Customer value optimization (CVO) is what your organization does to offer specific value to customers and how your organization does so in the most efficient way. Your business likely offers solutions. How well does your business solve problems? What makes you better than your competitors?
Customer value optimization helps your organization align its “solution” with the “problem” and provide the most value for customers.
Essentially, customer value optimization entails maximizing the total customer value of your organization. Customer value optimization gives every customer the optimal value and experience from engaging with your organization.
Customer value optimization involves the following steps:
- Determine Your Product and Target Market
- Determine Your Traffic Sources and Platforms
- Offer a Lead Magnet
- Offer a Tripwire
- Offer Your Core Product
- Maximize Your Profit
- Create a Return Path
Increasing the value of your customer will increase the amount of money they’re willing to spend on your product or service.