What Can You Increase The Lifetime Value Of Your Customers

2773 WordsAug 11, 201512 Pages
Zappos One of the easiest ways to increase the lifetime value of your customers is exceptionally great customer service. For example, Zappos will automatically upgrade your shipping to next day air every once in a while. And it also offers a 1-year return policy with little or no questions asked. By providing exceptionally great customer service, you will not only make happy customers, but you’ll have customers who will continue to come back. In the short run, this may end up costing your company a bit more money, but in the long run you’ll see the benefit, because each customer will not only spend more money with you, but they’ll tell their friends about the great experience they had with your company. Viral growth examples: Hotmail Virtual growth, as a concept, developed in the early 1990’s when the internet was becoming mainstream. The creators of Hotmail called it a “viral loop,” in that to use a particular product, it must be spread. They used a simple tagline: P.S. I love you. Get your free e-mail at Hotmail.” The idea behind it was that this simple tagline would be at the bottom of every outgoing email sent out by Hotmail users. Being a small start-up, Hotmail refused to spend money on marketing and instead depended on word-of-mouth to grow their business. While slow at first, once the tagline was implanted into all outgoing emails, users from all around the world began to sign up, as they realized their friends were using hotmail, and that it was free. In a matter of

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