How to Build a Customer Optimisation Funnel freedomiseverything.com /2016/05/16/how-to-build-a-customer-optimisation-funnel/
A deep customer value optimisation funnel (CVO) can be the difference between a great business and a mediocre one. But what is a CVO funnel and how does it work? In this post I will cover the basics of how to build a customer value optimisation funnel for your business. You can think of marketing as the front end of your business. Your marketing is so crucial because it is what links you to your customer base and ultimately determines whether you get people in the door, onto your website etc, or not. Marketing is the lifeblood of any business and without a great marketing strategy you will never even have the option of selling to your customer. However once you have mastered your marketing (the front end) you must take care of the ‘back end’ of your business. The back end of your business consists of your customer value optimisation (CVO) funnel and your customer service. Today I will talk about the CVO funnel.
What is a customer value optimisation funnel? In short, a CVO funnel consists of all the products and services in your range. The reason it is called a funnel is because of the theoretical shape (see below). The idea is to get as many potential customers into the top of the funnel as possible, where the lower value products are. These customers, having witnessed the value you bring, can then opt to purchase increasingly expensive products (the thinner end of the funnel). The following diagram shows what a sales funnel might look like:
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Here’s how to build a customer optimisation funnel As you can see the top of the funnel is wide and the idea is to use your lead capture of squeeze pages to move potential customers into your funnel. This is done using a lead magnet. A lead magnet is an excellent opening offer (usually free but not necessarily) which attracts potential customers by giving value in exchange for their email address. Once the customer’s email address has been obtained, the potential customer is now a ‘lead’ and enters your CVO funnel. At this point it is crucial to continue providing value to the customer, by emailing additional information, posts, videos etc which show more of your service and how you can help them solve a need. Different leads opt to buy at different times. Some will buy immediately after the lead magnet, while others will need to be given more additional value before becoming a customer. Once the lead buys your first product (usually the first priced, most popular product), they have truly entered the CVO funnel. This is where many business people make mistakes because they only have one core product or service to offer and nothing else. This is why some businesses struggle despite having lots of customers, while others thrive. It is critical that you have a range of products or services to offer your customers. These additional products are called profit maximisers. It is true that keeping and selling to an existing customer is easier and cheaper than
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obtaining a new customer. If you have nothing more to offer once the customer buys your core product, you may have several problems: You may have a frustrated customer as they cannot find more of what they might want You have lost potential business and brand loyalty The customer goes elsewhere to get the higher level product or service they need To highlight this issue, lets take the example of online business coaching: Lead Magnet (free): Free ebook on how to get started in online business
Core Product (£29.99): Video series which explains the first steps to getting set up in online business So what now? As you can probably see from this example, there is the potential to have a very unhappy customer further down the line. The free ebook has attracted them, they have purchased the core product and probably had value from it – but there is no offer after that. What if they require a next step. Where do they turn once the video series is finished???? Lets look at how the funnel could look: Lead Magnet (free): Free ebook on how to get started in online business
Core Product (£29.99): Video series which explains the first steps to getting set up in online business Product 2 (profit maximiser – £50) Access to an online portal of tools, to help the customer get set up online Product 3 (profit maximiser 2 – £130) Weekly video calls to coach, motivate and mentor the client, or regular training seminars Product 4 (profit maximiser 3 – £400) Face to face consultancy and coaching meeting Product 5 (profit maximiser 4 – £1500 to £20,000) Personal mentorship As you can see, there is now a full suite of products available to the customer. These are just examples but you could have any range of products you liked which fit your product, service or market. Again, it is critical for a successful business to be able to offer more and more value to potential customers. Having one core product (or service) and then nothing behind it is not only bad for business, it is also bad customer service.
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Hopefully this has given you an idea of how to build a customer value optimisation funnel . The importance of having a range of products or services cannot be understated. The business system I use (which you can find out more about by clicking here) has a deep CVO funnel and that is what makes the business so successful. Good luck putting the CVO funnel into operation in your business
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