Unlocking the Power of Customer Value Optimization
May 2, 2023
In this episode, Adam Pearce from Blend Commerce explains the importance of Customer Value Optimization (CVO) for businesses to remain profitable. He discusses siloing and transparency within a business, understanding metrics such as margins and economics, taking baby steps when implementing CVO, using CVO to support marketing channels rather than replacing them, and focusing on customer service after customers have put their credit card details in. Hear his admiration for Huel and Midday Squares and learn how startups can get the right data into the hands of the right teams without relying on expensive enterprise level solutions.
This podcast conversation discussed the importance of Customer Value Optimization (CVO) for agencies. CVO is a more intense approach than traditional Customer Acquisition Cost (CAC) metrics and focuses on qualitative research pieces such as jobs to be done surveys and data analysis such as RFM segmentation. This helps to create stronger hypotheses and plans based on data, rather than just looking at conversion rate, average order value, and other immediate metrics.
The challenge for agencies now is getting people to understand why CVO is important and getting alignment in teams in order to achieve an overarching goal. This podcast conversation discussed the importance of breaking down silos between departments and agencies in order to create better customer experiences.
The challenge for agencies now is getting people to understand why CVO is important and getting alignment in teams in order to achieve an overarching goal. This podcast conversation discussed the importance of breaking down silos between departments and agencies in order to create better customer experiences.