Customer Value Optimization
In this blog post we will be breaking down a business model system that every major corporation uses to corner their market. It works because it exploits every aspect of the law of business:
1. Increase the number of customers.
2. Increase the average transaction value per customer.
3. Increase the number of transactions per customer.
They call this system Customer Value Optimization or CVO.
Here are the steps:
1. Determine Product / Market Fit: Most of you have already done this. Find your market: i.e. WHO to sell your product to.
2. Choose a Traffic Source: In order to do this you need to understand how to measure what traffic is worth, and how to extract maximum immediate value from that traffic.
3. Offer a Lead Magnet: The lead magnet is an irresistible bribe that gives a specific chunk of value to a prospect in exchange for their contact information. What irresistible bribe could YOU offer in exchange for a prospect’s contact information?
4. Offer a Tripwire: The tripwire is an affordable offer, usually between $1 and $20. The goal of the Tripwire is to fundamentally change the relationship from prospect to customer.
5. Offer a Core Product: This is your flagship product or products. These offers often fall flat when presented to cold prospects, but can boom with the addition of the lead magnet and tripwire offer.
6. Offer a Profit Maximizer: This is where you make your real profit. McDonald’s sells their hamburgers (core product) for almost no profit, but makes their real money on the fries and coke upsell (profit maximizer). What could that be for you?
7. Create the Return Path: (Here’s where Epic can help the most) The goal of the return path is to have frequent strategic communication with your buyers now that you have their information. This could be e-mail marketing, content marketing, social media, retargeting, search or display, pretty much anything that will maintain your communication with customers and increase their transaction frequency.
Though some of these steps may seem obvious, put into conscious action as a system they will astonish you. Trust us, try even one of them and you’ll see results.