Review: Customer Value Optimisation. From unintentional to predicable.
Customer value optimisation is a simple and effective process to maximizes the value of your customer. Most sales funnels, focus content around themselves (the company) and the product. This course teaches you this is always the best strategy.
A sales funnel content should focus on resolving customer specifics needs. This content provides real, sustainable value and answers tough questions.
The process of customer value optimisation:
Defining your customer persona and crafting your message.
Attracting your buyers through the right traffic source.
Creating an ethical bribe (content marketing).
Using ‘tripwires’ to turn prospects to buyers. (Even if it's $1)
Sell your core product or service offering
Maximizing profits by upselling, cross-sell and retention.
Create an ongoing positive customer conversation.
What is Customer Value Optimization
Customer Value Optimization known as (CVO) is the process of creating a sales funnel. It enables you to outspend your competition to acquire and keep customers. The aim is simple and clear. Increase the number of transactions per customer and value of a customer.
What is the customer value optimization model?
CXL course for CVO has 5 lectures on the course
Identify market fit
Convert a lead into a buyer
Turn a buyer into a multiple product purchaser
Retention and return path
1. Determine market fit
How do you solve a problem your main persona is facing, in the value statement or unique value proposition (UVP). It is crucial you know from the beginning, who we’re helping and what they need from us. You can set objectives and measure metrics the success through each step of the sales funnel.
2 Create a lead magnet
One of the most important aspects to the funnel especially in B2B, where building a relationship is so important. This is the start of turning invisible people into becoming prospects. A lead magnet must be:
Quickly and easily actionable
High perceived value
High actual value
Easy to consume
At this stage, that person may not know too much about your company, brand. Therefore, they will make a quick calculation of value vs effort (System 1 for you Daniel Kahneman fans). So don't ask them for too much, if at all anything at this point.
Types of lead magnets:
I haven't included newsletter opt-ins and for good reason. You are asking for their information, along with nobody wants more emails. A lead magnet needs to be a gift from you that provides instant value.
Great lead generating content for B2B:
o Industry Analysis
o Teaser Content
o Earned media wins
o Third-Party Content
o Customer Testimonials
o Long-form Whitepapers
Common mistakes in B2B lead generation:
o Lexical communication
o Not focusing on the customer (using ‘we’ or ‘our’ too often)
o Treating the audience like B2C
o Using the wrong type of content for your persona
A tripwire is an offer they can't refuse. This is one of the hardest phases, as you are trying to change the relationship from prospect to buyers, even if it's a small amount.
The challenge is to reduce acquisition costs whilst trying to convert them to buyers. Ultimately, you might lose money on tripwires, if you break even then you are doing a stellar job.
This is a clever and intricate process. Getting a prospect to buy, no matter how small the amount fundamentally changes the relationship with you and the prospect. They have done business with you. They will trust you and the business more, understand you are legitimate and a good company to buy from.
A strong tripwire:
- Splinted off the core offering
- Is an irresistible no-brainer
- Offsets acquisition costs
- Does not necessarily make money
Examples of tripwires:
- Discount off a subsidiary product or service
- E-Books or Physical books
Step 4: Incorporating profit maximisers
A slack adjuster is a high-ticket item intended to appeal to a small percentage of customers in order to increase profit potential.
This works on the 80/20 rule, whereby 80% of the revenue comes from 20% of the paying customers. The idea is to focus on the big spenders to ensure annual profits are reached.
- 80% customers are representing 20% of the revenue
- In that 20% you have an opportunity for the slack adjuster
Step 5: The return path
A step often missed by many companies. This works best for e-commerce but can be applied to everything.
It’s where the longer-term strategy comes in. Typically this can be a remarketing campaign through Search & Social Media where you can upsell and cross-sell different products.
Tactics can include:
Automated emails to customers who have just purchased offering similar products they might like
Exit popups offering complementary products on form completion
Remarketing to existing customers with other options of products
This process may seem simple, but there are often steps companies, miss. Usually, the funnel starts with 'buy the most expensive shiny thing' from cold to hot. The CVO process allows you to capture quality, nurture and make more money repeatedly.