Posted by Melissa Thompson

Within the broad range of customer value management topics, there’s one that you’ll definitely need to grasp if you’re going to take your revenues to the next level — customer value maximization. This series of tricks and techniques can help you optimize every customer that you bring in, and the following tips will help you get started.

Customer Value Maximization Defined

Customer value maximization seeks to go beyond your standard CRM principles and techniques. It’s all in service of one overarching goal — to increase the number of times that customers make transactions with you, boost the average dollar amount of those transactions, and extend the length of time that they remain active customers of your business. Combined, these form a pathway to maximized revenue.

In order to achieve these goals, you’ve got to know how to make the right offerings to customers at the right times so that they’ll bite, and treat them well so that they’ll want to remain customers well into the future. It’s easier said than done, however, so let’s next discuss specific strategies for maximizing customer value.

Your (Brief) Path to Maximized Customer Value

So, if you want to maximize the time, purchase frequency, and amount spent of your customers and their transactions, you’ve got to know how to personalize your marketing efforts and interactions to your different customer subtypes. Starting off, this means that you’ll have to get to get to know your customers on a much deeper level.

Customer segmentation is a good jumping off point for separating your overall customer pool into smaller groups based on shared characteristics. It won’t be enough to stop there, however, as that will still run the risk of making bad calls on what your customers truly want. After sufficient segmentation of your audience, you’ll also want to track certain individual behaviors to provide further insights you can use for personalized marketing.

This will all allow you to better predict the desires and actions of your customers, allowing you to swoop in with solutions that speak directly to their pain points and maximize value over time. This won’t be possible without thorough analytics, however, so if you haven’t already, you’ll want to start exploring different ways to bring in data and track important metrics that will help you fuel your pinpoint targeting efforts.

In Summation

If you want to get the most out of your relationships with customers, you’ll have to go a step further and start embracing customer value maximization principles. There’s a lot involved, but the short version is this: use your insights into your customer base to target them more precisely with marketing. Done correctly, you can increase each customer’s transaction frequency, amount, and history so that your revenues are truly optimized.