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How to make customers continuously use/buy from your product / service with the power of design? Let’s learn Customer-Lifetime-Value and making impact for business-growth!!

There are two ways to grow business:

The first is to acquire new customers. The second is retaining existing customers and increasing their lifetime value. For building a profitable business, number two is very important because they already have the trust, brand loyalty, and preference.

  1. Increasing the order value
  2. Increasing the number of purchase
  3. Reducing acquisition cost. And more…

Now, why do YOU as a designer need to learn about all of these business concept? Because if you want to make continuous impact with the power of design, it isn’t enough to just wait for project to come, you have to make contribution for the business with your design results.

CLV is different from the Net Promoter Score (NPS) that measures customer loyalty, and CSAT that measures customer satisfaction because it is CLV is measuring profitability.

Customer Lifetime Value = Average Value of Sale × Number of Transactions × Retention Time Period

If you spend $100 to acquire customer (via advertising, marketing, offers, etc.) but they only spend once cost $75, means losing money. But if they spend $75 over time, or multiple spending, then means you generate revenues for the business long-term growth.

So, let’s start… How do we improve CLV with design??

1. Improve the Onboarding Process

When the viewers want to use/buy something in your platform, how long is registration process? Do they need to fill 10 step pages just to become your customer? When they want to do checkout, is it safe, easy, and secure payment? When they want to fill in their address, can they get auto-suggestion or saved address?

2. Engaging Customers with Value-Packed Content

Engagement is not happen once, it happens for a lifetime…

Educational: Provide informations for smarter customers.

Promotional: Tell customers about special new deals.

Feedbacks: Collect pain points and suggestions.

Updates: Showcase blog, information, news, etc.

and more… ways engaging them.

3. Offer Strong Customer-Support by Design

This can be do in two ways, first is using the LIVE version such as designing customer-service chat system, Chatbot design, real-time support, and more. Second is by documenting knowledge base such as article, tutorials, FAQ videos, and more .

4. Building Relationship (User-Satisfaction Design)

When we build the product design, not only think from your stakeholders point of view, but also from your customers’ point of view. By using clear language, simple design, and continuously gather feedback to improve the user-experience across touchpoint.

Winning customer’s heart, is the same with winning your boss’ heart. While only focusing on winning your boss’s approval might not winning your customer’s heart. 

5. Personalised Experience Design

Personalisation experience is the important point if you want customers to be happy and spend more on the long run. Always build it with targeting your buyer persona. For example, put cookies, understand their preference, give them recommendation and more.

6. Upsell, cross-sell, free-risk trials

Have you ever buy something, but wait… there is more “Button” that asked you to buy additional thing just for XXX Dollars? or when you want to cancel order, there is a bundle deals to buy even more? 

The design is so irresistible, attractive, and easy-to-do just by “adding to cart” button. Customer is happy and you are happy too.

7. Customer-is-King, Recognise and Rewards Them with Honor

Last but not least, everyone want to feel special. But your customers is even more special (Because they are your customers). You can build a design membership or loyalty program, level-up and give more recognition or rewards or special membership just-for-you deals.

If you value customers, your customer-lifetime-value will grow, very simple philosophy.

“Wow… I never know that I can so much impact with the power of design. Give ideas to my boss, my management, my team, and my stakeholders how to increase user-satisfaction and lifetime-value use our product and service more.”

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