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6 Ways to Increase Your Online Store’s Customer Lifetime Value

Are you looking for ways to take your online store to the next level? One crucial metric to focus on is your customer lifetime value (CLV).

This metric measures the total revenue a customer will generate throughout their relationship with your business. Increasing CLV is key to boosting your business’s profitability and long-term success.

So, if you want to improve your online store to maximize customer lifetime value, you’re in the right place. In this article, we’ll cover six effective tactics you can implement to increase your CLV and achieve greater success in the e-commerce world.

What is customer lifetime value and how do you calculate it?

Calculating CLV involves several factors, including the customer’s purchase history, their average order value, and their predicted retention rate.

Here is a basic formula for calculating customer lifetime value:

CLV = Average Order Value x Purchase Frequency x Customer Lifespan

Average Order Value: This is the average value of each order placed by a customer.

Purchase Frequency: This is the number of times a customer makes a purchase within a given time period.

Customer Lifespan: This is the length of time a customer continues to make purchases from the company.

For example, if a customer makes an average purchase of $50, buys from the company twice a month, and continues to do so for two years, their CLV would be:

CLV = $50 x 2 x 24 = $2,400

This means that, on average, this customer is predicted to generate $2,400 in revenue for the company over their lifetime.

It’s important to note that there are more complex variations of this formula that take into account factors such as customer acquisition costs and retention rates.

However, the basic formula provides a good starting point for estimating customer lifetime value. You can calculate this quickly using a CLV calculator

What are the benefits of improving customer lifetime value?

Improving your customer lifetime value (CLV) can yield a host of benefits for your online store. Here are some of the key benefits you can expect to see:

  1. Increased Revenue: By increasing the CLV, you can generate more revenue from each customer, which can significantly boost your overall revenue. 
  2. Higher Customer Retention: A higher CLV is closely associated with better customer retention rates.  
  3. Lower Acquisition Costs: A higher CLV means that you can spend more on acquiring new customers without affecting your profitability, as the return on investment (ROI) is higher.
  4. Improved Customer Satisfaction: By providing a better customer experience and offering more value, you can increase customer satisfaction, leading to better reviews and increased word-of-mouth marketing.
  5. Greater Competitive Advantage: By offering a superior customer experience, you can differentiate yourself from competitors and gain a competitive advantage in the market.

By focusing on increasing CLV, you can not only improve your bottom line but also create a more sustainable and profitable business in the long run.

How to maximize the value of your customers

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To maximize your CLV, there are several tactics you can employ. In this section, we’ll cover six key techniques you can use to acquire and retain high-value customers.

1. Provide excellent customer service

One of the most critical factors in maximizing your CLV is providing excellent customer service.

Customers who have a positive experience with your brand are more likely to return and make additional purchases, leading to a higher CLV.

To provide excellent customer service, consider adding customer assistance tools and plugins that support features such as live chat to help you meet customers’ expectations.

Live chat provides customers with immediate access to support, which can help resolve issues quickly and effectively. It’s also a great way to build relationships with customers and foster loyalty.

Overall, customer support tools enable you to manage customer inquiries and issues more efficiently by providing you with tools to track and respond to inquiries, manage support tickets, and provide customers with self-service options to address their needs.

2. Offer personalized experiences 

Offering personalized experiences to your customers is another effective way to maximize your CLV.

Personalization involves tailoring your interactions with customers to meet their specific needs and preferences, which can help build stronger relationships and encourage repeat purchases.

Personalization is especially important in the context of increasing CLV because it allows you to create more meaningful connections with customers, leading to higher levels of loyalty and engagement.

For example, using email automation to send targeted and personalized messages to customers based on their purchase history or browsing behavior can lead to higher open rates, click-through rates, and, ultimately, conversions.

In addition to personalized messaging, part of creating a personalized experience also includes helping customers find what they want quickly and easily.

This can be achieved through the use of plugins that allow customers to filter products by cost, category, and other relevant factors.

By enabling customers to follow their own personalized journey as they navigate your online store, you can create a more enjoyable and seamless shopping experience, increasing the likelihood of repeat purchases and higher CLV.

Overall, by taking the time to understand your customer’s needs and preferences and tailoring your interactions accordingly, you can build stronger relationships and create a more loyal customer base.

3. Provide loyalty programs

Businesses are well aware that improving customer loyalty is one of the most effective ways to increase your CLV, which is why 90% of companies have a loyalty program in place. Loyalty programs are designed to encourage customers to make repeat purchases by rewarding them for their loyalty.

