15 tactics to increase Customer Lifetime Value in eCommerce

15 Tactics to Improve
Your Customer Lifetime Value

● Serial entrepreneur
● 20 years of experience in B2B & B2C
● Currently leading Omniconvert, a tech
company with 8 years of experience in
data-driven growth solutions for eCommerce
companies.
● Instructor at Customer Value Optimization
Academy
CEO & Founder at Omniconvert
Hi, I’m Valentin Radu

MY COMPANY
ME
Omniconvert Customer Value Optimization Academy, 2021

Before my epiphany
Optimize Google Ads
Website refactoring
New ad campaigns
Improve Customer Lifetime Value
114
1
2
3

After my epiphany
Improve Customer Lifetime Value
Website refactoring
New ad campaigns
Other stuff
114
1
2
3

After that exit, I created
Omniconvert.
The aim:
Help other eCommerce
Companies leverage their
existing data, to increase
conversion rate and
Customer Lifetime Value.

The low-hanging fruit The Big Fish
- Make a quick buck
- Small adjustments
- Ongoing iterations
- Level-up your game
- Transform the company
- Change the Org chart
- Improve the products
- Customer Journey
- Revolutionize the acquisition

Better for action-oriented people
Not too patient to go over the details
Willing to move fast
Not to radically turn the company in being customer-centric
Because revolution is hard.
The low-hanging fruit CVO Method
The low-hanging fruit Method

Find out where it hurts the most
Apply a prioritization method: low effort / high potential
Consistency in execution
What can you do to make it work?
The low-hanging fruit Method

#1
Tune the campaigns to the purchase cycles

How many of the customers have
placed 2+ orders in the
selected interval
The analyzed interval
ADBT = average days
between transactions

How the shop sends emails
The analyzed interval
How the customers buy
Email 1: Conﬁrmation
Email 2: Shipping details
Email 3: Upsell
Email 4: Thank-you
Email 5: Product Recommendation

#2
Acquire more Power Customers

RFM segmentation

academy.omniconvert.com

http://bit.ly/facebook-lookalike

https://web.reveal.omniconvert.com/demo01/list/customers?fro
m=2020-03-02&to=2021-03-02

#3
Focus on the right products

What they have
returned?
What are they willing
to recommend?
Product A
Product B
Product C
Product D
Product E
Share of revenue Net Promoter Score Return Rate
What have they
bought?
32% 55 5%
16% 63 2%
19% 33 24%
8% 81 0.5%
17% 31 27%
Product Optimization Framework

#4
Surprise & delight the New Passions

B.J. Fogg
The 3 Ways to change behavior:
1. Have an epiphany
2. Change the environment
3. Create tiny habits

Time to think!

#5
NPS adaptive treatment

http://bit.ly/NPS-Blueprint

#6
Concierge support for Power customers

Jay Z
Jim M
Louis A
Lady G
Salma H
Elvis P
1. Identify your customers early on

2. Trigger special treatment experiments
on your website for Power Customers
X
Hey!
I am Maya and I’d
love to help you out.
Let’s chat!

That is triggered only for
speciﬁc RFM segments
X
Hey! Welcome back,
Joanne!
I am Maya and I’d
love to help you out.
Let’s chat!

#7
Plant retention seeds on the thank-you page

Was this a good decision?
What if they don’t sent me the product?
When will I get it?
What if I want to return it?
What customers want to know
Thank-you for your order
Your order number is xyz
In case you need help, here’s how to
reach us
Upsell options
What the thank-you pages contain
almost all of

Buyer’s remorse
is the sense of regret after
having made a purchase.

Source: https://en.wikipedia.org/wiki/Buyer%27s_remorse

What customers want to know
Client testimonials
Estimated delivery time
Return policy
Product Reviews
Our points of difference
A creative shot of dopamine
Was this a good decision?
What if they don’t send me the product?
When will I get it?
What if I don’t like it/ is not good for me?

$59.99
your.email@gmail.com
March, 3, 2021, 5:31 PM

Top 3 things to achieve with your thank-you page:
1. Make the customers feel good about their purchase
2. Give them clarity over what’s next
3. Plant the seeds for the future orders
(invite them to your community, invite them to subscribe to
your cool newsletter, ask them more about their needs)

#8
Unboxing campaign

1. Under-promise, over-deliver principle
2. Package inserts are cost effective
3. You can personalize the inserts only for speciﬁc RFM segments
4. The cost of delivering the message has already been paid
5. You can do cross-sells that are highly relevant
6. Package inserts are a great way to get rid of products that don’t sell
7. Effective inserts increase CLV - and they do that on autopilot
7 reasons why you need to consider inserts

Cost
Usage
Low
High
1 2
3 4
Package inserts Decision Matrix
Bookmarks Watch
Wine Opener
Coasters
Wallet
T-shirts
Hats

