Marketing expert Jay Abraham, there are only 3 ways to grow a business:
- Grow the number of new users
- Rise in average transaction value
- Increase in the number of transactions
These days, customers own the switches to all media/mediums. They can switch the brands every second. Also, they are knowledgeable about various products and services. Adding to this, users have limited attention spans due to increasing clutter.
Most marketers have realized that traditional methods of marketing simply don’t work anymore. Everyone is seeking, investing and mastering new marketing methods and tools that go beyond making their brands merely visible to ones that allow better consumer understanding and loyalty. For the progressive marketer, the real challenge begins from this stage.
Customer value maximization (CVM) is a real-time service model. It ventures beyond basic the customer relationship management (CRM) principles. A well-devised CVM process helps companies offer the right things to the right people at the right time.
Creatively, technology, media and processes alongwith robust metric systems are helpful to maximize returns suiting the investments.
It is a more systematic approach to sell products/services. CVM is known as a sales funnel. Yet, it is used to provide maximum value to the customers by solving their problems first. When we’re able to do that, sales will naturally and inevitably follow.
There are 6 stages in Customer Value Maximization (CVM), namely:
It is a pricing strategy by which a product or service (typically a digital offering or application such as software, media, games or web services) is provided free of charge, but money (premium) is charged for proprietary features, functionality, or virtual goods.
One should ask a small favour first, and then from there ask them for a bigger favor. To facilitate the sale even more, closely related the favour to your Freemium. Hence the word “slide” — to create a slippery slide path from Freemium to Slide.
Essence At this step, once people have taken up your Slide, you quickly offer them another closely related offer — your Essence. This should be more expensive and deliver more value than your Slide.
Right after the users have said yes to your previous offer (Essence), you offer them another one of your closely related offer. It is the Profit Booster
The new users who have seen your offer are not going to buy in the first attempt. Thus to make consistent sales day in and day out is to follow and build trustful relationships so that they buy your offers.
Here, one can continue to contact the leads and customers like always. The only difference is that now offer them closely related products that you have not previously offered before.
Tools like VComply helps the companies to evaluate various KPIs managers sets for themselves and their subordinates. The CVM framework can act like a KPI and evaluates current methods to makes changes where required. It sets up a measurement system that helps in evaluating effectiveness. The CVM framework operates as a continuous process in a closed loop which enables businesses to boost their ROI.Add to favorites