Retaining loyal customers is the lifeblood of sustainable brand success. They stay longer, spend more, and are easier to serve. Additionally, attracting new customers costs five to seven times more than keeping existing ones, so it’s also beneficial for your bottom line.


Brands can use customer lifetime value (CLV) metrics to gauge loyalty and recurring revenue from current customers. CLV is the total revenue a company earns from a single customer over the entire duration of their relationship. This metric provides valuable insights into how high-value customers interact with a brand and what marketing strategies work best for them.


CLV can directly impact a company’s profitability. The longer a customer’s lifecycle cycle is, the more money they generate for your brand.


Here are three ways to increase customer lifetime values, which will result in higher profits, more loyal customers, and long-term success.   

Personalized communications 


Personalized communications make customers feel prioritized, so it’s no surprise that almost two-thirds of them expect brands to deliver customized experiences. Tailored interactions play a pivotal role in customer retention, satisfaction, and CLV.


With 98% open rates, SMS effectively engages shoppers with personalized, two-way conversations. To customize messages, businesses should use SMS segmentation to bucket audiences by:


  • Demographics, including age, gender, location, and income brackets
  • Purchasing behavior
  • Engaged vs. unengaged customers


Most of this customer information can be found in your customer relationship management (CRM) system. Use up-to-date data to craft personalized, relevant messages that accommodate individual customers’ preferences, pain points, and goals. 

Loyalty programs 


An SMS loyalty program can significantly improve customer lifetime value. In fact, 84% of consumers will stick with a business that offers loyalty programs, and 75% of those who belong to loyalty programs will buy more products from that brand.


Make your high-value customers feel like VIPs and boost retention by:


  • Kicking the campaign off with a thank you message
  • Sharing special offers
  • Running referral campaigns and rewarding customers for each one
  • Sending personalized birthday messages and discounts


Customer loyalty programs demonstrate your appreciation for returning customers and make them feel valued. 

Reengagement marketing campaigns 


After a while, even the loyalist customers can become disengaged. They may stop interacting with your social posts, replying to emails, or visiting your website.


SMS re-engagement campaigns are an effective way to grab these customers’ attention again. Re-engagement is a strategy that aims to inspire inactive shoppers to engage with your marketing materials and resume activity on your site. 


Some SMS re-engagement campaigns to try are:


Boost CLV and retention with CleverTap and Mitto 


CleverTap is a powerful tool for increasing customer lifetime value. However, Mitto’s CleverTap integration capabilities can maximize the platform’s ROI by allowing users to seamlessly incorporate SMS with their existing marketing channels. 


Improve retention by sending personalized SMS promotions, launching a loyalty program, and re-engaging idle audiences. And thanks to our strategic partnerships with global mobile carriers and advanced proprietary AI-powered routing platform, CleverTap users have peace of mind knowing every message gets promptly delivered.


Ready to optimize retention, increase revenue, and deepen customer loyalty?


 Contact Mitto today for more information.