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After studying and closely monitoring all the tips and techniques of the best-performing online stores, it turned out that they rely on customer value optimization to increase their revenues.
It’s not just about acquiring the largest number of potential customers. You can increase revenues by identifying the most loyal and frequent shoppers and directing your efforts to them.
Quite confused?
That’s why we are here.
We will tell you all about customer value optimization and the strategies to accelerate your e-commerce performance.
So, roll up your sleeves!
Table Of Content
- What is Customer Value Optimization (CVO)?
- Best Strategies for CVO:
- Target The Right Audience
- Offer Optimal Customer Support
- Choose The Right Marketing Tool
- Highlight Your Best Selling Items
- Mention Product Details
- Incentivize Customers To Return
- Cross-sell And Up-sell
- Leverage Call To Action (CTA)
What is Customer Value Optimization (CVO)?
Customer value optimization (CVO) is a process in which online stores identify weaknesses in shoppers’ journey and work on enhancing such weaknesses to build customer loyalty and increase the overall value of customers.
Accordingly, e-commerce increases ROI by maximizing the value of existing customers.
Best Strategies for Customer Value Optimization CVO
As we realize the importance of customer value optimization, we will tell you 10 of the best strategies you should immediately start working on.
1- Target The Right Audience
So, let’s think about it. You are aiming to optimize customers’ value; hence, generic marketing efforts won’t be efficient.
Therefore, you have to identify the right audience that you should target, and to be honest, you should target the most profitable ones.
There are three types of customers:
- Low value:
- Low-value customers don’t buy that much from your store or purchase only during sales and discounts. At the same time, they consume much of your energy by complaining or returning products. Hence, they bring minimal profits.
- Medium value:
- They present the majority of buyers. They frequently purchase from your website but bring medium profits.
- High value
- These are your jackpot. The high-value customers are the most loyal ones who bring the highest profit to your e-commerce.
Accordingly, after going through the three types of customers, targeting the high-value ones is the key to increasing ROI. Thus, you should direct all your efforts towards improving their journey and to optimize their value.
2- Offer Optimal Customer Support
One of the best CVO strategies is offering optimal customer support. To improve customers’ journey and experience, you have to be present along the way to answer any inquiries.
Therefore, perfect customer support isn’t an option anymore. Your website has to offer live chat options and chatbots to respond to shoppers’ concerns immediately.
This will undoubtedly improve customers’ journey and will optimize customer value.
3- Choose The Right Marketing Tool
Right after you identify the right target audience, you will have to choose the right marketing tool that will appeal to your chosen audience.
You have to do some research to know the channels in which your high-value customers spend most of their time and, hence, choose the right marketing tool.
Simply, you have to choose the marketing tool that resonates with your chosen audience, particularly the high-value ones.
There are several options that you can choose from like email marketing, social media marketing, paid search results, etc.
But, we strongly believe in the importance of efficiency (High outcome with the least resources).
That’s why we are here to tell you to start integrating Convertedin into your e-commerce.
Convertedin is a marketing automation tool for e-commerce that aims to create personalized multi-channel marketing by offering multiple services.
First, it offers automated and personalized ad recommendations across multiple channels to accelerate your ROAS
Second, Convertedin effortlessly handles auto-segmentation to identify your right target audience without doing extensive analysis from your side.
Third, it builds email marketing campaigns for each activity to increase your ROI. We are sure that with Convertedin, you have all that it takes to optimize customer value.
4- Highlight Your Best Selling Items
This is a winning strategy that most of the top online stores utilize, which is highlighting their best-selling items.
You showcase the most sold items to build trust and express your concern for customers and their shopping experience.
Generally, the best-selling products are updated continuously. Thus, you assist customers in choosing the best products in your store. Hence, it's more likely that they place an order and even return in the future for additional purchases.
5- Mention Product Details
As we always say, online shopping needs extra effort from your side to deliver a satisfactory customer experience and journey. First things first, you have to get over the drawbacks of online shopping by clearly mentioning your product details.
Product details have to show how a product will be beneficial to shoppers and solve their problems rather than merely mentioning product specifications robotically.
By going through your website, customers will be familiar with all product specifications before making a purchase. Hence, there will be no place for surprises. Most importantly, this will build brand trust and encourage shoppers to place additional purchases and products of higher value.
It’s safe to say that such a simple strategy will undoubtedly contribute to customer value optimization.
6- Incentivize Customers To Return
One main, simple yet tricky CVO strategy is incentivizing customers to return for additional purchases.
Incentivizing customers to return can be done in several ways. You have to ensure that you stay in touch with them right after they place an order. This will put you on top of their minds whenever they think of purchasing in the future.
You can start with a simple email or push notifications encouraging shoppers to return to your store. Also, you can offer coupons and discounts, which will never let you down.
You can go as far as creating loyalty programs that will make customers constantly engaged and most likely to return.
7- Cross-sell And Up-sell
Through cross-selling, which is purchasing additional relevant products, and up-selling, convincing customers with an upgraded option, you are providing customers with complementary products that maximize profit and increase customer value.
Such a strategy is beneficial in several ways. It increases sales, revenues, and transaction value. Customers get exposed to higher-value products. In addition, it enhances customer journey which is one of the main factors in customer value optimization.
8- Leverage Call To Action (CTA)
Customers visiting your website might be skeptical about placing an order. These doubts stand in the way of customer value optimization. Therefore, you have to do whatever it takes to get over such an issue.
The basic customer value optimization strategy you should work on is leveraging a clear call to action (CTA).
In addition to using the basic CTAs like buy now or add to cart, you must take it to the next level by incorporating FOMO marketing.
FOMO marketing stresses the aspect of missing out on lots of benefits if customers don’t instantly place an order.
Accordingly, highlighting scarcity along with urgency by using messages like “only a few left”, “ X number of people viewing this product”, and “limited time offer” are all highly effective terms that encourage customers to purchase.
By using such a CVO strategy, you are reducing bounce rates and cart abandonment rates. Also, using a clear CTA and FOMO marketing will resonate with high-value customers which will eventually optimize customer value.
Final Thoughts
Now is the time to leverage customer value optimization strategies to revolutionize the performance of your e-commerce.
It has been shown that the previously mentioned strategies were one of the primary causes behind the success of e-commerce tycoons.
But, we strongly believe in the importance of efficiency (High outcome with the least resources).
That’s why we are here to tell you to start integrating Convertedin into your e-commerce.
Convertedin is a marketing automation tool that will
- Offer automated and personalized ad recommendations across multiple channels
- Conduct auto-segmentation
- Handle email-marketing
- Offer a powerful product recommendation engine based on customers’ purchase history
We are sure that with Convertedin, you have all that it takes to optimize customer value.
So, book your demo now!
Discover the secrets of customer value optimization and unlock the potential of your e-commerce business with these eight powerful CVO strategies.
Everything you need to know about customer value optimization and eight CVO strategies to accelerate the performance of your e-commerce.
