You will probably have heard the phrase “customer value” frequently, especially if you are a customer-centric business, but in order for you to maximize the value of your customers, you need to know what they want.
Since the dawn of time, man has been trying to determine the best way to persuade others to do what he wants. In the past, that meant buying them, threatening them, or even robbing them of their money. In a new age, that means giving them a better deal. This strategy is known as customer value optimization. Customer value optimization is a process by which your organization strategically addresses the needs and concerns of your customers, in order to drive increased customer retention and long term value to your organization.
If you feel like your business is stuck in the mud, or if you want to make more sales, then in this article I’m going to introduce you to an incentive for your business. It’s about adjusting your marketing plan and your customer focus. Whether you are new to the industry or a seasoned professional, you need to keep in mind what really matters: Your CUSTOMERS. If you really want to boost your business, make people the top priority for every action. Let customers log in with one click and enhance the in-store experience with Google One tap Login Extension for Magento 2. Optimizing customer value is what Starbucks, McDonald’s, Amazon have used to build their empires. No matter what product you sell, this system will change the way you manage and run your business.
Maximising customer value without detours
Customer Value Optimization (CVO) is the key to the long-term growth of your business and makes you the leader in customer retention.
How easy is it to optimize custom values? No.
Is it necessary to optimise public services? Yes.
There are only three ways to grow your business:
- Increase the number of customers.
- Increase in average transaction value per customer.
- Increase the number of transactions per customer.
These are the resources the system uses to optimize value for the customer. Customer value optimization is about creating an exceptional customer journey and increasing the return on investment of all marketing efforts. Optimizing customer value is about creating a sales channel that attracts and retains customers and stays ahead of the competition. Marketers and contractors should take advantage of CVOs to get unbeatable deals. It is impossible to compete with companies that charge CVOs. The CVO process is all about building a marketing funnel that allows you to spend more than your competitors to attract customers.
Customer Value Optimization Levels:
Customer Value Optimization consists of 7 steps to persuade customers to buy. Let’s get to the heart of the matter…
Determine product and target market
Perhaps the first and most important step in optimizing customer value is to determine if the product is appropriate for the target audience. One of the ways is utilizing efficient product management tools to gather data and insights for informed decision-making. You can do this by solving customer problems. Determine the condition first before you buy the product. They are frustrated or dissatisfied for a number of reasons. They are looking for solutions to their problems. Your product is the solution. This can put customers in a so-called after state. In this state, the customer is happy and satisfied. Once you know how to properly change their before and after condition, you need to price it. The bigger the problem, the more they are willing to pay. Once you have verified that the product is right for the market and the price is set, it is time to move on to the next step. Partnering with the right complementary business partner can augment the solution you can offer to your customer. Learn more at www.workspan.com/guide-to-partner-relationship-management-prm/.
Definition of traffic source and platform
To attract traffic to your website, you need to determine the value of that traffic. It shows how you interact and communicate with your customers. The source of traffic for your business can be social media platforms, blogs, email campaigns, advertising or organic searches. However you are trying to attract customers, focus on budget and traffic your most important goals: Get traffic for your CVO funnel. If you decide to use a traffic source, make sure you have sufficient resources to monitor the data and find out what is working well and what is not. For example, you may be willing to buy LinkedIn likes but without tracking, it will be difficult to determine the right market for your product. Without tracking, it will be difficult to determine the right market for your product.
Lead magnet power supply
This level increases the number of customers and prospects. The lead magnet offers valuable information in exchange for contact information. This is the first transaction between you and your customers. A lead magnet is usually offered on the landing page. This landing page is optimized to convert traffic into results. For your lead magnet to be effective, it doesn’t have to be flashy, complicated or long. Your lead magnet must solve the problem. Offering a free trial, free shipping, or a discount on the first purchase can generate quality leads. It doesn’t matter what kind of company you work for. The only important thing is that your lead magnet must address a specific problem.
OfferTripwire
The next step in the CVO process is to convert these leads into customers. For this, you need Tripwire. In contrast to Lead Magnet, Tripwire is also expanding its client base. Tripwire is the first money exchange between your company and the customer. The goal is to get someone to spend even a small amount of money by making a purchase that will make them a regular customer. To make your thread convincing, offer the product at cost or sometimes at a loss. Even if you don’t make a direct profit with Tripwire, it’s the most important addition to your business.
