Just recently, I earned my Customer Value Optimization Specialist Certification from DigitalMarketer! Wahoo! If you don’t know what that is, let me tell how big of a deal that is.
A Certified Customer Value Optimization Specialist (CCVOS) is someone who has advanced knowledge and skill on the subject of conversion funnel. A CCVOS is an expert in all matters related to Customer Value Optimization (CVO). A Certified CVO Specialist has the expert capability to design a conversion funnel that gives businesses exactly what they want – that is to get more customers and ultimately more profit.
Just about every business out there wants the following: get MORE customers (and not just any customers but VALUABLE customers) and spend LESS in acquiring them. In other words, get the most return out of the minimum investment possible.
If you are a business owner, you surely have a marketing strategy to acquire more customers and thus generate sales (this is called conversion funnel). I have a question for you though. Have you had the chance to have a closer look recently at how your marketing efforts are working out for you? If you have a profitable business, then congratulations! Keep up the good work. But if you feel that your business growth has plateaued or worse, is in a downward trend, then you need to pay attention. It is possible that your conversion funnel needs an overhaul to make sure that it’s fully optimized.
This is where a Certified CVO Specialist might come in handy. A CCVOS has conversion funnel down to science. And since we are on the topic, let me break down the process for you on how we can help you improve your conversion funnel.
What is Customer Value Optimization?
Before we dive in the process, let me just give a little introduction. It helps to understand what Customer Optimization is. Simply put, CVO is one strategy of growing a business by increasing the number of customers, increasing the value per customer, and increasing the number of transactions per customer. It is very important to note the one immutable law of business growth: “He (or she) who is able and willing to spend the most to acquire a customer – wins”. You can think of it as investing. The more you invest (spend to get customers), the higher the probability of returns (more sales and customers). And we can’t deny the fact that getting customers entails expenses, be it in time, money, or effort.
Determining the Product Market Fit
The very first step in the value optimization process is determining the product market fit. You have to know whether what you’re offering is something that your target market actually wants. Remember that there are all sorts of products and services available out there. You need to be able to ask the following: Who is your prospect? What is your primary product or service? You need to articulate your offer in a way that speaks to your market’s desired end result.
To illustrate, let’s say you own a real estate company. Think of who you want to sell land/properties to. Are you trying to sell/rent condominiums to young professionals? What do you think these young professionals want in terms of real estate? What do they envision? What is their “state” before buying your condo and after buying your condo. Let’s just say that before renting your condo, they are staying in a small, old, creaky flat with a roommate, in a location far from their place of work. That makes them miserable, tired from the long commute, have no privacy, no peace of mind, not free to do what they want because of living with someone else. And then let’s say they do rent/buy your condo. What would it do to them? Would they perhaps feel more relaxed, have more time to sleep because it’s near their place of work, they can have their privacy, they can arrange the condo according to their tastes, etc. I’m sure you get the idea. Basically, you need to be able to “hit home” or get an emotional response from your target market so that they would be more inclined to buy from you. If your product or service can elicit that from your target customers, then you’re off to a good start.
The Stages of Customer Value Optimization
The brilliant guys over at Digital Marketer (who awarded me my CCVOS credential by the way) have a pretty neat analogy for the process of CVO. An effective CVO growth plan works because it follows the structure and sequence of, drum roll please, a normal, healthy human relationships! Yes, specifically dating and marriage.
Optimizing a conversion funnel has 5 stages and each closely mirrors a healthy progression of human relationships. They are:
- Lead magnet
- Core Offer
- Profit Maximizer
- Return Path
Curious how each of the above relates to a the structure and sequence of a normal, healthy human relationship? Then see below:
- Optimizing a Lead magnet = “What’s your number?”
- Offering a Tripwire = “Want to get coffee?”
- Presenting your core offer = “Can I take you to dinner?”
- Maximizing Profit = “Will you marry me?”
- Architecting a Return Path = (Being Consistent in romancing your partner by giving flowers, date nights, etc).
Optimizing the Lead Magnet
A Lead Magnet is a small “chunk” of value that solves a specific problem for a specific market that is offered in exchange for an opt-in. In comparing to dating, it’s like asking for their numbers first. Only this time, what you want is their email address. Lead magnets make a specific promise, give a specific example, offer a specific shortcut, answer a specific question, and/or deliver a specific discount. If you haven’t already noticed, it’s all about specificity. Going back to the example of a real estate company, perhaps, you can offer a list of the 10 essential things that you should not be without if you are a new condo tenant or something like that. You can offer this list in your website in exchange for your target customer’s name, phone number, or email address.
Offering A Tripwire
A tripwire is a super cheap offer that exists for the sole reason of converting prospects into buyers. With the dating analogy, no longer only is your prospect just some person you’re interested (just giving them just meaningful looks and all), you’ve actually managed to invite them for coffee and they obliged! Tripwires allow your customers to invest their money and time on you and this get to know your company a little better. If you’re a real estate company, you can probably offer a paid webinar where you discuss the latest trends in real estate today.
Presenting Your Core Offer
Your core offer is what your business is all about. When you get to this stage, the relationship becomes more serious. When you’re able to take that special someone to dinner, the relationship becomes all the more intimate. For real estate companies, this is where you can sit down with a client and actually sell a house or lease that condo. Hopefully, because there’s so much value in your core offer, your client buys it.
Offering A Profit Maximizer
Now this is the most “intimate” stage of them all because you’re already offering marriage to that special someone aka customer. Profit Maximizers can be upsells (offering someone more of what they already bought), a cross-sell (offering them a related product or service) or subscriptions (offering them access to a club, community or association), or any other “backend” offer that increases immediate average customer value. Once you have a buyer, it makes sense to ask them to buy something else. For a real estate company for example, instead of them just leasing the condo, you could offer to have them actually buy it instead. Or maybe instead of a one-year lease, you could offer a two-year lease. Heck, you can also offer housekeeping services too from an affiliate company, of course for an added cost. Profit maximizers are not necessarily your own product/or service.
Architecting A Return Path
This is the last stage in the customer value optimization. At this stage, your customers have either bought from you, declined, or are still undecided so they have not bought from you yet. So the key thing here is following them up. Let’s say the client bought that condo from you. This should not mean that you will stop communicating with them. It is a matter of great importance that you should! Continually make your presence felt. Just like in marriage, you never stop romancing your partner. You keep the communication lines open. You can call them or email them or visit them maybe. For a real estate company, who knows, they might just buy another property from your or extend their lease, or refer people to you just because they can feel that you continually show that you value them.
And that folks is how you add value to your customers. Customer value optimization can help your business reach great heights. It’s easy right? You just need to spend some time and effort to learn these which is great. But know what’s even better? You can make your life simple by just hiring a CCVOS to all these for you! Hence, it would be good business decision to have a CCVOS in your team.
Thanks for reading!