Loyalty programs can help increase CLV in several ways.

Firstly, they encourage customers to make more frequent purchases by offering incentives such as exclusive discounts or early access to new products. This can lead to higher revenue per customer over time.

Secondly, loyalty programs can help foster a sense of community and connection between customers and your brand. By providing a platform for customers to engage with your brand and other customers, you can build a stronger sense of loyalty and encourage repeat purchases.

There are many different types of loyalty programs you can implement, such as point-based systems, tiered programs, or referral and affiliate programs.

You could even implement engaging elements to your site to nurture loyalty, such as gamification features, where users collect points that can be exchanged for products or discounts. This not only incentivizes repeat purchases but also creates a sense of fun and excitement for customers.

Ultimately, loyalty programs are a valuable tool for maximizing your CLV. By creating incentives for customers to make repeat purchases and building stronger connections with your brand, you can increase loyalty and generate more revenue over time.

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4. Upsell and cross-sell

Upselling and cross-selling are two strategies that can help maximize sales and increase your CLV. In fact, almost three-quarters of sales professionals who upsell and cross-sell claim it drives almost a third of their revenue.

Upselling involves offering customers a more expensive or higher-end version of a product they are considering purchasing, while cross-selling involves suggesting complementary or related products to the one the customer is currently viewing.

Both strategies can be effective in increasing CLV because they encourage customers to spend more money with your brand.

By offering an upsell, you can not only increase the revenue per sale but also provide the customer with a better product or experience, increasing their likelihood of repeat purchases in the future.

Similarly, by cross-selling related products, you can provide customers with additional value and encourage them to spend more money with your brand.

Upselling and cross-selling can also help personalize the customer experience, creating a more tailored and relevant shopping journey.

By suggesting products that are complementary or relevant to the customer’s interests and needs, you can create a more engaging and enjoyable shopping experience, increasing the likelihood of repeat purchases and higher CLV.

5. Provide excellent post-purchase experiences 

Providing great post-purchase experiences is crucial to nurturing more loyal customers and increasing your CLV. When customers make a purchase, they want to feel confident that they have made the right decision and that they will be taken care of after the sale.

To provide excellent post-purchase experiences, it’s essential to communicate with customers and provide them with updates on their order status and delivery.

This can help build trust and loyalty, as customers will feel informed and cared for throughout the process.

It’s also important to handle any customer concerns or issues promptly and efficiently. This includes dealing with customers that are dissatisfied with their purchases.

If a customer wants to return an item after the return period is over, for example, you may want to provide them with store credit, turning what could be a negative customer experience into a positive one.

By providing excellent post-purchase experiences, you can increase customer satisfaction and encourage repeat purchases, leading to higher CLV.

Customers are more likely to return to a brand that makes them feel valued and taken care of, so it’s essential to prioritize the customer experience at every step of the purchase journey.

6. Focus on retention

Focusing on customer retention is a critical aspect of increasing your CLV. By retaining existing customers, you can avoid the high cost of acquiring new customers and boost your profits over time.

One way to focus on retention is by building an online community around your brand. An engaged community can help create a sense of belonging among customers and foster loyalty.

You can create a community by using social media, forums, or other online platforms.

Another way to focus on retention is by creating special offers for existing customers. This could include loyalty programs, discounts for repeat purchases, or exclusive access to new products.

By providing added value to your existing customers, you can increase their loyalty and encourage repeat purchases.

Email automation is another powerful tool for keeping customers engaged and focused on retention. You can use email automation to send personalized messages to customers, such as targeted product recommendations or reminders about upcoming sales or events.

By staying top of mind with your customers, you can encourage them to make more purchases and build long-term relationships with your brand.


Maximizing your customer lifetime value (CLV) is a critical aspect of running a successful online store.

By increasing the value that each customer brings to your business, you can maximize revenue and grow your brand over time. In this article, we’ve covered six key techniques you can use to increase your CLV.

Each of these techniques can help you build stronger relationships with your customers, encourage repeat purchases, and increase your revenue over time.

By implementing these strategies and continuously optimizing your approach, you can position your online store for long-term success.

Remember, the key to increasing your CLTV is to focus on providing exceptional customer experiences at every touchpoint. By doing so, you can build a loyal customer base that will continue to support your business for years to come.

Nathalie Lussier

I’m a writer, technologist, and regenerative farmer. I founded AccessAlly with my husband in one frantic weekend to solve my immediate course platform issues. Over a decade later the company has grown, and our product has evolved to serve millions of learners across the globe.

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