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#84 Valentin Radu from Omniconvert: How to Scale with CRO and Retention Marketing
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#84 Valentin Radu from Omniconvert: How to Scale with CRO and Retention Marketing
For our very first episode of 2022, we are delighted to welcome Valentin Radu to The Ecom Show. Valentin is the Founder and CEO of Omniconvert, a multi-faceted conversion rate optimization (CRO) platform built for data-driven growth.
When two CRO-obsessed retention marketers meet, we’re gonna learn a lot about scaling. 🚀 Tune in to hear Valentin and our CEO and podcast host, Daniel Budai discuss:
✔️ Valentin’s approach to CRO
✔️ What is blackhat CRO?
✔️ Why you shouldn’t spend everything on acquisition
✔️ How to increase customer lifetime value (CLV)
Valentin’s Approach to CRO
Valentin says that the overarching narrative on e-commerce growth is changing. Acquisition marketing used to be the main theme for decades, but now the focus has shifted to retention marketing.
“It’s okay to acquire customers, but what about the costs? What about the future revenue from them?”
Essentially, your growth is going to struggle if your acquisition costs are too high. Growth never happens with a single tweak. You need acquisition, you need conversion, and you need retention. All three pillars are important.
Omniconvert’s e-commerce growth focuses on conversion rate and retention rate. Their extensive use of website surveys and A/B testing allows e-commerce merchants to really get to know their site visitors and optimize accordingly.
Valentin and his colleagues at Omniconvert are strong believers in interactive content such as surveys.
“The most convenient and cheap way to understand what you should be changing on your website is to simply ask your customers.”
What is blackhat CRO? Talking of interactive content, is there a bad way to make things interactive?
Yes. As there is ‘Blackhat SEO’, there is also ‘Blackhat CRO’. Essentially, blackhat CRO is conversion rate tactics that are used to mislead the user into clicking or buying. Aside from their unethical implications, they tend not to build trust or CLV.
Both Valentin and Daniel are against having ‘Wheel of Fortune’ on your e-commerce website. This type of conversion trap is not going to help you establish an authentic relationship with your audience.
As Valentin points out, we are migrating from clicks to relationships.
Clicks mean very little if they come from customers who won’t convert and are not going to stay. Focus on building trust and retention.
Why you shouldn’t spend everything on acquisition
Another reason why people are turning more towards CRO, email marketing, and increasing CLV is due to an incredible increase in competition.
Valentin read recently that 44% of all the active e-commerce companies were launched in the last 12 months. There are 3.8 million new websites on the market than there were one year ago. Ads and acquisitions are far more expensive than they used to be.
“The CPC [cost per click] on Facebook is 89% higher. The CPA [cost per action] on YouTube is 108% higher.”
Spending all your money on acquisition is going to put you out of business. Building a relationship with your customers and increasing CLV has never been more important.
How to increase your customer lifetime value (CLV)
Never assume that CLV is guaranteed. Even if you have an amazing product. It’s something you need to focus on and influence. Communicate with your customers.
“Email marketing is the most undervalued channel that a brand has at this moment because it is very cheap, and it’s very effective. You have this opportunity to talk with customers that know about you.”
Unlike ads, email marketing communicates with existing customers (or at least potential customers if they’ve signed up for a discount). Most of all, email marketing allows you to show your customers that you care. Instead of bombarding customers with discounts, Valentin strongly recommends asking for feedback. Doing so shows your customers that you care about them post-purchase.
“You can’t improve what you don’t measure.” Valentin is also a strong believer in RFM segmentation: scoring your customers on recency, frequency, and monetary value. Do your surveys on your most valuable customers - find out what they bought and why they bought it. CRO and CLV require both quantitative and qualitative analysis.
Don’t forget to monitor your customers’ Net Promoter Score (NPS) - how satisfied your customers are.
“If you have issues in your customer journey, fix them. Don’t ignore them.”
Measuring CLV is crucial to your success. Understand who your most valuable customers are. Those are the ones you need to retain (and acquire some of their buddies too!) Retention and word of mouth are the cheapest forms of advertising.
For even more fantastic advice on CRO, customer retention, and improving CLV, visit Valentin on LinkedIn, or visit Omniconvert.
Thank you for listening! We come out with new episodes every Thursday, stay tuned!
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