#9
Re-engagement scenario

One
size
ﬁts all
Tailor-made
approach

IF THIS THEN THAT
Insert thank-you card in the package
Enroll in the concierge program
Send a surprise gift
Show the special beneﬁts they have
Trigger the reactivation Special offer
Remind them how grateful your team is
Trigger a survey about the CX
Email: we’re sorry for the hiccup discount
First order has been placed
The customer is part of New Passions
The 2nd order has been placed
An At risk customer is on the product page
31 days since the ﬁrst purchase
An Active customer is on the cart page
When a new order is being delivered
A score of <6 at the NPS

Zeigarnik Effect
People remember unﬁnished or interrupted tasks better than
completed tasks

#10
Optimize the minimum order value

p r i c e e l a s t i c i t y

Step 1:
Do the math
RFM will show
You what’s the
threshold to be
proﬁtable.
Step 2:
Run an A/B test
Split the trafﬁc
and propose a higher minimum
order value for new customers.
Step 3:
Analyze the impact
If the revenue per visitor is
too low vs the forecast returns,
go back to step 2 and tweak the
experiment.
Step 4:
Have a winning experiment?
Set the new minimum order
value as the default policy of
your store.

#11
Use Coupons to improve CLV

Source: http://www.valassis.com/landing-pages/coupon-intelligence-report-download
90% Of consumers
use coupons

Edge 1
● Higher purchase frequency
● Higher chances to re-engage customers
● Higher chances that customers get
acquainted to buy from you
Edge 2
● Lower perceived value
● Lower margin
● Customers can get used to get a
discount every time they buy

Loss aversion
Loss aversion refers to people's tendency to prefer avoiding losses to acquiring
equivalent gains: it is better to not lose $20 than to ﬁnd $20
Source: https://en.wikipedia.org/wiki/Loss_function

Amos
Tversky
Daniel
Kahneman
Humans are born irrational, and that has made
us better decision-makers

600 people infected with a deadly disease.
Treatment A: 400 deaths / Treatment B: 200 deaths
Each treatment was presented in a positive and negative frame.
For example, for treatment A:
● Positive frame: 200 people will be saved
● Negative frame: There is a ⅓ probability that 600 people will
be saved and a ⅔ probability that no people will be saved

72%
Conversion when
framed positively
22%
Conversion when
framed negatively
“200 lives will be saved”
“⅔ probability that no
people will be saved”

Framing Effect
Drawing different conclusions from the same information,
depending on how that information is presented.

Do you want 20% OFF or get $20?

After 4 months
since the ﬁrst
purchase, only 20%
of the customers
buy again

#13
Automated scenarios to improve
the customer journey

- Analyze all the touchpoints you currently have with the customers
- Get rid of the useless emails
- Instruct the customer on how to get the most value from your products
- Plant the seeds for next purchases
- Position your company
- Make sure you treat customer requests properly
- Prevent churn by being relevant according to the customers’ expectations

The moment when you buy ﬁrst time from a
shop, they drop the ball and don’t deliver
your goods as promised
The moment when you buy multiple products
from a store, and they trigger 3 emails +
conﬁrmation text messages for each of the
products they will deliver
The moment when you receive a damaged
package after waiting for 12 days to receive it
The moment when a shop dropped the ball
and you’re one of their loyal customers
You’re being chased by their
unstoppable ads to buy again
AND
They don’t bother asking you how
was your experience
They keep on telling they’re
working hard to solve the problem
for 10 days and you can’t escalate
to a superior
If you want to return the products,
their website is like a maze

CAPTURE REVEAL

#14
Build a CVO squad in your company

To change the customer behavior,
you must ﬁrst change the company behavior.
Nobody said that, but I did it and you better believe it

Step 1: The epiphany.

Step 2: The environment

Step 3: Tiny habits

#15 [my gift for you]
Use Omniconvert Reveal

1 2 3
Capture 1st
Party Data
Captures data about
the Customers, Orders
and Products.
RFM Segmentation &
Insights generation
Calculates RFM scores, segments
the customers, creates audiences.
Produces more than 50 key insights
(Retention rates, Margin, Customer
Lifetime Value, NPS, Cohort
analysis, etc.)
Generate actions and
automations to improve
CLV
Using the audiences from Reveal &
our integrations, automate different
processes from Acquisition to
Retention & Loyalty or even
Customer Experience.
Ads Tools
Run Custom Audience Ads for
Remarketing or lookalike audience
ads for new customer acquisition
based on the best RFM segments.
See How to link to Analytics.
See How to link to Facebook Ads.
Email Tools
Orchestrate personalized email
campaigns with different messages
for different segments.
See how to link with Klaviyo.
Customer Experience, CRO
and Personalization Tools
Run NPS surveys, or do website
personalization according to the
Customer Segments.
See How to link with Explore.
SMS Tools
Trigger SMS campaigns for various
customer segments and buying
habits.
See how tolink with SMSbump.
Reveal: Segmentation on steroids
We are continuously adding new integrations to our ecosystem.
Connect with me on LinkedIN
for a friendly treatment

http://bit.ly/free-CVO-course

valentin.radu@omniconvert.com
Thank You!
https://www.linkedin.com/in/valentinradu/

15 tactics to increase Customer Lifetime Value in eCommerce

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