It’s me. Valentin Radu, straight in your inbox, from Bucharest, Romania.
My latest crazy idea? To run the company AND write a blogpost and send a newsletter to all you 23.421 subscribers every month.
My head-scratcher this week is about…
How companies are getting mature.
Of course, most of them are destined to die prematurely, but some are really getting the game and reinventing themselves. And I realized there’s a crucial moment in time: when the board is analyzing their past performance. That’s a struggling moment when good things can happen. For instance, they can shift their attention to Customer Lifetime Value.
Here’s how to see how mature your company is when it comes to CLV.
My bet is that most companies are still at the crawl phase. Few to none are already running or flying.
Are you into BF this year ? Here’s the map to free golden nuggets for you
I promise to come up with some tactical last-minute advice to nail your Black Friday this year. The good news? There are a LOT of cool experts sharing their knowledge about Black Friday/Cyber Monday: Best Practices for Ecommerce 2021.
The number you need to learn about this week is…
24.92% The chances to place the next order after the first one. That’s the current benchmark. As you can see, the habit forms as the customers are buying. But how it looks for your company in your industry? I’ll let you find it out by installing Reveal and checking our CLV benchmark.
What excites me about the future is…
That we’re already in beta with our most requested feature this year: the Audience Builder.
Want beta access?
Let me know by sending us a message.
Mind that it works only if you have audiences larger than 1k customers – according to Facebook rules.
They are the mighty 8
On our blog, we end a series that’s giving credit to 8 remarkable people that have built the foundation of what we call Customer Value Optimization, Customer-Centricity, and Customer Experience today.
Although the experts that shaped the Customer Value Optimization world come from various domains, they all have one thing in common: they are A-level thinkers that have helped eCommerce businesses generate better results based on proven methods.
From the CVO Academy: CRO will merge into CVO
Conversion Rate is a misleading metric.
And the CRO activities will become a part of CVO.
eCommerce companies can achieve a higher CR, but become less profitable, thanks to that.
That means the CRO agency is winning, while the company is losing.
The metric that emphasizes how good is the impact of the optimization program is Customer Lifetime Value.
CLV: CAC ratio is way more effective in aligning everyone around what is needed for everyone to win.
At the end of the day, any company is after a better CX and more profit.
That can’t be achieved by narrowing the focus of an optimization team only to the website.
You need to analyze the whole customer journey, fix what’s broken, and optimize what can be optimized.
See more in this video below!
The hidden gem for this week comes from…
He has a valid point of view regarding why slashing CAC isn’t everything:
“You might find that not all customer types have good retention. Optimizing for the right customer rather than any customer may increase your CAC, but your LTV will be higher. It’s likely that this will result in a shorter payback period.”
Check out his whole take on the 5 performance marketing truths.
And that’s a wrap, folks!
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