Using Customer Value Optimization to Accelerate E-Commerce Growth

Clair Feng

When you think of the most successful e-commerce enterprises, you'll notice that they all have a few characteristics in common. Instead of seeking short-term revenues, top organizations frequently focus on the lifetime worth of their consumers. Their resultant accomplishment is always self-evident.

Customer value optimization is a process that offers you the framework to get all customer information and clarify business steps. Everything a business needs to gain sustainable growth is found in customer behavior data.

Therefore, customer value optimization helps e-commerce businesses analyze customer behavior and use the data to improve customer experience, acquisition, and retention.

In this article, I'll go over the actions you should take to achieve the best outcomes.

Monitor CLV and related KPIs

Customer lifetime value (CLV) is a vital part of customer value optimization because it affects every part of e-commerce businesses. Therefore, you need to monitor key performance indicators (KPIs) that influence CLV. They include:

  • RFM distribution: segment consumers in order to identify the most valuable ones and their requirements. This allows you to be more particular with your target while also generating more answers and increasing loyalty.
  • Customer experience: you’ll get this from product reviews, net promoter score, customer effort score, product return, and resolution rate.
  • Customer retention rate: this metric assists you in determining whether you're targeting the proper audience and providing what your customers want.
  • Customer stickiness: Your marketing campaign statistics can assist you in determining which campaigns brought you recurring customers and which brought you one-time sales. It is critical for any e-commerce company's consumer acquisition.

Conduct Qualitative Research

Qualitative research on RFM groups explains why some consumers are more valuable than others. It entails consumer interaction and surveys to determine why certain customers end up buying your products and services, while others do not.

You can incorporate the following into your investigation:

  • Demographics
  • Reasons for buying
  • Barriers to buying
  • Reasons for not returning
  • Net Promoter Score (NPS)

You can also incorporate bespoke questions based on your company's objectives. The qualitative data will provide information on what distinguishes distinct groups from others. Anomalies will also be discovered in the collected data. Most ecommerce platforms, such as Shoplazza or Wix, can generate reports to let you know better about your customers.

Define Ideal Customer Profile (ICP)

This can be accomplished by merging qualitative and quantitative data with purchasing trends. Consider the following when developing your ICP:

  • Who your customers are (age, gender, location)
  • What they buy
  • When they buy
  • Why do they keep coming back
  • What they need further

These factors provide potential areas for improvement, allowing you to focus on what is most important. Then you may examine your consumers' travels and interactions with your e-commerce company. You'll learn what works best and where you can improve.

Develop a Retention Strategy

With the facts from your research, you can now construct an ideal client journey after mapping out every touchpoint. This will assist you in creating a loop that boosts conversion and drives repeat orders. The following tactics could be beneficial:

  • Improving customer service;
  • Acquire more ideal customers;
  • Creating a better product range based on customer preferences;
  • Building excellent nurturing campaigns.

Keep Customer Value Optimization Continuous

Customer value optimization is a continuous process. It is better to continue to do more and more to keep your consumers coming back. When looking for long-term business growth, keep the following in mind:

  • Loyalty programs
  • Customer acquisition
  • Referral programs
  • Email orchestration
  • Tailored offerings
  • Personalized campaigns


Increased traffic does not ensure long-term business growth. Customer value optimization is one of the most important tools that any e-commerce company should have in its arsenal. It is good since it incorporates all aspects of marketing and successfully integrates them. I hope this article helps your business grow!

(Contributed by Ayotomiwa Omotosho; Co-author: Clair Feng, Ethan Tang)

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