The Secret to Building Customer Loyalty and Increasing Revenue [9 min]

0:00If you've been feeling stuck in your business and wondering if you're the reason it's not growing faster, I have something for you. I'm hosting a free, no-pitch, live class called Three Money Beliefs That Made Me Millions. And I'm sharing the exact mindset shifts that helped me go from million-dollar years to million-dollar months. This isn't fluff. It is a surprising strategy that changed everything for me, and I want to share it with you. Like I said, no pitch, no fluff, just you and me talking about how we shift our beliefs around money to make you millions. Save your seat now at jasminestar.com forward slash millions.

0:32I can't wait to see you there. How much more could your business grow if every customer stayed with you twice as long? Hey there, I'm Whitney, Content Director for Social Curator. And today, Jasmine is diving into something every business owner needs to keep a pulse on, your customer's lifetime value, or LTV. If you've been wondering how to build long-lasting relationships that turn your customers into loyal fans and increase the revenue they generate over time, well, you're in the right place. In this episode, Jasmine is sharing five strategies that you could implement today to boost your LTV and create more sustainable growth in your business.

1:11So ready to create deeper connections and maximize the potential of each customer? Perfect. Let's go. I'm going to share five strategies for increasing LTV. But what's important to remember is that the best way to increase your LTV comes down to one very important thing, prioritizing the customer experience and results. I recorded an episode. It was titled, How to Create an Unforgettable Customer Experience. I want to recommend listening to that after you've listened to this one. If you haven't listened to it already, I'm gonna link it in the show notes for you because my friends, that is gonna be another major brick in the foundation that you lay.

1:46Now, if you're taking notes, write down one through five and I want you to leave notes for each one. And then I want you to circle the ones that you think you should implement in your business. I am teaching you what I wish I had focused on or learned more when I was getting a business degree in college. So starting with strategy number one, segment your customers. Okay, so what does this mean? By dividing your customer communication, most likely via email, you can divide them into groups based on factors like interest, what they're aligned with, and especially their past purchases. And then you can customize their experience to cater to each specific group.

2:22Now, not only does this make customers more likely to buy again, but it also helps build their loyalty and satisfaction with your product or service. We're going to be doing a live event. We weren't sure if we were going to share it publicly. People on the outside have been asking if they can go to this virtual summit. And while we didn't necessarily have a plan, our COO, her name is Jade, she came to me and she said, I don't know if we're really going to promote it, but I do think that we should have it available for the people who asked. I liked the idea, but then I thought to myself, maybe I don't need to broadcast this on social media, but for people who are really inclined in my inner circle, people who are on our newsletter list, I think we should offer them an invite just to let them know that the option's there.

2:59So then what I decided to do is I said, we should segment our list. We should segment our list under the Jasmine Star brand, people who subscribe to the Jasmine Star newsletter. And we need to speak to them in a very specific way because at this point in time, they probably haven't bought from me before. Then a different part of the list is we're going to send a new and separate email to users, members of Social Curator, because we're going to speak to them very differently. They're a part of our community. They're already paying and investing. and then we're going to have a separate email sent to former members of Social Curator.

3:33This means that they were a part of our organization and then for some reason decided to go on a new path, but it doesn't mean that they necessarily had a bad experience, but we're going to have to speak to them differently than we would somebody who's never bought from me, somebody who's currently buying something from me, part of our subscription, and somebody who has bought in the past but currently isn't a customer now. So do you see what we did? We segmented so that we could speak to them differently so that we can hit on new and current pressure points for them, which would then help us increase our what?

4:01LTV. Okay. Now this should be done with your email list or if you have a text message list. Okay. But for the sake of the LTV in this conversation, like what we're going to focus on, let's just focus on current customers. Just think about somebody who's exercising to gain weight and build muscle. You know, they're getting emails from their health coach, teaching them ways to shed weight and vice versa. Now taking these extra steps can make a big difference in your customer's results and their LTV. Okay, now let's dive into strategy number two, offer a subscription or a membership model. Creating a subscription or membership model, no matter if you have a product or a service-based business, man, it is going to help you generate consistent, steady, and very predictable revenue.

