Content Is Key To Customer LTV

nitantialur

Written by nitantialur

  • Content

When it comes to consumers, one and done is not ideal.

Marketers tend to place an emphasis on sales and large purchases, but the secret to consistent results lies in customer loyalty.

LTV

LTV, or lifetime value, refers to the total amount a single customer will spend with a brand throughout their lifetime. While it comes in several different acronym variations – CLTV or CLV, or even LCV – it all begins and ends with the customer and their satisfaction with the brand or product. 

Lifetime value customers are crucial assets to any brand. Loyal and returning customers are not only a steady source of revenue but also more likely to purchase new and different products from the brand rather than leaving entirely.

To determine LTV, marketers need to track the customer’s average order value, frequency of orders, and the average length customers stay customers. However, the key to a high and successful LTV all starts with solid content.

The New Funnel 

This is the age of information. Today’s consumer funnel looks drastically different than it did five – or even two – years ago. Between an oversaturated market and secretly sponsored posts, customers find themselves in an endless loop of searching for trustworthy, reliable, and informative content.

In a recent study, it was revealed that nearly half of Gen Z consumers use TikTok as their primary search engine rather than Google. Not only are customers researching brands like never before, but they’re also doing it on several different platforms.

Educational Content

Honest, authoritative, and educational content surrounding products is crucial to obtaining high LTV customers. Content now needs to be packed with everything customers could possibly need to know about the product while not being so dry as to lose them; marketers need to teach consumers without making it feel like a classroom. Content should:

  • Include key details and product information 
  • Highlight brand story 
  • Address common complaints and possible churn causes
  • Feature independent voice
  • Avoid setting unrealistic expectations

Previous content that was brimming with filtered images and persuasive jargon resulted in single sales and low LTV as the product rarely held a candle to unrealistic expectations set in content.

Content that’s accurate, credible, and provides detailed information will keep customers in the funnel while increasing their chances of becoming a lifetime value customer.

Health and Wellness Client Story

Here at GeistM, content is king. While there are many different styles and forms it can take, the content always strives to achieve one thing above all: brand authenticity.

After noticing customers canceling after the first shipment, a Health & Wellness client asked for content specifically designed to help with LTV. With that in mind, we created two content pieces to be placed on Facebook, Outbrain, and Google developed around educating the customer and providing them with everything they needed to know about both the brand and the product, especially highlighting its strengths.

Initial ROAS from Month 1 showed our efforts at .33, while after eight months of the content performing, ROAS jumped to 1.06 with the same Month 1 customers reordering with a 25% retention rate.

Informative and engaging content paired with network diversification leads to positive customer LTV and a steady stream of revenue intake. 

Learn how GeistM’s top-tier content and proprietary technology can help boost your brand’s LTV!