Customer Value Optimization is of utmost importance for any successful e-commerce marketing strategy. Consumers want companies to understand their expectations, and they want these companies to value them.
Brands have established themselves on online platforms by servicing their clients and valuing their demands or suggestions. Only when a consumer feels they are being taken care of do they feel motivated to market the services to their peers.
Customer Value Optimization is important as, with every visitor, your chance of acquiring business hinges on their interests. You have to value online visitors who can provide you with business to help your e-commerce venture flourish.
What is Customer Value Optimization?
Customer Value Optimization can be divided into two fragments. First, wherein you recognize your valuable customers, and second, to market and structure your services in accordance to their psyche. It can be termed as an investment wherein you spend your resources to maximize the value of your customers.
Now, these customers can be divided into; the good, the bad and a third category which falls somewhere in between.
'Good customers' are those who keep you in business. They order products, pay for it and keep your business alive. You need to take care of them and make sure they are not lured away by your rivals. 'How you do that?' is what we will talk later on in this article.
'Bad customers' just waste your resources and do not yield any return on your investment. They might be excited to order a product, but later you might receive their order for cancellation/return of order.
Now, the third group, who are neither bad nor good, keep checking out what you are offering but for one reason or other might not avail services. These are the ones that should make you work harder.
Use CVO for productivity
The core ideology of CVO is to channel your services towards your good customers. The three principles that you must follow to implement CVO is to:
- Employ tactics and strategies to get new 'good customers'
- Entice and approach 'bad customers' and others to convert them into 'good customers'
- Maximize the value of current 'good customers'
Ideal Approach to Implement CVO
1. Obtain Great Customers
For the success of your e-commerce business enterprise, you want to attract more and more of the online audience to your website and turn them into business. As mentioned above your want to acquire more of the 'good customers'.
Every website has different set of audiences. Their behaviors include their spending habits, the peak sale time and even the conversion rate. Before you can obtain 'good customers', it is essential to know your respective audience. With Google Analytics or an equivalent, evaluate the efficiency of their campaigns, advertising or how better it is to invest in remarketing ads. To track your search traffic with Google Analytics:
- Sign into Google analytics.
- Click on the 'edit' in the settings column of the desired website profile you are looking to modify.
- In the upper right corner of the 'main website profile information' section click on 'Edit'.
- Choose 'Do track Site search'.
- As the query parameter enter 'q' without quotation mark.
This will help you evaluate all the above-mentioned aspects and can help you strategize better for your good customers.
Things to keep in mind here will be that:
- Organic and fresh content helps attract more of good customers while paid advertisements at times might only lead to 'bad customers'.
- If you opt for specific keywords and blog posts which are relevant to your business you can attain more 'good customers'. Also, create site structure that follows the important SEO factors in order to remain search friendly.
To acquire more of 'good customers':
- Be part of channels, ad groups, blog posts that can give you “great customers”.
- Observe the common link between all of these channels and implement it in your business. It is always beneficial to invest in a high-profile campaign than to waste time in low-profile ones.
Turn prospect business into clients
Remember, earlier in the article, we talked about 'how to convert the bad customers' into good? Well, the answer to that is to find a trigger which can entice them into making the purchase.
After identifying these 'bad customers' who keep turning away, use Google Enhanced e-commerce report to acquire every bit of relevant details pertaining to your business. Herein you can also find shopping behavior analysis which can give further insight.
Once you find these customers, the next thing is to target them with smart marketing tactics. Make use of personalized e-mails to market services and mask it under catchy subject which can be anything that triggers them to make the purchase.
Enhance existing great customer value
The laws to follow for successful business enterprise for growth can be summed up as:
1. Number of customers should increase on a regular basis.
2. Work on increasing the average value per visitor (VPV).
3. The number of transactions per customer should also increase.
Law 2 and 3 can only be applied to the existing customers. As an e-commerce business owner you need to work on how to get your existing customer to pay more and how to encourage them buy more often.
To achieve your desired VPV for existing customers:
- Use up-selling and cross-selling tactics whereby you recommend and provide information of products which they can buy. Here, also, you have to keep a tab on their spending habits.
- Getting your existing customers to purchase more often can be a tedious task. You have to win them back. Use effective marketing campaigns such as use of personalized e-mails to remind them of the good time they had and how you can better their experience double fold.
Customer value optimization can lead to successful results. So, make sure to employ it in your plans and strategy. Rest assured your revenue will only grow once you implement it with success.