The “lifetime value of the consumer” concept is based on the fact that it is much more cost effective to keep a good consumer than to attract a new one.
For large ticket items (automobiles) or items that require frequent purchase over time (breakfast cereals), the lifetime value of a consumer can be very high. So, encourage young customers to buy your products and services. This will help your business to remain healthy over time and to create a longer lifetime value of the customer.
Techniques for keeping good consumers include the following:
• database marketing,
• special services,
• product customization,
• personal touches,
• legendary service,
• communication that reinforces previously made purchases (especially to overcome post purchase anxiety and doubts for large ticket items),
• programs that reward loyalty and heavy brand consumption, and
• avoiding programs that encourage brand switching.
Can you think of others?
The Blake Project Can Help: The Customer Experience Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education