The best ways to increase customer lifetime value (without increasing your subscription price) are to reduce customer churn by improving the customer experience and increasing revenue from existing customers.
With those goals in mind, here are a few ideas on things you can do as a subscription-based business:
Start a customer referral program
A customer referral program has two major benefits. First, a customer referral program incentivizes your existing customers to promote your business. And, secondly, data on referral programs shows that referred customers are 18% more loyal, have a 16% higher lifetime value, and spend 13.2% more than non-referred customers!
Offer perks and rewards to your loyal customers
Your lifetime value calculation will tell you who your most valuable customers are. So, you’ll want to make sure that value is reciprocated! One way to do that is by offering those customers special perks and rewards for continuing to buy from your business. For example, you might offer early or discounted access to new features of your service.
Collect and respond to customer feedback
Knowing what your customers love about your business is nice. Knowing what they dislike about your business is even better because you can use that information to improve your business. So, regularly collecting customer feedback AND addressing problem areas is key to reducing churn.
For example, you can actively collect customer feedback by sending out customer satisfaction surveys and passively collect it by monitoring mentions of your company on social media platforms. Then, you create actionable plans to address major issues that might cause customers to cancel their subscriptions with your business.