7 Personalization Techniques to Improve Customer Lifetime Value

by Jeremy Tang

This guide dives deep into the pivotal role of customer lifetime value (LTV) and elevates its importance through the lens of personalization. Highlighting the 80/20 rule, it emphasizes how a select group of customers drives most of your revenue, and the other segment may account for most of your costs. The piece includes seven practical techniques, including personalized content and transparent communication, to retain and nurture these vital customers.

Table Of Contents:

A Revolutionary Approach to Business Growth

Are you tired of stagnant metrics and half-baked marketing strategies that promise the moon but don’t deliver? At Area Ten, we’re all about transformative action, not just talk.


This guide is your ultimate playbook for amplifying LTV through game-changing personalization strategies. Get ready to unlock exponential growth and shatter your old paradigms; your journey toward skyrocketing your LTV starts here.

Why Worry About Improving Customer LTV?

You’ll encounter a vast ocean of metrics, KPIs, and buzzwords in the business landscape. But among them, a gem lies hidden in plain sight: LTV. It’s the heartbeat of transformative, rebellious growth.


In our e-book, From Sinking to Sailing, we talked about the compounding effect that emanates when you truly grasp the power of LTV and steer your business using its guidance. 


It’s the kind of growth that separates the titans from the rest. A study showed that with just a 5% shift in retention rates, profits can surge anywhere from 25% to 95%. That’s the sheer, unbridled growth you can harness when you understand the power of LTV.


When you decode the real value of a customer, you create a treasure map showing where to invest, how to serve, and ways to supercharge retention. It’s the tool that equips you to not just sail but conquer the business seas.

Mastering Personalization

Navigating the complexities of customer relationships is similar to piloting a ship through uncharted waters. Your compass? Personalization. As you read along, learn more, and apply the personalization strategies in this guide, you could do the following:


  • Elevate Customer Experience: Research showed that 80% of consumers are more likely to engage with a brand that offers personalized experiences, from the first “Hello” to a tailor-made product recommendation.
  • Fortify Brand Loyalty: Consistency and cohesion across all channels lead to a unified brand experience. Instead of gambling on a new purchase from a brand they don’t know, customers come back to what’s good and familiar.
  • Grow LTV: A staggering 63% of consumers will abandon brands with poor personalization tactics. But when you captivate customers through personalization, sit back and watch their LTV improve.


So, how do you create business strategies that make your customers feel like the only person in the room? Like they’re the reason for your existence? How do you make them last longer and buy more?


The first step is to identify these valuable customers. Here’s how:

Technique 1: Segment Your Customers

Let’s be honest here. Each customer you have should give you some sort of profit. But they’re not equal. Others may spend a few dollars here and there, but there are some who will spend so much more for your business. The initial step to curating a personalized experience is to find them.


Leveraging the 80/20 Principle

You’ve heard of it—the Pareto principle. But here, we’re not just discussing it as a theory; we’re weaponizing it for your revenue growth. 


Roughly 20% of your customers often contribute to about 80% of your revenue. Sometimes, it could be as little as 10% of the customers in your book. Just imagine how tiring and expensive it would be to personalize the experience of all of your customers when there are VIPs you could better address.


Conversely, the bottom 20% might be consuming a significant portion of your resources while contributing minimally. Identifying and reassessing these liabilities can free up resources for a better, more personalized experience for those VIP clients.


Know Your Top Customers

Now that you found the cream of the crop, it’s time to know what they like, what they’re looking for, and what will make them happy. Here are the three ‘Cs’ you should consider:


  • Customer Pain Points: Use past feedback and engagement metrics to identify what’s bugging them.
  • Customer Preferences: Understand their needs, expectations, and what value proposition they’re leaning towards.
  • Competitor Analysis: See where your rivals are falling short and come in for the kill.


Once you have all the data and are confident with your analysis, it’s time to start. Finally, here are more techniques to accelerate your customer LTV with personalization:

Technique 2: Create Open and Transparent Communication

In a world full of market noise and endless options, customers crave authenticity. Tailor your communication methods to the specific needs and preferences of each customer. Whether you’re engaging in a high-stakes boardroom presentation or an impromptu Slack message, make sure the medium fits the message. 

Technique 3: Tailor the Customer Journey with Content Personalization

You’ve heard it over and over again from every marketing agency: Content is king. The medium is the message. This is true, don’t get us wrong. However, the key to content is really making it relevant. But how?


Simply look into your buyer’s journey. 


Think of a customer whom you’ve already onboarded and have purchased from you a couple of times. Will you send them an email with the subject “How to use your X for the first time”? Of course not. It’s not what they want. Worse, they’ll feel like you don’t appreciate their past purchases. Goodbye, lifetime value.


So, to give you more idea, here are some tips to personalize your content strategy:


Shared Stories to Create Connection

This is when you can capitalize on shared feelings. Showcase experiences from businesses or individuals similar to them in markets they can relate to.


Make them think, “Oh, this company has solved the same problem I have with another customer, now I’m interested.”


