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5 Ways for Ecommerce Brands to Increase Customer Lifetime Value


An image with symbols representing customer lifetime value with growth charts and customer symbols in blue and purple.

In ecommerce, the concept of Customer Lifetime Value (LTV) is a pivotal metric in defining the long-term success and sustainability of your brand. It’s equally as important and logical to spend time maximising the value of customers you already have, instead of allocating all your resources to finding new customers. 

Lifetime Value accounts for the total financial worth of a customer to your brand across the lifetime of their relationship with you. For example - if an average customer buys your coffee machine once for $200 and then buys $20 coffee pods every month for a year, then your average customer lifetime value is $440.

This measure not only outlines the financial health of a company but also reflects its ability to create lasting customer relationships. By working to maximize lifetime value, ecommerce brands increase their revenue and also solidify their brand name and trust. 

That being said, here are 5 ways to increase your customer lifetime value.

1. Hyper-Personalized Email Marketing example email made for Z Gallerie

These days there are so many marketing emails going out everyday and so much spam around that we’ve learned to mentally filter out and ignore all emails that may even look like spam to us. Not only do our email providers have spam filters but so do our minds. 

The most efficient way to communicate with your customers at scale now is to hyper-personalise each email according to their location, needs, prior feedback and purchases. This is what will make your brand stand out in a sea of generic email blasts. 

Here’s how your ecommerce brand can leverage it to boost customer lifetime value - 

Segmentation: Start by segmenting customer data into fine-tuned segments according to location, purchase history, purchasing patterns, browsing behavior, engagement levels & prior feedback– every detail can help tailor your message so it truly feels like it was made for an individual rather than an email list. 

Hyper-personalised Messages: Once you've made the segments, it's time to write hyper-personalised emails. Treat each segment individually - put yourself in your customer’s mind and think about what they’d want to read that shows them that there’s a human behind these emails, not a faceless brand.

At we’ve had the most success with emails like - “Hey John, hope the winter in New York wasn’t too harsh this year. I remember last year you mentioned not liking the color of the bedsheet you purchased, we just released a new set of colors. Have a look and let me know your thoughts!”.

Automate for Efficiency: With the power of AI and automation tools, personalized emails don't have to be a manual slug. Set up triggers based on customer actions (or inactions) to send the right message at the right time. Triggers could include cart abandonment, a certain time passing after a purchase etc. runs AI-powered hyper-personalised email/sms marketing and segmentation at scale for leading ecommerce brands. Our AI manually writes emails on a 1-1 level for your entire list, mentioning location, prior feedback & purchases to increase owned channel sales by 10-25%. 

By adopting hyper-personalized email marketing, ecommerce brands can create a direct line of communication that feels both personal and relevant, significantly enhancing customer engagement and by extension, lifetime value.

2. Optimizing the Customer Experience platform getting a positive response from a customer who just purchased from an ecommerce store.

An optimized customer experience essential in ecommerce, acting as a magnet that not only attracts but also secures customer loyalty, lowers churn, drives repeat purchases and thus maximizes lifetime value (LTV). By smoothing out any friction points and creating a seamless journey from discovery to purchase and beyond, ecommerce brands can significantly increase customer satisfaction and encourage repeat business.

Here’s a blueprint for refining the customer experience within your ecommerce brand - 

Streamline Navigation and Checkout: Ensure that your website / app is intuitive and user-friendly. Simplify the navigation process and streamline the checkout experience to minimize cart abandonment. This means removing all unnecessary information, re-enforcing their choice on checkout and ensuring they have all the information they need. A smooth, hassle-free journey encourages customers to complete purchases and return for more.

Personalize the Shopping Experience: Harness customer data to offer personalized shopping experiences. From tailored product recommendations to customized marketing messages. showing customers that you understand their preferences can significantly boost engagement and conversion rates

Enhance Customer Support: Provide exceptional customer service across all touchpoints. Whether it’s through live chat, social media, or phone support, being readily available to assist with inquiries or resolve issues can turn a potential negative experience into a positive one, fostering trust and loyalty.

Solicit and Implement Feedback: Actively seek out and listen to customer feedback. Implementing changes based on their suggestions not only improves the shopping experience but also shows customers that their opinions are valued, deepening their connection to your brand.

By focusing on these key areas, ecommerce brands can create an enjoyable and frictionless shopping experience that not only delights customers but also encourages them to become lifelong advocates of the brand, thereby increasing their lifetime value.

3. Implementing a Paid Loyalty Program loyalty and rewards program using the example of Z Gallerie

In ecommerce, where brands and stores are a dime a dozen, you need to incentivise or give your customers a reason to stay loyal. A paid loyalty program does exactly that by offering exclusive benefits in exchange for a membership fee, directly contributing to increased customer lifetime value (LTV).

