By Bill Cunningham
November 14, 2022
Every day, potential customers come to us looking to upgrade their current tool. In most cases, the person tasked with this project is in the marketing department and is looking for a tool that helps them (and their bosses) achieve a short-term goal like increasing the cart conversion rate or average order size. But the reality is that limiting the goals of the tool selection also limits the growth of the business.
Let’s compare two customers visiting your site
For some context, imagine your website has two customers with the below associated revenue per visit (RPV).
- Customer A – $100 RPV
- Customer B – $26 RPV
Which customer would you rather have?
Marketing will jump all over Customer A because they want to make their monthly or quarterly numbers. But what if you knew the net present value of Customer B is 30% more revenue when considering the total future cash flows from each customer? Do you want $100 once from this visitor or $130 over the next 12 months? Now that’s something Finance, your CEO and Board would all want to know, isn’t it?
What do we learn from this?
This is the power of real customer loyalty. It’s the difference between the market giants and the rest of the pack. If you are tired of incremental gains in conversion and cart value, you need to have an eye for the long game. It’s hard needing to be able to justify complicated ROI to executives while also being mandated to drive 5x returns over incremental gains.
At SiteSpect, we empower your customer experience program with the tools and techniques to think beyond the limits of in-session conversion optimization.
It’s all about the long term
As Jeff Bezos laid out his strategic vision for Amazon in his 1997 letter to shareholders at the end of his first year as CEO, “It’s all about the long term.” Bezos recognized that to grow real market leadership, it was imperative for Amazon to attend to customer loyalty by helping its users to recognize value from their offerings.
If you would like to learn more about how you can improve customer value recognition this way, reach out to us today.
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