In today’s competitive and fast-changing market, keeping customers around is more important than ever. Most businesses focus a lot on getting new customers, but keeping the ones you already have—and making sure they stay loyal—can bring in more revenue over time. One of the best ways to do this is by learning how to increase customer lifetime value using design thinking.
You’ll learn everything you need to know in this blog. We’ll answer real questions people ask about customer lifetime value (CLV) and how design thinking can help you improve it step-by-step.
Understanding Customer Lifetime Value and How to Increase Customer Lifetime Value?
Customer Lifetime Value (CLV) represents the total revenue a business expects to earn from a customer throughout their entire relationship with the company. It’s not about what one person spends in a single purchase—it’s about the long-term relationship.
If you’re wondering how to increase customer lifetime value, start here:
- Provide better customer service
- Create a smooth, easy user experience
- Build trust with consistent communication
- Encourage repeat purchases with loyalty programs
- Offer valuable content and educational resources
These strategies help you build stronger relationships with your customers, which keeps them coming back for more.
How to Measure and Increase Customer Lifetime Value?
Before you improve something, you need to measure it. Here’s how to calculate CLV:
Customer Lifetime Value = Average Purchase Amount × Number of Purchases per Period × Duration of Customer Relationship
Let’s say:
- A customer spends $50 per order (Average Purchase Value)
- They order 4 times a year (Purchase Frequency)
- They stay loyal for 5 years (Customer Lifespan)
CLV = $50 x 4 x 5 = $1,000
Tips to Increase CLV
- Upsell and cross-sell: Offer additional products that add value.
- Send targeted offers: Use data to offer deals that matter to each customer.
- Offer subscription models: Regular billing encourages long-term relationships.
- Follow up after purchases: Keep the conversation going.
Measuring and improving CLV helps your business grow more efficiently because you’re getting more value from each customer over time.
Ways to Improve Customer Lifetime Value Through Design Thinking
So what exactly is design thinking, and in what ways can it be useful?
Design thinking is a process that focuses on understanding the customer’s problems and creating solutions that meet their real needs. It’s not about guessing. It’s about listening, testing, and improving.
Here’s how to use design thinking to increase customer lifetime value:
1. Empathize
Get to know your customers deeply. What are their struggles? Why do they leave? What delights them?
2. Define
Take everything you’ve learned and identify the real problem to solve. Maybe your checkout process is confusing. Maybe your support is too slow.
3. Ideate
Think of innovative solutions to solve the issue. Don’t limit yourself—think big.
4. Prototype
Build a simple version of your solution. For example, if you’re fixing your checkout, create a new design mock-up.
5. Test
Try it out with real customers. Get feedback. Improve it. Repeat.
This loop never really ends. As you continue improving the customer experience, you naturally increase customer lifetime value.
What is the Relationship Between Design Thinking and Customer Lifetime Value?
The connection is strong. Design thinking is all about solving real problems for real people. When you do that well, people stick with your brand longer. That’s the heart of customer lifetime value.
When you use design thinking:
- You build better products and services
- You reduce churn (people leaving your brand)
- You increase satisfaction
- You create more repeat customers
These all contribute to higher CLV. It’s a mindset shift: Stop designing for the business. Start designing for the customer.
How Does Personalization Affect Customer Lifetime Value?
Personalization is a key part of increasing CLV. Customers now expect experiences that feel personalized to their needs. Generic doesn’t cut it anymore.
Ways personalization boosts CLV:
- Tailored product recommendations: Based on browsing activity and purchase history.
- Customized email marketing: Messages that speak directly to each customer’s interests
- Smart onboarding flows: Help new users get started based on what they want to achieve
The more tailored your service, the more appreciated the customer feels, and the longer they stay.
What Role Does Customer Feedback Play in Increasing Customer Lifetime Value?
You can’t improve what you don’t understand. Customer feedback provides valuable insights into what is working well and what isn’t.
How to collect and use feedback:
- Surveys after a purchase or interaction
- Usability tests for your website or app
- Customer interviews to go deeper
- Support ticket reviews to find common pain points
When you listen and act on feedback, customers feel heard. They’re more likely to stick with you, which increases their lifetime value.
How Can Businesses Implement Design Thinking to Increase Customer Lifetime Value?
Ready to start using design thinking? Here’s a step-by-step way to roll it out in your business:
1. Build a team
Gather people from product, marketing, sales, and customer support. Everyone brings a different point of view.
2. Talk to customers
Don’t assume. Ask. Use interviews, surveys, and user testing.
3. Identify key moments
Map the customer journey. Where do people drop off? Where do they feel frustrated?
4. Brainstorm solutions
Think about how you can make those weak points better.
5. Test and improve
Try your ideas on a small scale. See what works. Then scale up.
Design thinking is an ongoing process. As you keep improving your customer experience, you’ll keep increasing customer lifetime value.
Conclusion
Understanding how to increase customer lifetime value is one of the most important parts of growing a sustainable, profitable business. Using design thinking consulting gives you a repeatable, human-centered way to create better experiences that keep customers loyal.
Here’s a quick recap:
- CLV is about long-term customer value
- Design thinking helps you improve real customer experiences
- Better experiences = happier customers
- Happier customers = higher lifetime value
Start by listening to your customers. Solve their real problems. Make things easier, faster, and more meaningful. That’s how you increase customer lifetime value in a way that lasts.
And remember: loyal customers don’t just buy more—they tell their friends.
Need help implementing design thinking in your business? Reach out for a consultation on how to optimize your customer experience and increase your CLV.
About the author
A Haryanvi by origin, an entrepreneur at heart, and a consultant by choice, that’s how Ajay likes to introduce himself! Ajay is the Founding Partner at Humane Design and Innovation Consulting (HDI). Before embarking on HDI, Ajay established the Design Thinking and Innovation practice at KPMG India, laying the foundation for his later venture. His 16+ years of professional career spans various roles in product and service design, conducting strategy workshops, storytelling, and enabling an innovation culture. He has coached 50+ organizations and 2000+ professionals in institutionalizing design and innovation practices. He loves to blog and speak on topics related to Design Thinking, Innovation, Creativity, Storytelling, Customer Experience, and Entrepreneurship. Ajay is passionate about learning, writing poems, and visualizing future trends!
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