If you sell different products or services that are complementary or whose prices vary depending on the use of the solution, upselling and cross-selling are some of the easiest strategies to apply to increase LTV.
While similar, upselling and cross-selling are not the same . Upselling works on the idea of selling a more expensive version of a specific product or service.
For example, if you have SaaS software , you belarus phone number resource can offer your customer an upgrade from a basic plan to a more expensive, advanced one with more perks and features.
Cross-selling, on the other hand , focuses on selling a similar and complementary product or service . A very simple example of cross-selling is when a customer wants to buy running shoes, so the store can also offer other products related to the sport, such as shorts and t-shirts.
The customer's own interest makes a difference at this point, making it a natural choice for cross selling and increasing LTV.
Another option regarding the creation of new offers is to create recurring sales products , a model in which customers purchase and pay periodically, with charges that can be weekly, monthly or annual .
3. Track other metrics
Monitoring indicators in general proves to be an excellent strategy for increasing LTV, which is a metric in itself.
By looking at SaaS metrics , for example, it is possible to analyze the company's development and what adjustments are necessary , in this case, to increase customer retention and increase LTV.
Some of the main metrics for you to track along with LTV are:
Churn Rate : number of customers who cancel their purchases/active accounts, common in SaaS services and products;
Average ticket : this is the average amount spent by your customers on your company's offers;
Customer Acquisition Cost (CAC) : indicator that estimates the investment required to acquire a new customer;
Monthly Recurring Revenue (MRR) : Metric that analyzes predictable monthly revenue for businesses that work with subscriptions and recurrence.