3 solid CX strategies that extract maximum revenue from your most loyal customers
Whether we acknowledge it or not, economic health plays a role in the success of your business. Recent low consumer sentiment and the constant chirping about financial instability has left chief revenue officers asking some hard questions. We’ve been here before (housing collapse, Covid etc.) and our team of Customer Experience (CX) experts has a wealth of knowledge to share. Don’t get caught completely off guard by circumstances out of your control; focus on what you can control now to prepare for whatever comes next. More than ever, we’ve seen the need for strategies that consistently drive revenue before, during and after market variations.
In this piece, we review three solid Customer Experience (CX) strategies that seek to extract maximum revenue from your most loyal customers, drive long term revenue and maximize customer lifetime value (CLV).
CX Strategy #1: Identify behaviors of your most loyal customers
To get the most out of available resources and maximize revenue potential, generate a list of the go-to traits of your most loyal customers. It’s important to determine how your products or services impact your customers’ lives. After all, generating revenue is fundamentally tied to meeting their needs. The best way to do that is to learn what makes them tick and to strategically build it out.
Determine Customer Lifetime Value (CLTV)
- How much each customer will spend throughout their relationship with your brand is the key to who is the most loyal.
- Ideating with the goal of increasing CLTV at the audience level is going to yield more focused tactics.
Create personas to understand your top customers
- Understand your loyal audience demographics, what motivates them to purchase, and what product benefits mean the most to them.
- Personas allow you to gain profound insights into your target audience’s needs and preferences so you can apply them throughout your customer experience.
Map the customer life cycle
- Gather and clarify your brand’s specific touchpoints across the life cycle: Awareness, Consideration, Purchase, Retention, and Advocacy.
- Determine how your target audience segments move through these stages and ideate ways to drive them forward more effectively.
CX Strategy #2: Speak your customers' language
Once you identify your most loyal customer group, start speaking to them directly. A large part of good CX is providing an experience that meets your customers’ needs without overloading them with marketing speak and things they just don’t care about. Like we said before, meeting customer needs typically equates to increased revenues 👍!
Create content that targets what you learned about motivation & value, and speak to what resonates. As far as content goes, we often see the best of intentions get rather lost in translation. Balance your value proposition and content by following these 3 steps:
- Craft your value proposition and stay the course (your org must be bought in top to bottom) and make this resonate throughout your content.
- Prioritize your messaging. Some value points are more important than others. Keep trying (testing) until you get this right.
- Imagery should mimic your target audience’s motivation, this includes product usage or product based scenarios. Lean on the information you gathered about your audience as a guide.
CX Strategy #3: Iterate through testing
Once you have identified your most loyal customers and made assumptions about them, the logical next step is to validate your learnings through testing. Conversion Rate Optimization (CRO) is the process of learning what works best for your experience. Your website audience is the greatest market research tool available. Testing will allow you to both learn what is most effective and measure the impact to your bottom line.
For example, if audience research shows that your most loyal customers significantly value the quality of your products. Test incorporating content that speaks directly to product quality to cross sell or upgrade. Testing allows you to validate assumptions into revenue driving tactics. Continue testing and refining your experience to achieve peak value from your top audience segment. See how we used Experimentation to increase revenue per visit by 68% for Baby Tula!
Wrapping Up
Many businesses are caught completely off guard by unforeseen economic forces that can shape a quarter or even a whole year. More than ever, we see the need for strategies that consistently drive revenue before, during and after market variations. Before these events happen, it is vital to have a solid foundation and understanding of who your best customers are and a well articulated value proposition. Speak their language and validate research through testing.
During volatile times, resources are at a premium. Seek initiatives that maximize revenue by “juicing” or squeezing the most revenue out of identified top audience segments. After all, it’s more cost effective to convert existing customers than to acquire new ones.
At 85SIXTY, we do this everyday. If you’re interested in optimizing for your top audience segment(s) to drive revenue growth, we’d love to help you get started!
