18 Ways to Increase Your Customer Lifetime Value

Acquiring a new customer is expensive. Keeping an existing customer is efficient. The difference between businesses that struggle and businesses that thrive often comes down to understanding this simple truth.

Customer lifetime value (CLV) measures the total revenue a single customer generates throughout their entire relationship with your business—from first purchase to last. Increasing CLV means each customer becomes more valuable over time, creating compounding returns on your initial acquisition investment.

Research suggests that improving customer retention can increase profitability by anywhere from 25% to 95%. The exact figure depends on your business model, but the principle holds universally: customers who stay longer and spend more create sustainable growth.

This article covers 18 practical strategies for increasing customer lifetime value—organised into five categories: retention programs, customer experience, community building, revenue optimisation, and continuous improvement.

Customer Acquisition and Retention Programs

1. Referral Programs

Your best customers are your best marketing channel. Referral programs formalise word-of-mouth, giving customers incentives to recommend you.

Why this increases CLV:

• Referred customers typically have higher lifetime value themselves (they arrive with built-in trust)

• Referrers feel invested in your success (they've put their reputation on the line)

• The program creates additional value for existing customers (rewards for referrals)

Implementation:

• Reward both referrer and referred (mutual benefit)

• Make sharing easy (simple links, clear instructions)

• Track and acknowledge referrals promptly

A loyalty program can incorporate referral bonuses—extra stamps or points when members bring friends who join.

2. Loyalty Programs

A formal loyalty program creates tangible reasons to return. Customers earn progress toward rewards with each purchase, creating switching costs and ongoing incentive.

Why this increases CLV:

• Increases visit frequency (motivation to earn)

• Increases retention (progress already earned creates commitment)

• Provides data for personalisation (insights into behaviour)

• Creates direct communication channel (push notifications, emails)

Implementation:

• Choose the right structure (stamps for frequency, points for spending)

• Set achievable thresholds (rewards within realistic reach)

• Add emotional elements (birthday rewards, surprise bonuses)

• Use digital platforms for data and communication

Perkstar provides the infrastructure: digital stamp cards, push notifications, birthday rewards, and analytics—all the tools for a loyalty program that genuinely increases customer lifetime value.

3. Re-Engagement Strategies

Not every customer who goes quiet is lost forever. Systematic re-engagement can recover valuable relationships before they're gone.

Why this increases CLV:

• Recovers customers who would otherwise contribute zero future value

• Costs less than acquiring replacement customers

• Often reveals why customers lapsed (actionable feedback)

Implementation:

• Identify lapsed customers early (before they've completely disengaged)

• Reach out with genuine value (not desperation)

• Offer incentive to return (welcome-back rewards)

• Address potential issues ("We'd love to know what we could do better")

Perkstar's lapsed customer campaigns automate this—configure triggers and messages once, and re-engagement happens systematically without manual monitoring.

Customer Experience

4. High-Quality Customer Service

Every interaction shapes customer perception. Poor service drives customers away; excellent service creates advocates.

Why this increases CLV:

• Customers stay longer when problems are handled well

• Service quality differentiates from competitors

• Positive experiences generate recommendations

Implementation:

• Train staff thoroughly on service standards

• Empower staff to resolve issues without escalation

• Follow up after problems to ensure satisfaction

• Make contact easy across channels customers prefer

Research shows a significant percentage of customers will leave a business after poor service—even if they like the product. Service isn't secondary to product; it's equally essential.

5. Personalised Experiences

Generic treatment makes customers feel like numbers. Personalisation makes them feel known and valued.

Why this increases CLV:

• Personalised recommendations increase relevance (and purchases)

• Personal recognition creates emotional connection

• Tailored communication performs better than generic messaging

Implementation:

• Use names in communication

• Reference purchase history when relevant

• Tailor offers to demonstrated preferences

• Acknowledge milestones (birthdays, anniversaries, achievements)

Digital loyalty platforms enable scalable personalisation. Perkstar's Birthday Club automatically sends birthday rewards. Push notifications can be personalised with names and progress updates.

