In the latest chapter, we were talking about part 2 of the CVO methodology, where we presented steps 3-6:
- Step 3. Carry out qualitative research for each RFM group
- Step 4. Find customer anomalies
- Step 5. Find your ICP by doing RFM segmentation and analysis
- Step 6. Optimize Customer Journey Mapping
Let’s continue with part three and the last one from the CVO methodology.
Step 7. Developing the retention strategy
Once you manage to map all the touchpoints and characteristics, it’s time to create the customer journey to-be, as you want to happen.
By applying the ideal customer findings across the entire journey, you then create an infinite loop that – almost on autopilot – drives conversions and supports repeat orders.
The best tactics to implement include:
- Building better nurturing campaigns (email, ads, SMS, website personalization)
- Acquiring more customers like the ICP (custom and lookalike audiences)
- Creating a better product assortment
- Providing better Customer service for the best customers
In the first phase, your potential customer discovers their needs or runs into an ad that makes them realize that they have a need. Your purpose is to target those lookalike audiences of your ICP and market the needs your product can cover.
The research phase determines the creation of choice-reduction campaigns, positioning campaigns and re-engaging campaigns. The preferred channels to be used are similar to the ones you use in the need phase, but you can now add email marketing, forums or comparison platforms.
In the third phase (Select product), you should be prepared to generate back in stock campaigns, browse recovery campaigns, promotions and lapsed purchases, all through the same channels as before.
The purchase phase presents new horizons to check – the order status, the Thank You page and NPS insights – and to prepare cart abandonment campaigns. In this situation, the marketing, fulfillment and customer service departments should join forces and implement these activities over email, SMS, phone and ads.
The fifth phase (Receive) is all about customer satisfaction. The channels to be used for marketing activities are email, SMS and phone, to make sure everything is in place and the customer’s needs and wants are met.
In the product use phase, upsell campaigns, together with review, educational materials and NPS campaigns are the proper methods to implement. Again, you can use email, SMS, phone and ads.
Customer retention is most evident in the seventh phase, which is the maintenance of your customers. Be sure to generate nurturing and service campaigns, reactivation and prevention campaigns and even birthday and anniversary campaigns. The marketing and customer service departments must work hand in hand to communicate with the customers via email, company website, social media and offline stores.
The last phase is the summit of your customer journey, where activities like referral campaigns can help you evaluate the interest of your customers and their willingness to spread the word about your products and brand. Email, website and social media are still the best channels to tackle in this situation.
Step 8. Ongoing optimization
At the end of a Customer Value Optimization journey and thorough analysis, constant improvement is the only thing that should be on a company’s mind, because CVO is an evergreen process on the road to reaching goals and milestones.
In short, the following points are the next steps to consider for long term growth:
- Loyalty programs
- Referral programs
- Customer acquisition
- Continuous cohort A/B testing
- Website experimentation
- Email orchestration
Step 9. Build ongoing personalization campaigns across all channels
Ongoing personalization keeps the customer engaged not only on the website, but in other mediums like social media, email, SMS, in search engines and other visited websites where they are targeted.
The more valuable the customer, the bigger efforts in making the experience unique. Make sure you remember the RFM groups to continuously segment your customers every time you are performing personalization.
For example, a valuable True Lover customer:
- receives access to a new range of products earlier than the rest
- is gifted with limited edition products catered to their taste
- is invited to special events
In general, ongoing personalization should include special treatments via email, ads, website, SMS, special product delivery, personalized offers with custom audiences, welcome screens and special customer support.
Ongoing personalization will allow for each individual customer to have a completely unique and personal experience on an eCommerce website, increasing the likelihood of them converting. The aim is to both make the experience unique and entice via offers built through the loyalty program.
Stay tuned for our next chapter where we’re posing a question and an answer to why you need Customer Value Optimization!