Thanks to video content gaining more and more popularity in the digital world, new marketing opportunities are arising.
Videos can be great marketing tools!
You can use video content to generate leads, nurture existing customers, and put sales on repeat.
This guide tells you all about it. More specifically, we will cover:
- What the customer lifetime value (CLV) metric is, and how to calculate it
- How video marketing can help you increase CLV
- Four ways in which you can improve your video marketing strategy
We also cover seven types of videos you can include in your CLV-boosting marketing strategy.
Let’s get started!
Table of Contents
What Is Customer Lifetime Value?
How Video Marketing Can Help You Boost CLV
4 Tips for Taking Video Marketing to the Next Level
What Is Customer Lifetime Value?
Customer lifetime value (LTV or CLV) is an estimated value of a customer's worth to a business over the entire time span in which the business and customers engage in their transactional relationship.
Simply put, CLV is a way of measuring how much income a customer can generate for a business.
Since CLV can tell you the potential worth of a customer, it helps you focus on existing high-value customers rather than spend money on low-value leads.
Great news, considering that a 5% increase in customer retention can bring you a 25-95% increase in profits.
Additionally, your success rate when selling to an existing customer is 60-70%, while only 5-20% when selling to a new customer.
Not only that but lead acquisition can cost you up to five times more than customer retention. It’s important to note though that acquisition is the first stage of CLV.
Let’s take a closer look at the phases of CLV below.
The 3 phases of CLV
Customer lifetime value has three stages you should be aware of. Think of this structure as a simplified sales funnel.
The three stages include:
- Acquisition: generating leads and getting people interested in your brand
- Retention: reintroducing existing customers into the sales pipeline
- Renewal: convincing customers to purchase your product again and again
To increase customer lifetime value, you will have to keep customers engaged over all three phases.
You'll be happy to hear there's an easy way to do that—video marketing.
How Video Marketing Can Help You Boost CLV
In 2022, the average digital content consumer spends around 100 minutes watching online videos daily. Moreover, 9 out of 10 people reported that they wanted to view more brand-generated video content.
Amazing news right?
No wonder 86% of businesses leverage videos as an integral part of their marketing strategy and 50% of businesses report the video as their most effective type of content marketing.
Let's see how video content helps marketers throughout all three CLV phases:
Acquisition
During the lead generation phase, you want to get your brand in front of as many people as possible.
And guess what?
Videos are a great way to do that by helping you:
- Convey your brand’s message in an easy to remember format
- Reach out to your audience in an engaging way
- Break the ice and start conversations with new customers
An increasing number of marketers agree on the efficiency of video in the acquisition phase. Specifically, as much as 86% of marketing professionals consider video content as an effective tool for lead generation.
Retention
But lead gen is not the only thing videos are good for. Namely, you can use video content to make sure your new customers are here to stay.
To be more specific, videos help you improve customer retention by:
- Boosting customers’ trust in your brand (think video testimonials)
- Efficiently communicating what your brand stands for
- Simplifying onboarding and ensuring customer success
Renewal
In the renewal phase, you can use videos to:
- Announce new product features
- Deliver personalized content to nurture customer relationships and reward loyalty
- Keep the conversation alive
But what types of videos could help you do all that?
7 Types of Videos You Can Use to Increase CLV
Let’s break down seven of the most common videos used by marketers and see which ones you can use for different CLV stages.
Video Types for the Acquisition Phase
Sponsored content
There’s no secret that online content creators leverage their skills and make money vlogging, documenting exciting parts of their lives, and creating other types of video content for YouTube, TikTok, and other social platforms.
The best part here is that you can collaborate with these creators through sponsored content.
This means that you can provide an influencer with free products or money to create content about your brand—just like Castrol EDGE did in this YouTube video.
Influencer marketing helps you place your product front and center on a virtual stage where hundreds of thousands—if not millions—are watching.
Video ads
The majority of today’s popular social media platforms offer businesses the ability to promote their services and products through video ads.
Social media video ads are a great way to target new audiences and raise brand awareness among potential customers.
For instance, Nokia uses Facebook video ads to promote a new event.
