Customer lifetime value matters, so how are companies attempting to improve retention rates? 

Our recent Customer Lifetime Value: Building Loyalty and Driving Revenue in the Digital Age report (produced with the help of Sitecore) has one answer: improving customer experience.

The report finds that 64% rate customer experience as the best tactic for improving CLV, followed by better use of data and personalisation. 

Areas most likely to improve customer lifetime value (CLV)

Just 42% of companies are able to measure CLV, but the majority do agree that the customer experience is key. 

Improved customer experience (ultimately a combination of different touch points) is high on the executive agenda going forward, with 64% of company respondents and 58% of agency respondents focused on this as a priority, making it the most important strategy for increasing CLV in the future.

Tactics and strategies for increasing CLV

The companies in our survey recognise the importance of treating customers well, so it's no surprise that better customer service is top here. 

What tactics and strategies has your organisation found most effective for increasing customer lifetime value (CLV) to date? (company respondents)

Personalised interactions are given equal prominence by agency respondents, both at 34%. Indeed, investing in customer services may prove to be the easier route for brands, stopping customers leaving, therefore increasing retention and reducing acquisition costs

Most effective tools for increasing CLV 

Given the focus on customer service and personalisation, it is unsurprising that companies rate the single customer view as the most effective tool for enhanced customer lifetime value (32%)

B2B respondents are significantly more likely to identify ‘ongoing customer dialogue’ as one of the most effective tools to enhance CLV (32% for B2B compared to 20% for B2C). 

What are the most effective tools to enhance CLV today? (company respondents)

Graham Charlton

Published 21 April, 2014 by Graham Charlton

Graham Charlton is editor in chief at SaleCycle, and former editor at Econsultancy. Follow him on Twitter or connect via Linkedin.

2566 more posts from this author

You might be interested in

Comments (3)

Stuart McMillan

Stuart McMillan, Deputy Head of Ecommerce at Schuh

Hi Graham,
I've had a good read through the report. I was wondering: do you have any actual examples of what improvements to customer services companies have made which have increased customer lifetime value?


over 4 years ago


martin hill-wilson


Given the fact that just 42% can measure it (and I would be more than surprised if this was indeed the case if verified), then I would imagine the only places you might find that correlation being actively tracked is either First Direct or Zappos. The latter provides direct comparison of course.


over 4 years ago


Jason Dea

Great insights. It's amazing that research and data keeps showing how critical customer experience is, but sadly many brands continue to do little more than pay it lip service.

At the end of the day, almost all consumer targeted products are commodity to one extent or another. The only thing left separating you from your competitors is how customers "feel" whenever they interact with you and whenever they spend their hard earned money on you. The cliche example is Starbucks who has such a laser focus on delivering the Starbucks each and every time a customer walks through the door. I guess they realize that there is actually no product more commodity than coffee :)

On the flip side research also seems to show that the brands that seem to always downplay customer experience are big utilities such as telcos. I actually don't know anyone with a positive telco experience story. Sadly almost all of us have a story (or two) about the time that we were treated poorly by a telco.

over 4 years ago

Save or Cancel

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Digital Pulse newsletter. You will receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.