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Customer Lifetime Value (CLV) PCC Value Maximization Framework (Product, Customer & Communication)

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.

Need your brand CLV strategy? Reach out to us.

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