone, chat, and social media. As a result, businesses that fail to provide top-notch support risk losing users and damaging their reputation. To meet these expectations, merchants must invest in robust customer support systems that employ the latest technologies and offer seamless experiences across channels.

Must-have channels for meeting your customer queries include email, live chat, social media, guides, tutorials and help centers and phone. The goal is to have all these support channels tracked and connected, to be able to better assist the user if they start the inquiry on one avenue and follow up on a different channel.

Adobe is a company that does customer support right. Offering a vast library of tutorials, one-to-one help via live chat, a robust community forum and even a Virtual Assistant, Adobe is able to offer extensive, connected support for its suite of creative software.


Communicate Openly and Transparently

It’s no surprise that customers want to know what their favorite brands are up to and what they’re working on. Afterall, transparency cultivates trust, fosters relationships and gives it authenticity. It’s not enough for a company to have a vision; you have to share it – and often. Sharing your roadmap demonstrates your commitment to being open and gives customers a glimpse into your long-term plans. It shows customers that you are not just interested in making a sale, but you are dedicated to building a relationship with them.

And it is not only the good that needs to be shared; be transparent even when the going gets tough. Take ownership of issues that arise and be honest with customers about the challenges you face. Buffer did just so some years back when it was hacked, issuing public statements and articles where they detailed the entire problem.


Leverage Personalization in Upsell/Cross-Sell Scenarios

Leveraging personalization can make all the difference in the world. No longer can businesses rely on generic, one-size-fits-all approaches to engage customers. Instead, companies must tap into the power of data and advanced technologies to deliver tailored experiences that cater to individual needs and preferences.

This is especially crucial in upsell-cross-sell scenarios where businesses have a unique opportunity to deepen relationships and maximize value. By using personalization, companies can unlock new revenue streams and build customer loyalty.

Businesses can take notes from Amazon’s approach, who’s been winning at personalization in increasing the customer lifetime value. By recommending products based on the user’s browsing history, past purchase and what’s actively in their shopping cart, they make the entire experience much more relevant.


Create loyalty programs

By rewarding customers for their continued patronage, businesses not only increase retention, but you also establish a relationship with its users. An effective loyalty program should be customer-centric, offering rewards that are tailored to the needs and wants of customers. By incentivizing repeat purchases, surprising clients with free gifts or even going as far as to personalize rewards, company-user relationships are strengthened, and CLV goes up. 




Focus Relationship Building Efforts on Your Most Valuable Customer Type

Every business has a specific group of customers that are the most valuable to them and it is this group that you want to strengthen relationships with first. But how do you identify and target this group? The answer lies in data analysis and customer segmentation. By analyzing your customer data, you can identify patterns and behaviors that indicate who is most likely to become a loyal customer and who brings in the most revenue. From there, you can create targeted messaging, rewards, and personalized experiences to appeal to this group.


Proper customer segmentation is key

Customer segmentation lies at the heart of improving customer lifetime value (CLV). Segment customers based on their preferences, behavior, and demographics and tailor campaigns and communication to cater to specific needs.

Brands that prioritize customer segmentation develop a deep understanding of their customers, are better positioned to create products and services that customers actually want and are able to create customer-centric experiences that drive repeat business and lifetime loyalty.

For instance, Slack, the messaging and collaboration platform uses behavioral segmentation in its marketing strategy. They look at customers in terms of how they use the platform – whether to communicate internally or with external stakeholders. They also segment in terms of how active users are – users with different levels of app usage receive different in-platform messages and, more so, power users are the first to be invited to test Beta features.


Collect the right data

To ace segmentation, access to the right data is mandatory. Companies should strive to gather information that will give them insight on what customers want, need, and value. However, it’s important to remember that not all data is created equal. You want to focus on data that is accurate, relevant, and timely. By doing so, you’ll be better equipped to make strategic decisions that are grounded in facts, not assumptions. This type of data fuels efforts to anticipate customer demand, improve products and services, and better time marketing efforts.

When Nike Hong Kong wanted to grow their engagement with users by staying on top of local market trends, they leveraged smart insights tools to understand what their audience was interested in, specifically what local sport events were on users’ radar. This allowed the sportwear brand to apply their marketing efforts to where customer and prospect attention was directed, and boost company revenue.



In conclusion, nurturing customer relationships is vital for long-term success and increased customer lifetime value. By investing in strong and meaningful connections with your customers, you not only ensure their loyalty but also pave the way for potential referrals and positive word-of-mouth marketing. From personalized interactions to proactive problem-solving, there are endless benefits to building strong customer relationships. Start implementing these tips and watch as your CLV soars to new heights.



Need more insights on how to build relationships with your audience? Watch Katie Penner from Sendoso as she goes over tactics for using human connection in the digital landscape.


0.00 avg. rating (0% score) - 0 votes
Simplify the eCommerce process. Try 2Checkout.
The most flexible digital commerce platform that can give your business a real boost.