Lifetime Value Part 15: Five ways to use data to improve customer lifetime value

I recently came across a great post in Wired by Neil Capel about leveraging data to increase lifetime value. I have written many times about how lifetime value is the lifeblood of your business. A high lifetime value allows you to spend more on marketing and thus grow your business; low lifetime value makes it impossible to acquire new users. In Capel’s post, he outlines five ways you can leverage data to increase your lifetime value.

1: Use data to understand customer interests to create relevant content

Customers and players face an overwhelming amount of information and content. They are also not looking, and actively avoiding, advertising. What they want is information that is relevant to them. Customer’s interests and needs change constantly and you can tap into that inferred nature of the data to determine which elements of your content will be the most relatable and consumable to each user. Leveraging data you can determine which pieces of content an individual wants to interact with and then use that information to deliver automatically current and relevant content to that individual.
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How thank you notes can help your business succeed

There was a great post recently on Forbes.com, “How 13,000 Handwritten Thank You Notes Built A Thriving Business,” about how good old-fashioned thank you notes could be used as a growth and retention tool.

To show the value of thank you notes, the author points to the example of HEX. HEX is a small company that competes with big brands from Tumi to Michael Kors, and has in part competed by incorporating personalized, handwritten thank you notes to purchasers–over 13,000 thanks notes to date. The notes do make it easy to respond or share word of HEX over social channels, both by the inclusion of social coordinates and because in addition to the handwritten note, the customers receive an automated online confirmation that can be replied to. Given that HEX is successfully competed with well financed companies, thank you notes turn into a strong tool for small companies.

Thank you note

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