This is the PCC framework that fixed CLV problems for 50+ e-commerce brands
Product
Customer
Communication
In that exact order
Product Value Maximization
Goal is to maximize product value
- Product price tests
Running product price tests by working out a hypothesis looking at competition, other products and breakeven AOV.
- Product bundles
Create Product bundles to increase AOV. 3 bundles minimum for your bestseller. Go along with single problem bundles, price-saver, and gifting.
- Product discounting framework
That includes the right type of offers and discounts which we can offer to the client. Need to experiment multiple offers to finalize 3 evergreen offers.
- Product recommendations
Complete upsell cross sell recommendations along the customer journey. Both on website, email and sms. Use the bundles and offers from above.
- Product level conversion analysis
Look at return rate, conversion rate, and repeat rate at the product level. Remove 20% or more low-performing products from the collection.
Customer Value Maximization
Goal is to maximize value from customer
This does not include communication.
Look at each customer segment differently
Nonbuyer —> First-Time Buyer
First Time Buyer —> Repeat Buyer
Repeat Buyer —> Recurring Buyer
Lapsed Buyer
Need a strategy for each –
Nonbuyer —> First-Time Buyer
- Welcome offer & pop up
- Landing page conversion rate
- Brand USPs/Policies and community
- Collect Zero Party Data
First Time Buyer —> Repeat Buyer
- Focus on getting user-generated content
- Cross-sell / up-sell recommendation
- Subscribe to save your subscription
- Share content around the usage of the first purchase
Repeat Buyer —> Recurring Buyer
- Paid membership program
- Loyalty program
- Referral program
- Community building
Lapsed Buyer
- Surveys
- Winback communication
- Paid marketing for retention
Communication Maximization
Goal to maximize communication
Engage across multiple channels –
Email
SMS
WhatsApp
On Site
Direct Mail
Push Notification
Don’t mix channel with customer strategy.
Centralize the strategy and then involve the channels.
Everything is not for everybody.
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