Create Unforgettable First Impressions

The beginning of the customer journey is critical. It’s the first date, the handshake, the eye contact. Serve content that speaks directly to their unique problems, and you’ve not only captivated them but potentially converted them. Make the first touchpoint a memorable one.


Education as a Pathway to Engagement

As customers move deeper into their journey, their needs for information evolve. This is where personalized educational content comes into play. It’s not just about feeding them facts after facts but offering the right insights at the right time, thereby intensifying their connection with your brand.


Direct Emails that Fuel Urgency

As they hover on the brink of conversion, a well-crafted, personalized email, again, a well-crafted, personalized email can tip the scales. Think of it as the VIP pass that lets them cut the line; it should make them feel exclusive and drive them to act. This one-to-one engagement is your chance to secure their loyalty.


Tailored Recommendations as Value-Add Content

Here’s the raw truth: 91.3% of consumers are more likely to stick with brands that get them and that serve up the relevant offers and recommendations.


To capitalize on this, dig into customer data to spot patterns—be it preferences, recurrent behaviors, or even hesitations. Use this intel to create content around personalized product or service suggestions that resonate with their prior purchases. 

Technique 4: Humanize Interactions

In a digitized world that often reduces customer relations to data points, restoring a human element is a game-changing strategy. In fact, it’s a strategy that unlocks the vault to untapped revenue. Why? Because people don’t just buy products. They buy experiences and emotional connections.


Engage your customers and prospects one-on-one, not as anonymous entities, but as John, the tech-savvy CEO, or Sarah, the growth-focused CMO. Understand their unique challenges, aspirations, and triggers. This is more than “knowing your customers.” It’s practically reading their minds and surpassing their expectations at every juncture.

Technique 5: Elevate Personalization Through Virtual Experiences

Virtual experiences revolutionize customer engagement, offering a platform where you can showcase products in an interactive, immersive setting. You’re not just merely displaying what you sell but contextualizing it in the customer’s life.


Take, for instance, virtual home consultations in the luxury real estate sector. Prospective buyers can explore properties tailored to their tastes without ever leaving their couch, which can result in a significant uptick in engagement and deal closures. Similarly, virtual fitting rooms in the fashion industry can increase purchase rates by allowing a try-before-you-buy experience online.

Technique 6: Ignite Customer Loyalty

The loyalty of your customers is more than a program but a promise fulfilled. Deliver rewards that aren’t mere tokens but the answer to their aspirations. Relevance is king. 


For example, let’s say you run an e-commerce business specializing in sports gear. If you notice a customer frequently buys cycling products, you could offer them an exclusive discount on a new set of bike wheels that you’ll release soon.


And don’t set a maze for redemption. Your program’s rules should be as clear as daylight and as easy as a Sunday morning. Customers hate jumping through hoops; keep it simple.

Technique 7: Amplify Customer Support

Exceptional customer support is your strategic weapon, and it even helps with personalizing customer experience. Companies that truly get this build lifelong relationships and unlock unimaginable LTV gains. Let’s get to the brass tacks:


  • Adopt a Multi-channel Approach: Customers want flexibility; give it to them. A single query might jump from Twitter to email to a phone call. Your system should be agile enough to accommodate this nonlinear trajectory without losing context or making the customers repeat themselves.
  • Move Fast: Not “when you feel like it” fast, but “blink and you might miss it” fast. Time is the currency of the 21st century. Respond promptly to queries and complaints. This shows you’re resolving issues and also conveying that you value the customer’s time.
  • Train Your Customer Service Agents: Equip them with exhaustive product knowledge, problem-solving skills, and a dash of empathy. Your team should be like SWAT for customer problems—highly trained, empathetic, and effective. This will make your customers feel like you’re not treating them as if they’re just cash cows but real people with unique problems you’re willing to address.

Case Studies

Below, we’ve outlined a couple of compelling experiences from our past clients that exemplify how a meticulous focus on personalization can drastically change the revenue trajectory of large businesses.


Elevating Sales for a UK Gluten-Free Snack Box Brand

One of our UK-based clients, a major brand in the gluten-free snack box sector, was failing to retain customers beyond initial purchases. New customers were intrigued but weren’t committing to the subscription model.


We initiated the project by conducting thorough data analytics, revealing a compelling insight: 21.4% of the customers contributed to 76.3% of the total revenue. Given the potential of these high-value customers, the company shifted a greater percentage of its marketing budget toward retaining them.


Rather than generalized offers, we leveraged this data to send out highly personalized snack box suggestions, even tweaking the subscription plans to better fit this segment’s dietary needs and preferences.


Within a short span of just six weeks, they recorded a 16.9% boost in customer LTV, a 14% increase in customer retention, and an impressive 30.1% uptick in overall revenue.


Revitalizing a US Packaging and Labeling Business

Facing a myriad of operational inefficiencies and diminishing profits, a US-based packaging and labeling company sought our assistance to course-correct their business. The focus was primarily on servicing a large number of buyers, but the returns didn’t seem to justify the effort.


