Proactive communication is key to improving customer lifetime value (CLV). CLV is an essential business metric for every online business.
By increasing average CLV, your business benefits from more customer referrals and reduced operating costs – remember, generating a new customer is about 5 times more expensive than maintaining an existing customer.
Developing customer loyalty – and as a result improving CLV – requires a communication effort that drives your customers to trust you. When a customer trusts you, it’s more difficult for them to leave you for one of your competitors. To instill a sense of trust in your customers, you must be effective at proactive communication.
With a proactive stance to communicating with your clients you can:
– Improve Customer Loyalty – proactive communication shows a commitment on your part to customer satisfaction. When you use proactive communication to share information with your customers about software downtime you display a sense of honesty and transparency that will be welcomed by your clients. After all, every business makes mistakes and experiences performance issues. What sets a great company apart from the rest is how that company deals with adversity. Open, honest, proactive communication fuels a trusting relationship. If your customers trust you then they will continually reward you with their business – even if you make some mistakes.
– Control Communication – communicating proactively empowers you to frame the conversation in the most favorable light. This is preferable as opposed to having to respond to an inaccurate framing of a situation. By communicating proactively you control the conversation and you control how your customers and prospects perceive you.
– Improve Organizational Productivity – we all want to maximize our productivity and the use of proactive customer communication is a great productivity-boosting tactic. By communicating proactively you can answer customer questions before they have an opportunity to ask. If you have an application or website issue, this type of communication can significantly reduce the number of incoming support calls you receive. There are great tools available to facilitate this type of communication – for instance, take a look at Uptime.ly. Uptime.ly is a cloud-based platform that makes it easy to proactively communicate application up-time status and scheduled maintenance with end users – from a unified communication platform.
The benefits of proactive communication are significant and they affect your ability to improve CLV. So be proactive and take control of your success!
Oh, don’t forget about live chat. Live chat is a great mechanism for supporting a proactive communication approach and for building a client relationship that will maximize your CLV.
With live chat you can offer your customers the most productive and sought-after mode of online communication. Also, remember, a live chat agent can handle 3-4 support chats simultaneously. So when a customer needs your help, if you have live chat, you can address customer needs more expeditiously and this contributes to a positive customer view of your company.
And, with live chat you can configure proactive chat triggers that engage website visitors automatically based on an action – or a set of actions – associated with the site visitor. This is another example of proactive communication that is productive and efficient.