Image Source: Facebook
Customer testimonials
Customer testimonials serve as social proof which conveys authenticity and puts a spotlight on your product’s quality.
All this can lead to an increase in customer perceived value.
Zoom is a great example of a brand that leverages the power of customer testimonials in video format.
Image Source: YouTube
Video Types for the Retention Phase
Explainer videos and tutorials for new product features
Explainer videos are a great way to boost customer engagement and generate demand.
Moreover, explainer videos can be great educational tools that can effectively address customers' pain points and showcase what your product can do.
Take Fonolo’s explainer video as an example. It’s short, engaging, and manages to transmit the brand’s message in an easy-to-understand manner.
Image Source: YouTube
Behind-the-scenes and company culture videos
Behind-the-scenes content and videos on company culture will help customers get to know your brand better. These video types are a great way to tell your customer base your values as a company and what you stand for. Just make sure your youtube banner background and other channel elements look professional and are of top quality.
Take a look at Google’s approach to combining video testimonials, corporate culture, and behind-the-scenes content in the same video.
Image Source: YouTube
Product Walkthrough & Onboarding Videos
Another great way to ensure your customers don’t switch sides is to offer them a great onboarding experience through video product walkthroughs.
Over 85% of customers say that their loyalty toward brands is highly dependent on the quality of the onboarding content.
So, onboarding and product walkthrough content deserve your attention and will most certainly lead to happy customers who will turn into repeat customers.
But how do you do that?
Dell’s high-quality product walkthrough video will surely give you some ideas on how to get started.
Image Source: YouTube
Video Types for the Renewal Phase
Webinars
Webinars are an excellent tool for nurturing existing customer relationships while also reaching out to new leads that are interested in what you’re pitching.
Today, there are countless options when it comes to live video streaming platforms you can host your webinars on.
Just make sure you’re choosing one that’s convenient for both you and your audience.
Plus, you might want to make sure the platform you’re choosing to stream your live webinar on offers video hosting services as well.
You could then leverage that service to make the webinar available as a recording for customers who couldn't join the live event. This way, you’d be able to reach a wider audience with the same video content.
That’s exactly what IgniteVisibility did with this SEO webinar.
Image Source: YouTube
Now, head over to the next section to learn four efficient techniques to step up your video marketing strategy.
4 Tips for Taking Video Marketing to the Next Level
Video marketing can be intimidating at first. But don’t worry, we've got four tips that will help you ensure your videos yield the results you want.
It’s important to note that the quality of the videos, as well as your video editing techniques, are just as important as your video marketing strategy. They go hand in hand.
So, make sure your videos are up to par with the brand’s message and guidelines as well as the quality standards of your audience.
Tip #1 Keep it short and engaging
Rumor has it that a human has a shorter attention span than a goldfish.
This may or may not be true; but one thing is certain: video views decline after just two minutes (at least on Youtube).
Moral of the story?
Keep your videos concise and engaging.
Tip #2 Make it relevant
To ensure your videos are captivating viewers’ attention, you have to make sure they’re catering to the audience’s preferences.
So, make sure your audience-targeting strategy includes people’s interests. This way, you’ll ensure you’re not barking up the wrong tree and displaying your content in front of uninterested viewers.
Tip #3 Ensure it's actionable
You’ve created a relevant video, people watched it, now what?
Viewers need to have clear instructions on what you want them to do after watching your content.
Therefore, it’s essential to include a clear call to action that prompts users to continue the interaction with your brand.
Tip #4 Fit the context
Another amazing strategy you can implement to elevate your video content is leveraging current events and seasonal happenings to make the videos fit the current context.
For example, you could make a Christmas-themed video around the winter holiday season to wish your customers “happy holidays”.
Wrapping Up
Hopefully, you’re feeling ready to jump on the video marketing bandwagon and boost your customer lifetime value with great, relevant content.
Don’t forget that your customers don’t want to only see content about your product. Tap into the power of adjacent topics and provide real value through your videos.
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Author: Amir Shahzeidi Bio: Amir is the Head of Search at Uscreen, an all-in-one video monetization platform that empowers video entrepreneurs and creators to monetize their content and build thriving businesses around their videos. |