6. Customer-Centric Approach

Put customers at the centre of decisions. Ask "how does this benefit them?" before "how does this benefit us?"

Why this increases CLV:

• Products and services better match what customers actually want

• Customers feel understood and prioritised

• Reduces churn from misaligned offerings

Implementation:

• Gather customer input regularly (surveys, conversations, feedback)

• Involve customer perspective in product/service decisions

• Communicate how customer feedback shaped changes

• Measure success by customer outcomes, not just revenue

7. Actionable Feedback

Collect feedback, then act on it. The collection without action is worse than not asking—it raises expectations that go unmet.

Why this increases CLV:

• Fixes problems before they cause churn

• Makes customers feel heard and valued

• Reveals opportunities you wouldn't have identified internally

Implementation:

• Ask for feedback at multiple touchpoints

• Make providing feedback easy and quick

• Identify patterns across feedback

• Communicate changes made in response ("You asked, we listened")

Customers who see their feedback implemented become invested in your success. They've shaped your business; they want to see it thrive.

8. Smooth Onboarding

First impressions set expectations. A confusing or frustrating start creates doubt that persists.

Why this increases CLV:

• Customers who start well are more likely to continue

• Clear onboarding reduces early churn from confusion

• Positive first experience creates goodwill that survives later hiccups

Implementation:

• Make joining/starting as simple as possible

• Provide clear next steps after initial engagement

• Welcome new customers warmly

• Check in early to ensure satisfaction

For loyalty programs specifically: frictionless enrollment matters. Perkstar's wallet integration (QR code scan, card saves to phone wallet) removes signup barriers that cause early abandonment.

9. Proactive Support

Don't wait for problems to become complaints. Anticipate needs and address them before customers have to ask.

Why this increases CLV:

• Prevents issues that would cause churn

• Demonstrates care beyond the transaction

• Builds trust through attentiveness

Implementation:

• Identify common issues and address them preemptively

• Check in with customers at key moments

• Provide information before it's needed

• Notice warning signs (declining engagement) and respond

Push notifications enable proactive communication: "Your nails are probably due for a fill" or "You're close to your reward—don't forget to visit!" These reach customers with helpful timing.

10. Value-Added Content

Provide value beyond your core product or service. Education, entertainment, and information create reasons to engage.

Why this increases CLV:

• Positions you as an expert worth staying with

• Creates engagement between transactions

• Provides value that competitors may not match

Implementation:

• Share expertise through blog posts, tips, or guides

• Educate customers on getting more from your products

• Provide industry insights or trends

• Create content that genuinely helps (not thinly-veiled marketing)

Community and Relationship Building

11. Relationship Building

Move beyond transactions to genuine relationships. Customers who feel known stay longer than customers who feel processed.

Why this increases CLV:

• Emotional connection creates loyalty beyond convenience or price

• Relationships survive occasional mistakes

• Connected customers become advocates

Implementation:

• Remember customers as individuals (names, preferences, history)

• Show genuine interest beyond the sale

• Communicate personally, not generically

• Go beyond expected when opportunities arise

12. Community Building

Create belonging around your brand. Customers who feel part of something bigger have reasons to stay beyond individual transactions.

Why this increases CLV:

• Community creates identity attachment (leaving means losing belonging)

• Members reinforce each other's loyalty

• Community generates content and advocacy

Implementation:

• Create spaces for customers to connect (events, online groups)

• Recognise and celebrate community members

• Foster connections between customers, not just with you

• Give community members exclusive access or benefits

Loyalty program members are a natural community. Recognise them collectively, celebrate milestones together, and create shared identity around membership.

Revenue Optimisation

13. Cross-Selling and Upselling

Increase the value of each transaction by offering relevant additional or upgraded options.

