Why IS CVO important to your company's sales strategy?
Sales is the #1 function of every business because sales is oxygen for a business.
To maximize sales, you must implement this proven strategy in your business. The most successful businesses are built on the Customer Value Optimization strategy and have systems that align with this strategy.
Just like there are systems for efficiency, systems for finance, systems for tracking... there are systems for marketing and sales that allow businesses to attract people to their business, convert those people into leads, and maximize the sales received from those leads.
If you have the Customer Value Optimization strategy implemented in your business, you will maximize your company's ability to acquire leads and sales, effectively, consistently.
Customer Value Optimization, or CVO, is a sales and marketing strategy that fits today’s business economy perfectly.
When executed for a company's online marketing, it provides a significant and long-term impact. It moves potential customers from their first interaction with your business into a long-term relationship with your company, while promoting and facilitating the growth of your business.
- Increase the number of transactions
According to legendary marketer, Jay Abraham, There are only 3 ways to grow a business
Increase the number of customers
Increase the average revenue per transaction
The CVO Strategy
ALLOWS FOR GROWTH WITHIN ALL 3 WAYS!
So what is CVO?
It is simply a strategy that allows you to optimize your sales and marketing process for higher conversions, while offering your leads value so they become your customers.
It is a strategy that allows the lead, the customer, and you to all benefit at the same time.
Now you may be thinking, it sounds too good to be true. There must be a lot of work involved. There is no way to track leads that well.
But there is - here’s how it works.
Download your CVO Sales Process Map here
THE CVO PROCESS:
The Internet now gives people a much larger pool to pick from when it comes to spending their money. So how can you get those people to choose you, your business, and your offers?
The CVO Strategy follows these 7 steps to increase sales:
- 1. Determine your Market and Offer
- 2. Choose a Traffic Source
- 3. Provide a Lead Magnet Offer
- 4. Provide a Tripwire Offer
- 5. Provide a Core Offer
- 6. Provide Profit Maximizers
- 7. The Return Path
Each of the above steps applies to one of the three ways to grow your businesses that I mentioned above. Each step offers value to your leads and customers. Let’s take a closer look.
DETERMINE YOUR MARKET and Offer
You must know who you are targeting for your business and offer(s). Who is it that needs or wants your product?
What pain points are they dealing with that aligns with your offer(s)? But determining your audience doesn’t mean choosing from all the groups of people in the world that are interested in, maybe could use, or could be helped by your product.
This means figuring out the one person who needs your product - is it a male or a female? Does she or he have a family? Where does she or he work? What are his or her interests, fears, wants, needs? What is that person’s life like before your product? What is it like after?
It is invaluable to think through these questions when deep diving into your avatar and drilling down all the details of your avatar. When you put the time, energy, and focus into putting the work into coming up with a detailed, one person, avatar, you will have a breadth of marketing hooks that you can use in your copywriting.
Knowing your perfect customer will help you market directly to that person and will save you a lot of money in the long run since you can market much more effectively, reducing
Though this narrows the number of people you are marketing to, it increases the likelihood of your offer(s) and landing pages converting since it offers a very specific message to a specific person.
Altogether, this will contribute to one of the 3 laws of growing your business - Increase the Number of Customers.
CHOOSE A TRAFFIC SOURCE
These days, traffic is easy - you pay for it or your earn it. But there has to be some thought into what channel you are using, what you are spending (either time and/or money), and who you are targeting. This is where step one becomes important.
Where would your perfect customer be? Is she or he on Facebook, LinkedIn, Twitter, or just searching Google? Does your product or service fit with the purpose of that platform - for example, a course on learning Microsoft Excel for Business would be perfect for a LinkedIn Audience, but the sale of tennis rackets is better situated to Google Adwords or Facebook Ads.
Once you know where you will be targeting traffic and who it is you will be targeting, you will build your ads within that platform. Start with smaller budgets, tweaking the ads until you have high click rates and conversions to your first offer in your CVO process, usually a Lead Magnet. Then you can increase the budget and watch the leads come pouring in, leading to you Increasing the Number of Customers.
PROVIDE A LEAD MAGNET Offer
Once you have your leads that come to your website, your landing page, your social media page, or walk through the door into your store, now what? This is where many leads disappear. The 1st challenge is gaining that initial relationship. These people do not know you, your company, your product...
Think of it this way, if your most expensive item is the first thing they see, they will not be browsing for long. These new leads are “cold traffic”, meaning that they have no or very little relationship with you, and it is the job of your lead magnet to introduce your company to them.
The lead magnet gives the customer
Your lead magnet does many things. It establishes a relationship. It gives value. It perceives your company as credible and valuable. It gives you
PROVIDE A TRIPWIRE OFFER
Once you have the email of a lead, you must build a little more trust with that lead before ascending them to your an offer that really makes you profit. Your lead is still wary of this new relationship. That is where your Tripwire offer comes in.