Our initial data analysis revealed that the bottom 18.1% of their customers accounted for a staggering 76.4% of operational costs. These buyers were demanding but not profitable, absorbing resources that could have been better allocated elsewhere.


We advised the company to shift its focus from merely acquiring and servicing as many customers as possible to concentrating on quality. We recommended the strategic elimination of this bottom 18.1% of customers to free up operational resources and budget.


The company took action, ceasing work with the least profitable buyers and reallocating those resources to their top customers and prospects. The focus was then on crafting custom packaging solutions and priority delivery for reaching a certain spend for these high-value customers.


Within a span of five months, the company saw an 11.5% decrease in operational costs, a 9.3% increase in customer LTV for remaining clients, and a revenue boost of 18.2%.

Frequently Asked Questions

How can you forge a robust customer listening strategy?


It’s essential to adopt a multi-faceted approach that combines both active and passive techniques for gathering customer insights. Below are some key steps:

  • Start with Existing Channels: This is about using already available data and feedback mechanisms. You can look at what customers are already saying through existing touchpoints like social media and customer service interactions.
  • Voice of the Customer (VoC) Program: This is a more structured, organized approach to gathering customer feedback. It includes various methods of collecting customer insights, such as surveys, interviews, focus groups, and more. It’s a comprehensive way to understand your customer’s needs, expectations, and preferences.


What’s the optimal frequency for sending personalized emails to customers?


If you’re not showing up in your customer’s inbox, another business will. Yet, you don’t want to become that annoying relative who won’t stop calling. It’s essential to strike a perfect balance—a sweet spot, if you will. There’s no universal frequency that fits every business; it’s contextual, based on your industry and your customer interaction level.


Referencing a study from Zettasphere, the average frequency is 6.21 emails per week. However, this statistic is largely influenced by the retail fashion industry, which often employs a higher frequency of email marketing. For those in B2B or SaaS sectors, the recommendation is to dial it down while still maintaining consistent, value-added communication.


What should I directly ask my customers to amplify their experience?


Want to push your customer’s experience from “good” to “unforgettable”? Then don’t shy away from asking, “What would make this a 10-out-of-10 experience for you?” 

This question, which is discussed more deeply in our e-book, From Sinking to Sailing, serves as a catalyst for open dialogue. It tells your customers that you’re not just in it to make a quick buck but are genuinely committed to maximizing their satisfaction.

What You’ve Learned: Key Takeaways from the Article

If you’ve journeyed this far with us, congratulations. You’ve armed yourself with revolutionary insights that promise not just incremental gains but seismic shifts in your customer LTV. Here are the key takeaways:


  • The 80/20 Insight: Not all customers are created equal. Roughly 20% of your clientele could be contributing around 80% of your revenue and vice versa.
  • Personalization is King: Customization isn’t a gimmick; it’s the backbone of boosting LTV and customer loyalty.
  • Data-Driven Decisions: Use analytics to sharpen your strategies, particularly in identifying high-value customers based on recency, frequency, value of purchase, and propensity for referrals.
  • Seamless Customer Experience: The impact of personalization extends beyond just marketing and sales. By tailoring each touchpoint, from the first interaction to post-purchase, you ensure a customer experience that feels natural, intuitive, and rewarding.

Actionable Advice

You’re now ready to make a deeper connection with your customers. Here’s how to translate these insights into decisive actions:


  • Regularly Review Customer Feedback: Collect and analyze customer feedback through surveys, reviews, or direct communications to identify opportunities for improvement. Use this data to refine your personalization strategy and to update your product or service offerings.
  • Offer Live Chat Support: Integrate a live chat option on your website where customers can get instant personalized help, making them feel valued and heard.
  • Interactive Content: Use quizzes, polls, or configurators that lead to personalized results or product recommendations based on user inputs.

Transforming Business Through LTV and Personalization

We’ve all heard the saying, “It’s not personal, it’s just business.” It may sound good in movies, but this should never be your motto. The path to higher LTV and unmatched personalization is not just a strategy but a paradigm shift. Our last piece of advice? Always put yourself in your customer’s shoes. You’ll never know how they feel unless you put yourself in their position.


Eager to elevate your business strategy from merely understanding lifetime value to unlocking customer Lifetime Potential (LTP)? Dive deeper with the most comprehensive guide on the subject of lifetime value analysis and optimization. Contact us now to get your copy of our e-book, From Sinking to Sailing.


Don’t miss out on more than just innovative, battle-tested approaches to growth. At Area Ten, we offer a comprehensive suite of core services like SEO, Programmatic SEO, and Paid Media Management designed to deliver bigger results, faster.   


Our 100% solution philosophy ensures that we go beyond merely driving traffic; we focus on maximizing the value you get from channels like SEO and paid media. If you’re facing challenges similar to those we’ve solved before, it’s time to learn how a top-notch digital marketing agency can help you.


Reach out today, provide your details, and set sail toward unparalleled growth.

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