4:43What I think is like really magical about subscriptions and memberships is that it keeps customers engaged regularly, like and constantly. With something they buy one time, that's a one-time payment coming out. But with recurring payments, it serves as a reminder to use the subscription or the membership because they're paying for it. It's accountability. Okay. Strategy number one is to segment customers. Strategy number two is to offer a subscription or a membership model. And strategy number three, to increase your LTV is to under-promise and over-deliver. So under-promising and over-delivering is the absolute best ways to build trust with your customers.

5:19Here's the thing. It's easy to make promises when somebody is considering buying to you. We feel like we must tell them all the things to get them to say yes. But that's rarely true. In fact, research suggests the opposite. Studies show that potential customers typically need 25 to 40 % of the information provided to make a purchasing decision. So let's just stop and think about this, right? Look at what you're currently saying and promising your customers. Then cut it in half. If anything, this should light us up. We don't need to sell everything all at one time. Let's narrow that down to the top 50 % that we think is going to make a difference.

6:02So don't promise everything and leave some features a surprise. Delight them. You know, it's like you want to over-deliver. Gamify with reward systems. Okay, I have to tell you, like I used to think that this was so nerdy. Whenever people would give me advice on how to increase my LTV with a subscription, they would ask, what might we gamify? And I'm like, number one, I was raised in a conservative household and we couldn't ever afford Nintendo. I did not grow up gaming whatsoever. All the other cool kids, they had like Game Boys, not me. I was out here playing Monopoly and sorry, like these games he got from thrift stores.

6:40So they're like, gamify your offer. I was like, I have no idea what you're talking about unless we're going to buy Boardwalk. So I will tell you, though, research and statistics is right. Gamifying your offer or program with the reward system is a great way to keep customers engaged and loyal, which ultimately increases their lifetime value. Now, to do this, first, set clear goals for the rewards program. Then design a structure that offers rewards for different actions like purchases or referrals. And you want to make it fun and game-like, right? So these elements could be like, you could show a progress bar or you could do challenges.

7:12When we think about this and how it exists in the real world, I want to use a real example. I think Peloton has gamified working out solo and making it feel like it's a community. So they constantly do these challenges. And then what's the gamify component? Yes, the challenge is the start, but then you can earn rewards and badges. And these rewards and badges live in your profile. So people want to collect these digital badges as a way to stick out in the community. It's crazy. And you would think, that's dumb. We don't want no stinking badges. Maybe you don't. But a lot of people love them. So when you personalize your rewards to each customer, and then they get to promote the program, like this is how it's all working.

7:55They feel really great about it. So I want you to listen to feedback because your customers are the ones who are actually playing the game. They're the parts of the gamifying. So getting their feedback is what is going to make it successful. Games trigger the release of dopamine in the brain, which plays a huge role in the brain's reward system. And this creates satisfaction, which is why gamifying can really help increase your LTV. Strategy number five, upsell and cross-sell. Y 'all, y 'all, y 'all. When it's appropriate, encourage your clients and customers to upgrade or purchase complimentary products.

8:26This not only increases the average order value, but it also enhances their experience. But what's very important to remember is that you continue to play the long game by building trust. When you're suggesting another product or service to a current customer, think of them like a family member who's about to purchase something. Would you let your mom purchase something that she didn't need? In the same way, I want you to make offers that are truly in alignment to each customer because this goes a really long way to build trust. And that's a wrap. I hope these five strategies to increase your LTV sparked some fresh ideas and gave you actionable steps to start implementing now.

9:06Remember, growing your LTV isn't just about making money. It's about creating lasting relationships with your customers, which in turn creates more opportunities for sustainable success. If you found value in today's episode, be sure to share it with a fellow business owner. They'll thank you.