What is Customer Value Optimisation?

 In Business advice, Online marketing

Customer Value Optimisation (CVO) is a sales growth strategy used by Starbucks, Amazon and McDonald’s as well as many others. The strategy works to increase three things:

  1. The number of customers
  2. The average transaction value per customer
  3. The Number of transactions per customer

CVO sees customers as people with problems, and your business as providing the solutions to these problems.

Digital Marketer has made a helpful infographic to explain the steps to CVO.


Why determine your product fit?

In CVO, determining your product or market fit is about working out your customers. A business should not just give customers a product. The strategy enables a business to work out what their customers have and feel before receiving a product, what a normal day is like for them and how they see themselves or believe others see them (their status). CVO looks at working out how a product will change all of these things for the better.

Why does it? Working out all of these things prevents seeing the customer as someone that just wants to spend money. It unveils the feelings and needs of the market. Much more engaging offers can be made and people can become more invested in your product. Good marketing conveys the business as providing a solution to people’s problems.

Traffic Sources

 Choosing a traffic source is an important part of the strategy. It means picking the right medium to direct people to your content. This can be social networks, blogs, online banners and much more! Good places to start can be Facebook, Twitter, LinkedIn and Google. The traffic sources drive visitors towards you and into the rest of the strategy.

What is a lead magnet?


A lead magnet is probably the first real interaction you will have with potential customers. It is usually when the business exchanges a small piece of valuable information for the contact information of a prospect. This can look like ‘Put your email address here to download this exclusive article’. The lead magnet usually appears on the landing page of a website. The main purpose is to turn traffic on the website into leads.

What is a tripwire?


“Check out this cool product! Only £5 for a limited time only”

A tripwire takes people that were interested in the lead magnet and turns them into customers. It gives them something desirable that they are willing to pay for. Tripwires are usually a low price for something of worth (such as £10 for expensive software), or a higher number of goods than expected (such as four snack boxes for the price of one). Discounts and low prices make great tripwires. The main reason to do this is to turn leads into paying customers. It gives them a great deal they can’t refuse.

Core Product and Profit Maximizer

 The core product is the main selling point. It grabs attention and it gets people to buy. It is the meat instead of the potatoes. The phone, not the phone case. It gives people what they really want. It brings people from the tripwire and offers them what your business is all about. In the CVO, this is your main solution to their problems.

Profit maximizers are additions to the core product. They are the potatoes. They are the phone case. Where core products can provide very little profit for your company, profit maximizers bump this up. They can be the additional services like insurance, or the sides you buy at a restaurant.

The two are used together to draw in customers and provide them with more than they came for.

The Return Path

 The return path keeps up frequent communications with customers. Its purpose is to get people to come back for more. It can be done on social media or can take the form of loyalty programs.

The solution to their problems


 These steps allow you to understand the needs and feelings of your target market. They then use this to help your business grow.

We hope this helps you explain why CVO is a great strategy for growth. Thanks for reading.

Thanks to: Digital Marketer and NERD Marketing.

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