The most effective way to increase customer lifetime value is to improve customer satisfaction. By giving customers what they want, they inherently have more positive feelings towards your company and remain customers longer. When presenting customers with offers, it is impossible to know whether option A, B or C will perform best without structuring a scientific test around the offers.
By picking a few different offers and applying them to specific segments of customers, it is possible to determine which customer segments respond best to an offer. The testing doesn’t stop there. For example, determine what inactive customers favor versus what internet customers favor. Rock-paper-scissors might be what some companies are comfortable with, but we see no reason for guessing.
At RevGuard, we not only want to get rid of guessing when developing customer retention strategies, but human error as well. To make our process scientifically precise, we take different offers and subtract inconsistent human components. Each offer is presented in exactly the same way every single time. Customers do not even have the opportunity to deal with a tired, annoyed, or uninformed employee when they call in, which significantly reduces the number of emotion-based responses. Every call is handled exactly the same. This way, we are able to compare our numbers without factoring in any discrepancies. No guessing required.