Understanding your customers and their emotions is the key to improving customer value. In this article, we will understand some key points like – what is customer value, why it is important, and what you can do to start improving your customer value after reading this blog.
What Is The Customer Value?
One-click, one purchase, one survey, one subscriber – that’s what it is – a customer. This is how you manage your products and organize your plans. However, not all customers are created equal when it comes to customer value.
Customer Value: The investment cost of attracting/retaining customers and the revenue return of their loyalty.
Customer pricing generally falls into 3 categories, but can be tailored to your company’s goals:
- Low profit: Customers bring low profit – don’t buy often, only buy cheap products, return products, etc.
- Average Profit: Average many – one-time or occasional customers, average spend, and rate of return.
- High value: good customer profile – repeat or high volume customers, satisfaction, and trust.
The goal is to convert as many low-level customers and buyers as possible into profitable customers. Read on to find out how.
Why Is Profit Optimization Important?
Customers are not created equal, but they are all important. By leveraging processes that maximize customer value, business models become more cost-effective, directing budgets in ways that produce the most value, while they deliver value that can be regenerated. To be successful, you need to accurately determine the value of each customer and give each customer the appropriate feedback. Take notes from the international B2B marketplace.
7 Steps Of CVO
1. Find The Right One
The first step is to adjust the product/market fit.
Find out what your market is and where your product fits – what problem does your customer have and how can your product be the solution?
Define your target market and product needs in detail, and from there understand what your customers want at each value level. In this way, you can improve your marketing to better meet their needs, especially for middle and high-end consumers.
If you want to go further, find out how your product is the best solution among all your competitors. When your product addresses the gap between your customers’ concerns and satisfaction, the more valuable your product is to them – this can be reflected in the price.
2. Road Plan
The second step is to narrow down the most effective traffic sources.
There are many traffic methods and platforms available, both paid and non-paid. Spreading efforts across multiple inefficient resources can be difficult to manage and measure, wasting time and resources. You must also check out the Chinese B2B platform in order to get an idea of what I am talking about.
Focus on the traffic sources that bring the most value. Your goal is to filter and engage with active potential customers and bring them to other CVO openings; have the right tools and metrics to measure traffic value.
Measuring value is important because your goal is to track traffic engagement and related data to understand what’s working and what’s not. With proper attention, the resources you put into your traffic sources (and each visitor or click) should ultimately provide a strong return on investment in the form of a high percentage of visitors.
When your traffic sources reach a point of continuous growth, you may find that your investment can be higher than the face value of your traffic because you have built a significant conversion stream.
3. Get In With Lead Magnets
You can think of Lead Magnets as a customer hook, where you offer a valuable product for free in exchange for contact information.
Lead magnets are placed on landing pages or landing pages to attract attention and ask for a name and email in return. By getting information from your customers, you open up direct marketing channels where you can follow up and engage further.
Lead magnets should be useful to customers and free. If they are useless, vague, or misleading, they will not be effective in persuading consumers to provide information and engage in meaningful exchange.
Ebooks, tutorials, guides, templates, and discounts are a magnet. Give your target market a variety of magnets of interest, and segment them by topic or genre. The specifics of lead magnets help increase conversion rates as their requests are highly relevant to the needs of your target audience.
4. Use Tripwire
Tripwire is a low-cost product designed to convert potential customers into paying customers.
This is the first financial transaction in the space, and your audience receives a valuable offer at an irresistible price, encouraging them to convert to a buyer, and attracting them to buy high-priced products.
Tripwire will be a good taste for your product or service at a low or low price – depending on your company, this can be a product, a book, the opening of a special offer, or an opportunity to try n ‘zero. The purpose of the agreement is not to make a profit, but to enable customers to overcome time constraints.
You can advertise your Tripwires on your website, but they are often used at the direct marketing level, where you get contact information before your Tripwire has a positive impact. This is also where your customer service and experience should start to shine, making communication a joy for your customers.
5. Prepare Key Points To Give
This is the main event where the main product comes out: the flagship product or service of your business.
Having been attracted and connected with lead magnets, overcoming obstacles, and satisfaction with Tripwire, your customers are ready to continue their relationship with the brand. If they are satisfied with the current service, quality, and value, customers will be more interested and willing to buy your high-value product.
You’re giving them your core product – clear advertising and effective marketing – what your art is most valuable to your customers, a strategy they should invest in and keep coming back to. Consumers are more likely to buy at this time after having many good deals and different experiences in the business compared to buying the main product through cold marketing.
Although this part can be useful, usually the main money is usually in the next step…
6. Provide A Profit Maximizer
Value Maximizers are complementary products that support and enhance your core products.
Want to use those french fries? Every purchase is a customer’s experience with a product, and the things or services that make up that experience are often where most businesses make money. These products are usually offered during or after the sale of the main product. By attracting profit maximizers who are valuable to your customers into your program, you can create an attractive environment.
Upsells, cross-sells, referrals, accessories, bundling, subscriptions, premium tiers, and memberships are all examples of profit maximization… Consider the saying that theaters get more profit by selling popcorn, not movie tickets.
7. Save The Way Back
When customers go through this customer value optimization process, their value increases. Step by step, they become valuable customers, buy high value, and return often. Ongoing relationships with customers are critical to maintaining high profitability.
Use a return path to gently guide customers to the beginning of the CVO funnel.
Encouraging customers to return is key to continuing the process of delivering value and generating profit. The return method restarts the process of winning time making it easier for them to buy them again. This strengthens your work through the process of the RFM model – increasing the frequency and financial value of interacting with your customers.
Loyalty programs, discounts, exit offers, personalized email marketing, advertising campaigns, social media, and other incentives are all ways to stay connected and engaged.