Main product range
This is your most important detail. A basic offer is made when customers come to you for a specific product or service. The most important action is to prove that your product or service is worth the investment. Companies are increasingly adopting a product-led growth model and need specific business tools to track their customer base; click here to learn more.
Profit maximisation
A product that fits well into your core offering is your profit maximizer. It is the upsell or cross-sell that is used to maximize the value of the business. Every offer after the first sale is profit maximization. For example, if you sell cell phones, your profit maximizers will be cell phone cases or headphones. These are the items that customers want to buy and that go with your main product. It may also include subscriptions that are usually purchased together. Profit Maximizers yield will be much higher than Tripwire and the basic offering.
Creating a return path
The final step in optimizing customer value is customer feedback. The return channel includes loyalty programs, exit offers, content marketing, email marketing or retargeting. The goal is to get customers to come back into the CVO funnel and purchase a Tripwire or other offer. Once you have obtained their contact information during the lead magnetization phase, you can continue to reach out to them online. With Return Path you can increase the number of transactions per customer. Return Path works for businesses and will help you grow and measure your business.
Extra step: Turn your customers into raving fans
There is no such thing as customers who love your business. If they fall in love with your product and services, they will surely tell their friends. You become the marketing specialist of your company. These crazy fans will bring you more traffic and business. And for this, the customer value optimization model is the best way.
Concluding remarks
Optimizing customer value is a never-ending process for many companies. This is a much better approach than increasing advertising costs. More traffic does not mean more trade. The customer value optimization method will not give you immediate growth. Focus on the things you’re not good at. With the right tools and the right people, you can shed light on your company’s qualitative and quantitative data.
Bio of the author
Gaurav Jain is the co-founder of MageComp and a certified Adobe-Magento Commerce Business Practitioner. As a computer technician with extensive marketing knowledge, he handles all types of customer requests, and his fun, responsive personality makes the customer’s day enjoyable.
Interesting articles on this topic: How to use personalization to improve the customer experience in 2021.The world is full of self-professed sales marketers, and you are no exception. When you go to conferences, you see people selling “sales funnel” after “sales funnel”. Sales funnels are a fancy way of saying “path to make more sales”. They have been around since the early days of marketing, but some say they don’t work. Your sales funnel is supposed to drive customers through a series of interactions that ultimately result in a sale.. Read more about value optimization meaning and let us know what you think.
Frequently Asked Questions
How do you optimize customer value?
The term ‘Customer Value’ is sometimes used loosely, but the fundamentals of customer value are quite simple: (1) to understand, (2) to satisfy and (3) to retain (4) to do so forever. The secret to customer value optimization is to identify, segment and serve customers in the most profitable way possible. By now you’re probably familiar with the concept of Customer Value Optimization (CVO). In short, it is the process of uncovering your customers’ true hidden needs and turning them into the primary focus of your business. There is no question that companies that gain a better understanding of their customers are more likely to succeed, and companies that can’t do this are likely to struggle.
How can new customers increase sales?
As a sales manager, you are constantly trying to increase sales. This is the reason why selling skills are one of the most common skills being taught in sales schools. You’ve done all the right things to guarantee your customers a great experience (like having a great site, offering great products, making a flashy and easily accessible storefront, and so on). However, while everything on the surface looks good, you’re probably missing large chunks of your potential customers.
How can service sales be improved?
A healthy sales growth is a great sales growth, a very healthy sales growth. Sales increases are all good, as long as they’re real. If you’re motivated to increase revenue, then you’re motivated to increase expenses enough to reach your target. In other words, your goal should be to increase revenues while keeping expenses flat or even decreasing. It’s all about maintaining a healthy balance between expenses and revenues. In the past several years, customers have become more and more inclined to complain and to take their business elsewhere if they feel they were treated unfairly or not given their due respect. They have also become more aware of how businesses make a living, and have become able to compare and contrast more easily different types of services. This, coupled with the growing dominance of the online retail industry, has led to the rise of online feedback sites such as Yelp , TripAdvisor and Brighthouse.