Why this increases CLV:

• More revenue per customer without additional acquisition cost

• Customers discover offerings they might have missed

• Deeper product/service engagement increases stickiness

Implementation:

• Recommend genuinely relevant additions (not random upsells)

• Time suggestions appropriately (not aggressively)

• Frame as help, not sales ("This would go well with...")

• Use purchase history to inform recommendations

The key word is "relevant." Thoughtful suggestions help; pushy upselling annoys. Know the difference.

14. Subscription or Membership Models

Recurring revenue models increase CLV by design. Customers commit to ongoing relationships rather than one-off purchases.

Why this increases CLV:

• Predictable, recurring revenue

• Reduced churn (inertia keeps subscriptions active)

• Ongoing relationship rather than repeated acquisition

Implementation:

• Offer membership with ongoing benefits

• Provide meaningful value for the commitment

• Make the ongoing relationship clearly worthwhile

• Consider discounts for annual commitments (better retention)

Perkstar's membership card type enables this model—ongoing benefits in exchange for ongoing commitment.

15. Dynamic Pricing and Promotions

Strategic pricing and promotions can increase both acquisition and retention when applied thoughtfully.

Why this increases CLV:

• Promotions can reactivate lapsed customers

• Strategic discounts capture price-sensitive customers who'd otherwise leave

• Time-limited offers create urgency and action

Implementation:

• Target promotions to specific customer segments

• Use promotions strategically, not constantly (avoid training customers to wait for discounts)

• Track which promotions drive lasting behaviour vs. one-time response

Push notifications enable targeted, timely promotions: "Quiet Tuesday? Double stamps today only!" reaches the right customers at the right moment.

16. Smooth Payment Experience

Friction in payment causes abandoned transactions and creates negative impressions.

Why this increases CLV:

• Easy payment removes barriers to purchase

• Positive checkout experience influences overall perception

• Smooth processes encourage repeat transactions

Implementation:

• Accept payment methods customers prefer

• Make checkout fast and simple

• Handle payment issues gracefully

• Provide receipts and confirmation promptly

Product Development and Innovation

17. Transparency About Future Direction

Share where you're headed. Customers who see a compelling future want to be part of it.

Why this increases CLV:

• Builds anticipation and excitement

• Reduces churn from uncertainty ("Is this business going anywhere?")

• Creates investment in your journey

Implementation:

• Share upcoming improvements and launches

• Communicate your vision and values

• Involve customers in development (beta testing, feedback)

• Celebrate progress and milestones publicly

18. Continuous Improvement

Never stop getting better. Businesses that stagnate lose to competitors that evolve.

Why this increases CLV:

• Customers have no reason to leave for something better (you keep getting better)

• Improvement demonstrates commitment

• Evolution keeps the relationship fresh

Implementation:

• Gather and act on customer feedback continuously

• Monitor industry trends and adapt

• Invest in team development

• Regular review and refinement of products, services, and processes

The businesses with the highest customer lifetime value aren't static—they're constantly improving based on what they learn from customers.

Putting It Together

These 18 strategies work together. Strong customer experience makes loyalty programs more effective. Community building amplifies retention. Continuous improvement ensures everything else keeps getting better.

Start with the highest-impact, lowest-effort strategies:

1. Implement a loyalty program (systematic retention with minimal ongoing effort)

2. Add birthday rewards (automated emotional connection)

3. Configure re-engagement campaigns (automated recovery of lapsed customers)

4. Train staff on service excellence (every interaction becomes an opportunity)

5. Ask for and act on feedback (improvement guided by customer insight)

Perkstar provides the foundation for the retention-focused strategies: digital loyalty cards, push notifications for communication and promotions, Birthday Club for automated celebration, lapsed customer campaigns for re-engagement, and analytics to track what's working.

The 14-day free trial lets you implement these strategies immediately.

Start your free trial at Perkstar →

Customer lifetime value isn't just a metric—it's a philosophy. Every strategy here reflects a simple truth: customers who feel valued, served well, and genuinely appreciated stay longer and spend more. Build your business around that truth, and CLV takes care of itself.