B2B Companies – Start Improving Your LTV Now
In my last post we unpacked what lifetime value (LTV) is and why, especially as a B2B company, you should be actively measuring it.
Now that you are measuring LTV (you are, right?), opportunities for improvement may be surfacing, so let’s get specific on some key ways you can increase your client lifetime value and propel your business’ growth.
Targeting high-quality prospects
Now that you know who your best clients are, specifically the most valuable clients, you can start targeting companies that are similar in revenue, industry, verticals, etc.
By concentrating your efforts on the most valuable types of businesses, you can avoid wasting time and resources on bad fits and focus your energy on the types of clients that best fit your model and drive lifetime value.
Identifying gaps in your onboarding process
At Syrup, when we talk about the WIN stage of the funnel, we always emphasize that closing the deal and earning the new client is only part of being successful in this stage. The other part is onboarding well. This means different things for different companies but here are a few common gaps we see:
- Disconnect between sales and operations during the handoff or no overlap between the two
- Lack of a human touch to the onboarding process for digital leads or no process to begin with
- No consistent or ongoing follow-ups with new clients to monitor and ensure successful onboarding
Retaining better clients
Reducing churn and increasing client retention go hand in hand in driving LTV. By increasing client lifespan, you increase LTV. So often we see B2B companies focused exclusively on customer acquisition, neglecting the growth opportunities with existing clients.
Take a proactive approach when it comes to client retention like establishing a process for checking in and monitoring clients that are at a high risk of churn so you are able to get ahead of issues before it’s too late.
LTV is a powerful metric that can help you target prospects more efficiently and effectively, highlight gaps in your onboarding process, and address issues before they become systemic problems.
When you improve your client’s lifetime value your processes, your delivery method and your customer experience follow suit, ultimately driving long-term, sustainable growth for your business.
So, what will you do to improve the LTV of your clients?