How to Build an Unstoppable Business?
The Secret to Customer Value Optimization
Some people might be contented already upon knowing different ways to advertise the business, such as SEO, Facebook ads, and the like. But learning the real secret to build an unstoppable business is mastering the so-called Customer Value Optimization.
First, what is Customer Value Optimization?
It is the system that the Digital Marketer introduced in making a successful business; not only for a short span of time, but for a long term period. This system tells that there are only three ways to grow a business:
- Increase the number of customer
- Increase the average transaction value per customer
- Increase the number of transactions per customer
Look at this flowchart and make this your guide in understanding CVO.
It might look as complicated as you might think, but upon understanding each step of this flowchart, this will help you master the digital marketing stuff.
Step 1: Determine Product/Market Fit
“Great marketing simply articulates the move from the Before state to the desired After state.”
You must always remember that for the product/sales to be effective, you must have this desired after state. There is contentment when your product/sale is delivered well to your customers. Always consider that the offer must be good and the way you sell your product is exceptional.
Step 2: Choose a Traffic Source
There is nothing to worry about this step. All you have to do is master one traffic source, then, move on to another. Study the different traffic source, one at a time.
Just always bear in mind that your goal for this step is get prospects into the CVO funnel. When we say prospects, these are people who are somehow interested in your business, but are not yet considered customers. They are only interested at the moment.
Step 3: Offer a Lead Magnet
What is a Lead Magnet?
It is describe as “an irresistible bribe” – meaning to say, to attract prospects to your business, you must give them something in return that they cannot say no from it. And what do you get in return? Their contact information. This is your first transaction to your prospects so be sure to provide good value to them.
A lead magnet is mostly incorporated with a landing/squeeze page.
I will show you my personal definition of a good landing page. Considering I don’t need digital assets software, but when I saw this landing page, it just suddenly caught my attention and I wanted to enter my information right away.
Why I liked this landing page? First of all, it is neat and looks very calm. Second, looking at the opt-in form on the side, you can see the icons that accompanied the information that you have to put in. It consists of bullet points describing the things you will be able to get/learn from the guide, and it has this adjective “complete” Well, specific kind of guide that you will get. On the bottom part of the landing page, you will see the different reviews of people who already downloaded the guide. So somehow, once people saw these reviews and relate to any of those, they will enter their information to feel/experience the same way. And lastly, I liked the Download Now button. It obviously complement the color of the opt-in, at the same time, it has an arrow icon which indicates that you will get the guide right away after putting in all the information on the fields.
This might not be the best for others, but I considered this one of my favorites.
Step 4: Offer a Tripwire
What is a tripwire?
Great definition that will fit the tripwire is an irresistible super low offer. Consider those adjectives. What I have learned here is the strategy that one must bear in mind in offering a tripwire. Don’t expect too much income/sales/profit here. You must always remember that you must first increase the number of customers, and you will be able to achieve that here.
Step 5: Offer a Core Product
This is now the time to offer you core product. It is meant to give you sales, but don’t expect too much from it. Better to used those sales that you acquired in investing to other strategies to get more customers. If it does not make any sales, do not worry about it. Because the next step will surely do that.
Step 6: Offer a Profit Maximizer
Remembering the second way to grow a business, increasing the average transaction value per customer, that is possible here in offering a profit maximizer. I won’t be explaining too much here. I’ll just discuss with you how McDonalds do it. And surely, you’ll get it too, right away.
Of course, everyone knows McDonalds and it’s core product is hamburger. But according to the article, the hamburger is not giving too much profit to the business. But what’s giving them more sales? The profit maximizer. Now, what are the profit maximizer of the hamburger? These are the upsells, including coke(softdrinks) and fries.
Looking at the illustration, the hamburger is being sold for $2.09. Your expenses for this hamburger is $1.91. So, doing the math, your earnings is just $0.18. Now, considering the upsells, you will be having a profit of $1.14. Getting the total, you will be earning $1.32 for that.
See now how much profit maximizer is doing the sales. Now, what are those other examples of product maximizer?
One good example too is Amazon. That frequently bought together section is the profit maximizer. Sometimes, one will spend more on the upsells rather than the core product.
Remember: any offer made after the initial offer, is called profit maximizer.
Step 7: Create a Return Path
The last way to grow a business is to increase the number of transactions per customer and you can successfully do that by creating a return path. Your goal here is have frequent transactions with your customers. In any way that you wanted, you can contact them already thru the information you got from the Lead Magnet. So anytime, you can offer them another lead magnet, tripwire, core product, and profit maximizer.