5 Contact Center Benefits of Customer Lifetime Value

Customer Lifetime Value in Contact Centers

The perception of what a contact center is designed to do has changed with the focal point on improving customer experiences and generating revenues. It is not about saving the company some money or about delivering customer service. It is about cultivating the assets or your customers and conserving them. A contact center is an important aspect throughout the journey of the customer. It helps a customer from the moment he researches a product to the moment he purchases it. No step in the journey of the customer is as important as onboarding with regards to protecting and growing in the short as well as the long term. Throughout the journey of the customer, the contact center persists the objectives of customer experience such as loyalty, retention, and advocacy which conclusively move towards the customer lifetime value.

The onboarding process varies from one organization to another and refers to the first 90-100 days of the product ownership by the customer. After the initial period, an organization can enjoy the benefits of customer loyalty as the customer must have already experienced the service, and decided whether to continue the relationship or not. Also, the probability of experiencing defection during this phase is highest. The onboarding stage is important in the customer’s journey because it represents the opportunity to strengthen the bond between the company and the customer. When this bond has been established successfully, it impacts all the aspects of customer lifetime value including retention, advocacy, and loyalty.

The onboarding stage of the customer lifetime value is also important for a contact center since it can add value to the business as well as the customer.  The contact centers are more interested in improving the efficiency of the company and supporting the customer than anything else. Thus, these contact centers must be agile; assuring that the best possible agent is made available for each customer call at the right time. One of the critical steps during this phase is to research the available customer data and utilize the same during the customer calls. Once loyalty is accomplished, organizations can start establishing brand advocates who will remain loyal to the organization for a lifetime.

Customer Lifetime Value is the primary metric of customer centricity. However, determining lifetime value is a troublesome task. Even if you have a solution in place, accounting it on an individual per-customer basis and that too quickly is severely arduous.

Five Contact Center Benefits of Customer Lifetime Value:

Assess profitability: Customer Lifetime Value can be used to assess the profitability of the ongoing acquisition strategy with the upcoming future strategy. The assessment policy helps in deciding the outcome of the strategy to better understand the retention and development process. CLV can also help in evaluating the consequences of other parameters like customer satisfaction rates, sales channel, pricing policies, etc. It is also one of the effective ways to signify the real worth of a lead, and the costs involved to convert the same.

Anticipate with CLV to attain customer delight: Measuring and analyzing customer behavior is important but to formulate strategies based only on behavior is really difficult. In such cases, customer lifetime value can be of utmost importance. Contact centers can use the calculated CLV of the customer along with customer satisfaction score, behavioral pattern, etc. to offer the best possible deal and retain customers of high longevity. This will help you to prepare the right strategies for customers with increased customer profitability.

Prioritize the callers: A contact center should be smart enough to manage priority customers. Based on the customer lifetime value, agents should be able to make decisions before even answering the call. With the help of customer’s unique ID, agents can search their CLV. Accordingly, agents can route the  call to the beginning of the queue with highly skilled agents for a customer with high CLV. Similarly, a low-CLV customer call can be routed to the lower-cost contact center.

Resolve Query quickly and accurately: Contact centers can now quickly resolve problems with the help of Customer Lifetime value. Customers with high CLV can be given priority and the agents can work on proactive basis to resolve their problems to make sure that these customers are happy with the service offered

Measure Return on Investment: Accumulated CLV about the customers who bring you maximum revenue can help you prepare various business reports. With these reports, you can compare the CLV of the customers to determine the best strategy to retain them. This will help in calculating the ROI of the contact center and will also identify the goals that agents should work upon.

As the contact center plays a crucial role in delivering the best possible customer experience, Customer Lifetime value metrics help in determining better automation logic and apprise customer care outcomes. Stabilizing operational efficiency with customer satisfaction and nurturing customers throughout the customer journey can definitely showcase unprecedented customer experience along with a better and enhanced CLV.