In the world of online commerce, we hear a lot about to how to sell more and earn more. We worry about website design, testimonials, product descriptions and great graphics. We stress about copywriting and customer security and the color of our “buy now” buttons. All of this is important, to be sure, and it all comes down to one thing: creating that elusive “delighted customer.” Yet customer delight isn’t always created on the customer side of the website. There’s one critical element to your customer’s experience that can be made – or broken – before they ever get to your site.
Does happiness matter in business?
Before we get into the technical side of customer delight, let’s talk about the real value of that delighted customer.
As Peter Drucker famously said, “The purpose of business is to create a customer and grow that customer.” So if we look at our marketing and customer acquisition efforts strategically, then the purpose your business should be to build a higher lifetime value (LTV) for your customers. The LTV is basically an estimate of how much you expect a given customer to spend with you over the months or years you do business together. The higher the LTV, the more money you make against the cost of acquiring that customer.
Kissmetrics has a great infographic that helps explain the variables that go into determining your customer LTV:
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