Here is a question for you: What is the fastest way to grow your business?
In the overwhelming tide of running your business, it’s easy to think you just need to work extra hard and sell, sell, SELL!
In reality, you could be doubling your profits with less effort with a system called customer value optimization.
Customer value optimization defined
Customer value optimization was created by Ryan Deiss, founder of DigitalMarketer.com.
Some form of his funnel model is used by 90 percent of the most successful online marketing companies today. It also happens to be the same model we use to double the sales of our clients.
Think of customer value optimization (CVO) in terms of walking into your local McDonald’s.
They have done the work so that when a customer enters their fast-food restaurant and orders a hamburger, the cashier will follow up with the following questions:
“Would you like fries and a drink with that?”
“Yes, please,” will be the reply most of the time.
In essence, CVO provides extra value to each purchase far beyond the main offering. The best part is that this system can be applied to any type of business.
The customer in the McDonald’s scenario was already in the restaurant. But you can apply this to your business—even if it’s online, you sell professional services, or you have a large warehouse!
All you have to do to optimize their experience is to offer bundled, related products with their order. The customer receives extra value (they are now enjoying a meal instead of just a burger), and just like that, you have just maximized your profits.
Customer value optimization puts your business on the path of guaranteeing that each of your clients receive all the products or services they need from you during a given transaction. If you hadn’t asked them if they wanted to be a part of something bigger, they would have gotten what they requested, yet the experience could have been better for them and you could have gotten more cash.
What are the results of the customer value optimization system?
This is simple math. If you are optimizing customer value, then your business should see an increase in profits. Your customers will, on average, open their wallets more per transaction and end up extra happy with what they just bought from you. Since the value they are receiving is far greater, they are more likely to become repeat customers.
In short, by implementing this system into your business, you should see:
- Increased customer spending per transaction
- Greater customer satisfaction and return business
- Higher customer counts over the long term
Co-founder of Humble Fox Media. He has helped many local businesses with their digital marketing needs for more than 4 years. In his off time, you can find him tasting some local beers around Gig Harbor, WA. Or searching for music from the 90’s at a vinyl record shop near you.