Customer onboarding is a process that you shouldn’t skimp on. It should be among your business ’ top priorities, as this is where your customer truly engages with your product and where you can make the biggest positive impact.
For example, when we talk about SaaS products , it is extremely important to set up a strategic onboarding process to encourage new users to continue using the service/tool and increase the value of your company.
Of course, the process may differ depending on the industry, customer needs, or desired outcomes. But there are some basic tips that most companies should use to get their customers hooked on the solution.
First, you need to make onboarding as easy and quick as bahrain phone number resource possible, with guides, step-by-step instructions, interactive how-to videos, integrated tutorials , and other content that can help customers achieve their goals.
Also focus on communicating the value of your offering from the beginning. Test onboarding approaches and monitor the Customer Health Score , that is, the level of engagement with your product or service.
2. Invest in upsells and cross sells
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 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.