This offer is a small purchase, something that relates to your main service or product but isn’t a big commitment - like a cup of coffee when you join a restaurant club. It is also a product that the purchaser feels is giving them high value for a low price. This can be achieved through a low price on an incredible offer or bonuses.
Most companies that use tripwires effectively do not make any profit on a Tripwire offer and use it as a self-liquidating offer to acquire customers. That's THE POINT of a tripwire offer. Once this purchase is made, you have a customer. The more customers that you have, the more money your business will make since customers are more likely to purchase again.
That's why Increasing the Number of Customers through a Tripwire offer is so valuable.
PROVIDE A CORE OFFER
Your core offer is your main offer, product, or service. It is the main offer that you started this sales funnel to sell. Your core offer is worth more in value than your Tripwire offer, therefore it costs more.
Your Tripwire offer should have been a relevant offer that leads to your Core Offer. The Core Offer should make "perfect sense" for your Tripwire Offer customers. In many cases, your Tripwire offer is even derived from your Core Offer.
With the price of this offer higher than what your customers have previously experienced, the sales page will have to work harder to convince them. Therefore, the copy used on the Sales Page (whether it's written or presented in a video format) needs to be much longer than what you had on your Tripwire Offer page.
Price dictates length when it comes to the message of a sales page. This is a rule to follow when thinking about how to frame and position your offers for your business.
With leads naturally ascending to this point and experiencing enormous value, both for free and for a small fee, your core offer has the potential to have high conversion rates because you have created a step-by-step relationship with your prospects. As long as your lead magnet and Tripwire offers have provided significant and specific value for your customer, he or she will strongly consider your core offer since he or she trusts your brand.
This leads to your business Increasing the Average Revenue Per Transaction and The Number of Transactions.
Provide PROFIT MAXIMIZERS
A profit maximizer is an offer that follows your core offer. This is where the money is made!
These offers are more expensive than the core offer, but follow the theme of your sales funnel - meaning it is relevant and related to what the customer has already purchased from you. A profit maximizer offers MORE value and FASTER. Services that deliver your company's value faster and automatically are the best profit maximizers, such as done-for-you services.
These offers Increase the Number of Transactions and the Revenue per Transactions, and, most importantly, Lifetime Value Per Customer.
PRO TIP: When you can maximize Lifetime Value Per Customer compared to your competitors, you can afford to pay more for the lead than your competitors, leading you to dominating your market on advertising platforms where bidding places a central role in acquiring more advertisement space.
This is the process of getting leads and customers to go back to your offer(s). This is also known as remarketing. Remarketing can be done with exit offers, loyalty programs, new offers, down sells, email or text sms messages, or ads.
This happens through the information you have gained from the last 6 steps. On every page, at every step, you set up goals and conversions through programs like Google Analytics, Google Tag Manager, or InfusionSoft so you can see how your leads are acting and reacting to your offers.
This gives you the opportunity to follow up with leads and customers so you can return people back to your offers, maximizing conversions throughout your sales funnel, and Increasing Your Sales Revenue overall.
Once the CVO strategy is implemented with the above steps, you now have an invaluable sales funnel offering the right offer to the right audience and at the right time. When your funnel step conversions are optimized, you can now put more money into buying more traffic and advertising space leading you to scaling your lead and sale generation since your business is maximizing Return on Adspend (ROAS for short).
The biggest win is that when you are providing the right amount of value to your audience at the right time throughout your relationship with your audience, this leads to an invaluable relationship with your audience that produces benefits in many ways.
SO WHY IS CVO PART OF OUR COMPANY NAME?
At CVO Acceleration, we strive to provide value to every customer through helping them strategize, implement, and optimize this critical sales funnel strategy that every business needs to maximize growth.
Our specialization in the CVO strategy has the opportunity to bring you significant ROI in as little as 60 days. This is a value we practice at CVO Acceleration, to bring 2 times ROI to every customer that does business with us.
To us the Customer Value Optimization strategy applies not only to what we do for our clients so they can give value to their customers and grow their business, but it also applies to what we give to our clients - value!
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About Josh Marsden
Josh Marsden is a charter member of the Digital Marketer Certified Partner program, an Infusionsoft Certified Partner, and a MBA graduate. He is also the owner of CVO Acceleration Online Sales Funnels, a subsidiary of The Business Acceleration Group LLC. Josh loves leading his team and helping his company's customers get more leads, sales, and revenue using online sales funnels. When he isn't busy helping companies grow, he is either spending valuable time with his son, Benjamin, diving into business or marketing books, playing tabletop war games, or tackling a new physical challenge (like Tough Mudder or a Marathon).