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- 🍯 3 Actionable Ways to Boost Your CLV Today
🍯 3 Actionable Ways to Boost Your CLV Today
Hint: You can implement these immediately.
Hello You DTC Savage,
Ready to boost your Customer Lifetime Value in a meaningful way?
Today I’m zeroing in on the three retention metrics that matter most: Repurchase Rate (RPR), Average Days Between Orders (ADBO), and Customer Lifetime Value (CLV).
Quick Refresher:
RPR: How many customers come back.
ADBO: How quickly they come back.
CLV: How much they spend over a given timeframe.
When these metrics align, we hit retention gold. Here’s how we made them work in tandem.
1. Analyze Top RPR Products with an Eye on Price
Cross-reference your highest RPR products with volume, price point, and performance relative to your Average Order Value (AOV). Aim for a high-RPR product with an above-AOV price point. The goal? Getting a repeat purchase that’s worth more than the original. But remember, this isn’t always straightforward. Test across segments to find which combination of high RPR, AOV, and timing maximizes your lift.
2. Timing Is Key: Capture the 20-30 Day Window
Ideally, we’re getting customers to repurchase a high-RPR product within the first 20-30 days after their initial order. When we succeed here, we’re not only boosting CLV for that first month but also setting up a higher RPR potential for the future. As RPR rises, so do the chances of a third purchase sooner than expected, compounding CLV even further.
3. Match Campaigns to Customer Patterns
Let’s say a customer initially buys a bundle of basics. The data might tell us that after X amount of time, they’ll need a refresh. Cue the top-performing best-sellers campaign in the post-purchase flow. For brands with replenish-able items (think essentials or wear-and-tear products), a well-timed reminder can deliver solid returns.
A lot of brands have their own in-house tools to do this, but if you don’t, here are some you can use: Peel Insights, Lifetimely, Northbeam.
Key Takeaway:
Boosting CLV requires optimizing for RPR, ADBO, and CLV simultaneously. While balancing all three is tricky, testing these elements together yields insights that help prioritize your focus. The data will guide you—but stay agile and test to find the winning formula that elevates all three metrics.
P.S. Don’t overlook that magic 20-30 day post-purchase window; it’s a small effort for a big reward.
P.P.S. Curious about more retention hacks? Drop a reply with your burning questions!
Lastly, I would love to chat with you on LinkedIn if we aren’t already connected.
Talk soon,
Feras