Sometimes, acquiring customers feels like pouring water into a leaky bucket – too much effort, no real gain.
Ever feel like you keep spending a ton of money to acquire new customers, only to have them buy once and then never come back? Then this is for you!
In this episode, you’ll learn the top 5 reasons why a good Customer Retention strategy is vital for your business.
- (00:00) – Intro
- (00:26) – Reason 1 – You will have more resources
- (00:40) – Reason 2 – Ad Costs are surging, so customer acquisition is getting ever more expensive
- (01:08) – Reason 3 – Better Product Assortment
- (01:33) – Reason 4 – 3rd Party Cookies are dying but you need to know your customers
- (01:53) – Reason 5 – Access to Capital – better chances to score with investors and bankers
- (02:10) – How Customer Value Optimization(CVO) can help your business
- (02:35) – CVO Principles
- (03:25) – Introducing Omniconvert Reveal – the Customer Value Optimization Tool that helps you analyze and improve Customer Lifetime Value
You can find the transcript right here!
Today we’re going to talk about the main five reasons why you need to improve customer lifetime value.
You will have more resources
The more you will be able to generate from a single customer. the more budget you will afford to invest in talent and customer acquisition.
This will lead to sustainable growth.
The ad costs are surging
In the last five years, Facebook CPC grew eight times. After COVID, most companies will invest even more in ads to get their customers coming back to their stores.
If you know your ICP (Ideal Customer Profile), you will train the lookalike algorithms from Facebook or Google to acquire better customers, not average customers.
Better product assortment
Once you know who your ideal customer is, you’ll also be able to understand what the best and most toxic brands and products are.
That means your buying department will be aware of the brands and products they should add to your offer, because these are preferred by your loyal customers.
Third-party cookies are dying
In the future, you need to know your customers and have a direct connection with them. Personalization works only if it is relevant.
You will be able to give special treatment to your best customers and make them your promoters.
Access to capital
The bigger the customer value, the better the lifetime value over the customer acquisition cost ratio is. This is a ratio that makes investors happy (if you want to sell) and bankers happy (if you want a loan).
If you are serious about eCommerce growth, then customer value optimization is what you need. CVO works because it is a scientific method that is not relying too much on chance or creativity, but on a proven methodology that is under the radar of the majority of eCommerce managers trapped in the acquisition game.
The principles behind CVO are all since the eCommerce itself.
- Adapt to the customer needs.
- Focus on customers that matter.
- Under-promise and over-deliver.
If you realize how harmful is to always rely on new customers, then maybe the time to improve customer value is right now!
But to improve customer value you need accurate data and the right tools.
In the last seven years, we had hundreds of eCommerce companies to convert more with Omniconvert Explore, our personalization software. Two years ago, we understood the power of customer value optimization. Personalization works only if it’s relevant to each individual.
That’s why we built a customer value optimization tool: Omniconvert Reveal. It is the ultimate tool that reveals the hidden gems in your customer data.
Want to track and optimize customer lifetime value and customer retention? Try Omniconvert Reveal!
It is completely FREE for Shopify! Find it in their app store.
If you’re on Magento or another eCommerce platform, get it from our website.
Improving customer lifetime value has never been easier!
Stay tuned for our next eCommerce Growth Tips video next week where we learn more about how to do Customer Value Optimization in 5 Steps!