Having your customers pay a monthly membership fee drives repeat purchases so customers feel like they're making "full use" of the membership. Furthermore, it also deepens the customer-brand relationship through a sense of exclusivity and belonging.

Here's a strategic approach to leveraging a paid loyalty program for your ecommerce brand -

Offer Exclusive Benefits: Structure the program to provide members with special perks such as early access to sales, members-only discounts, exclusive products and a rewards or points based system. These benefits make customers feel valued and encourage them to maintain their membership.

Incentivize Repeat Purchases: Reward loyalty with points, discounts, or gifts that members can earn with every purchase. This not only encourages ongoing engagement but also increases the frequency and size of purchases over time. 

Deliver Personalized Experiences: Use the membership data to tailor product recommendations and offers, enhancing the shopping experience. Personalization reinforces the value of the loyalty program, making each member feel uniquely appreciated. 

Collect and Act on Feedback: Incorporate a feedback mechanism within the program to gather insights on how to improve the offering. Listening to your members and adapting the program based on their preferences fosters a stronger connection and loyalty to your brand. Pay extra attention to these customers as they are your most loyal few. runs paid loyalty programs for leading ecommerce brands. Running a paid loyalty program with results in 1.9x higher lifetime value per customer in comparison to legacy loyalty program providers.

By offering tangible value and a personalized experience, you can transform casual shoppers into loyal advocates for your brand.

4. Starting or Refining SMS Marketing


By almost all A/B tests and for almost every brand, SMS marketing is a lot more efficient and drives higher conversions than email marketing. SMS is just a lot more intimate in comparison to email, where hundreds of brands are competing for attention. SMS wise you might be the only brand in the inbox, surrounded by friends and family.

Here's how to leverage SMS marketing to its full potential -

Timely and Relevant Messages: Utilize SMS for time-sensitive promotions, reminders for abandoned carts, and alerts for new product launches. The direct nature of SMS ensures your message is seen promptly, increasing the likelihood of immediate action. Do not use SMS as often as email, as you will dilute your trust and lose your position in their inbox incredibly quickly.

Personalize Communication: SMS needs personalisation. You're surrounded by friends and family that are sending them messages meant just for them. So go beyond the basics by personalizing SMS messages based on customer data such as past purchases, browsing behavior, and preferences. 

To take SMS personalisation a step further,'s personalisation engine manually writes each message for the customers on your list, ensuring you are seen and remain as a trusted source of value in their inbox.

Simplify Purchase Processes: Use SMS to streamline the buying journey. Send links that take customers directly to their cart or to check out specific products they've shown interest in. This convenience can significantly reduce friction and encourage quicker purchase decisions.

Encourage Two-Way Dialogue: Make your SMS channel a two-way street by inviting feedback and questions. This level of interaction feels a lot more natural in the SMS environment, all while providing valuable feedback and also building a stronger, more personal connection with your customers.

Measure and Optimize: Continuously track the performance of your SMS campaigns through metrics such as open rates, conversion rates, and feedback received. Use these insights to refine your strategy, ensuring your messages always hit the mark.

By use these strategies, ecommerce brands can transition SMS marketing from a simple communication tool into a lever for increasing engagement, top line revenue, satisfaction, and lifetime value.

5. Using Customer Feedback for Growth platform using customer feedback to enhance user experience.

In the competitive realm of ecommerce, customer feedback is more than just opinions - it's what drives a brand towards improvement, innovation, and increased customer lifetime value (LTV). Engaging with and acting on customer feedback signals to your customers that their voices matter but also provides actionable insights to refine your offerings and customer experience.

Here’s how to effectively harness customer feedback for your ecommerce brand - 

Proactively Ask for Feedback: Don’t wait for customers to come to you with their thoughts. Actively seek out their opinions on your products, offerings and overall shopping experience through surveys, feedback forms, and direct outreach. This proactive approach demonstrates your commitment to customer satisfaction and continuous improvement.

Integrate Feedback Across Channels: Leverage every touchpoint for feedback, from your website and social media platforms to email and SMS marketing. This inclusive approach ensures you capture the voice of your entire customer base, no matter what segment, channel or engagement level. 

Act on the Feedback: Collecting feedback is only the first step - the real value is in acting on it. Analyze the insights gathered to identify patterns and areas for improvement. Whether it’s enhancing product quality, streamlining the user experience or addressing service gaps, make tangible changes based on customer input.

Close the Feedback Loop: Once you’ve made adjustments based on customer feedback, communicate these changes back to your customers. This not only shows that you value their input but also invites them to be part of your brand’s journey.

Celebrate Positive Feedback: When you receive positive feedback, share it widely – with your team for motivation and with your customer base for social proof. Highlighting these positive experiences can help enhance your brand’s reputation and encourage more customers to share their stories.

By efficiently leveraging customer feedback, ecommerce brands can create a more responsive, customer-centric business model that exceeds customer expectations, driving loyalty and increasing lifetime value (LTV).