Email Marketing typically has a great return on investment due to its low ongoing cost of delivery coupled with a large potential audience. While many email marketing messages may be ignored or missed, the low cost of sending makes this approach cost effective for the customers that are reached. The lifetime value of an email subscriber is calculated using the lifetime of email subscription.
Mobile Applications or Apps communicate with users by sending quick, attention-grabbing, push notifications. A push notification can provide users with instructions, reminders, updates, and more. Additionally, many apps use loyalty programs to increase app use and engagement. The lifetime value of an app user is calculated using the lifetime the app is installed.
SMS/MMS Messaging allows brands to text their promotions to opted-in customers. Text messaging supports 2-way interaction making it the most engaging channel. With 94% of text messages being opened within five minutes of being sent according to Practical Ecommerce, messaging offers a great opportunity to reach customers. The lifetime value of an SMS/MMS user is calculated using the lifetime the customer is subscribed to the SMS campaign
The common thread between all three methods for calculating the CLV is the lifespan of the customer. Maximizing your subscriber lifespan is the easiest way to increase your customer lifetime value. Customer engagement techniques are used to increase the lifespan of a customer.
The three principles of customer engagement are:
- Sending messages at an acceptable frequency
- Sending messages at the right time
- Sending messages with appealing content