On today’s episode, Kunle is joined by Will Laurenson, Founder of Customers Who Click – a Customer Value Optimisation consultancy and podcast. Will helps DTC brands optimise customer experience to convert customers that bring higher lifetime value.

Paid acquisition is a go-to strategy for most eCom and DTC brands. While this brings in new customers, they don’t always stick around to become repeat customers. When a customer buys purely based on incentives (discounts and rewards), their repeat purchase is also driven by those same incentives. This is not viable for the business.

Cracking the code of bagging customers who understand and value your brand is a key determinant of success. Boosting Lifetime Value (LTV) is becoming the top focus of businesses looking to build long term profitability. Today’s guest, Will believes that LTV is one of the three major pillars that drive customer value.

In this episode, Kunle and Will talk about building an entire business strategy with the goal of boosting customer value. You will get to hear about conversion rate optimisation, CX goals, retention strategies and the KPIs you should be tracking. This is a great episode for marketers and business owners!

Here is a summary of some of the most important points made,

• • Driving traffic and clicks is only part of the puzzle
  • Find customers that perceive the value of your brands and product
  • Innovate rewards schemes to be more than just points and discounts
  • Hotjar and Google Tag Manager are useful tools for insights on website visitors behaviour
  • Great CX starts with providing all the necessary information before purchase
  • Make a genuine attempt to connect with customers and get feedback, rather than just chasing reviews
  • LTV (RFM method) should be one of the KPIs you track

Covered Topics:

On today’s interview Kunle and Will discuss,

• Conversion Rate Optimisation
• Tools for insights on traffic
• Customer Experience
• Retention
• KPIs to tracking the 3 pillars
• Optimising LTV

Timestamp:

• 09:55 – Meet Will Laurenson
  • Background in DTC Startups
  • Transitioned from Marketing to Product & Customer service
  • Quit his job over a year ago to start consulting and podcasting!
• 13:50 – 1st Pillar of Customer Value Optimisation (CVO) –
  • Conversion Rate Optimisation
  • Conversion Rate Optimisation doesn’t just mean more sales
  • You want to boost AOV without increasing costs
  • Find customers that understand and genuinely want your products
  • Filter visitors basis behaviour to find the ideal customers and not just incentive buyers
  • Repeat Sales should never be lose making
• 17:45 – Tools for getting feedback on visitors behaviour:
  • Hotjar
  • Event tags in GTM
• 23:35 – Going beyond the 1st purchase:
  • Focus on brand value and product value
  • Innovate your reward schemes
• 30:35 – 2nd Pillar of CVO: Customer Experience
  • On-site and off-site experience are equally important
  • Starts with providing all the important information before purchase
  • Delivery experience and customer service
• 34:05 – 3rd Pillar of CVO: Retention
  • Email works well to communicate and engage
  • Focus on getting feedback rather than just seeking reviews
  • Segmentation and Personalisation is crucial
  • Creating intelligent and relevant recommendations
• 43:25 – KPIs to tracking the 3 pillars:
  • Conversion Rate/AOV
  • First Contact Resolution (FCR) rate
  • LTV (RFM Model)
• 45:45 – Optimising LTV
  • Segment your customers as per value
  • Set marginal and relevant improvement targets for each segment

Takeaways:

• Conversions driven by incentives result in lower LTV customers
• Repeat sales should never be loss-making
• Segmentation and Personalisation helps you win the retention game
• First Contact Resolution (FCR) rate is a crucial CX metric

Links & Resources

• Will’s Podcast
• Will on LinkedIn
• Hotjar
• Google Tag Manager

Tweetable Quotes:

“Improve conversion rate without reducing average order value and profitability.”

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