Customer Value Optimization for High-Ticket Dropshipping
This will be your Best Customer Retention Strategy!
Managing a high-ticket dropshipping business is not easy. For your eCommerce store to be sustainable, you need to have a high web traffic constantly. This is not to mention the target conversion rate that you need to achieve to maintain your business.
In high-ticket dropshipping, crafting a solid marketing strategy is extremely important for the very reason that the success of your dropshipping business relies on the success of your marketing campaigns. Remember, since you’re not busy managing your merchandising and inventory, your focus should be invested heavily on marketing and sales.
However, if you think that all your efforts are going nowhere and your bottom line is not improving as expected, then the answer must be customer value optimization.
In this blog, we’ll be giving you an introduction on customer value optimization and how you can apply it to your dropshipping business.
Growing your High-Ticket Dropshipping business
It’s a well-known fact that in growing an eCommerce business can be done in three ways:
- By increasing your customers
- By increasing your customers’ average order value
- By increasing the transactions of your customers
However, for you to grow your high-ticket dropshipping business, you need to have a solid foundation to start with. A rock-hard foundation means a good niche, reliable supplier, and an excellent customer service. However, if you’re still uncertain about starting your dropshipping journey, here are the top reasons on why you should start a high-ticket dropshipping business.
What is Customer Value Optimization?
Customer Value Optimization (CVO) is the process of creating a sales funnel to help you get the most out of your marketing campaigns. Regardless of the channel that you are using, CVO will help nurture your leads, every step of the way until the actual conversion.
To grow your bottom-line, you need to have a powerful sales funnel, which will catch the attention of your customers, lure them into getting to your store, and eventually purchasing an item. That’s essentially the pattern that all eCommerce brands must follow. The problem is, not everyone can do it effectively. The key here is to leverage on customer value optimization.
In CVO, the main goal is to engage your potential customers with every customer touchpoint. This practice takes a lot of practice since you need the right precision to ensure that it will actually work. In fact, over 90% of eCommerce brands utilize CVO to some extent and have actually attested that CVO has helped increase their bottom-line significantly.
7 Phases of CVO
Since we mentioned “every customer touchpoint”, it’s important that you understand what these touchpoints are and how it equates to the 7 stages of CVO.
1. Identifying your Niche
This is inherent in every business. By now, you should already have a good niche in mind. However, the challenge lies on the suitability of your niche to your target market. One way to look at it is to ensure that your product can be of great value to your customers.
A good niche should either solve a customer’s issue or bring huge convenience on the part of the customer. Basically, your selected products should be of great help to your customers, this is so your customers will feel good about their purchase. However, there should be a balance between the product and target market. Of course, it’s nonsense if you’re selling a very good product when at the end of the day, your target customers are not willing to spend for it.
Hence, always keep in mind that you should only aim to sell a product which the customers want and will actually spend for. Remember, in deciding which products to sell, determining its marketability is essential.
Once you find a good niche with all the essential requisites mentioned above, you can now move forward to the next stage.
2. Choosing a Traffic Source / Platforms
This is exactly where “every customer touchpoint” applies. It’s the stage where you select the platforms that you will be using. These are your advertisements, social media platforms, videos, blogs, email blasts, and whatnots. Selecting your preferred marketing channels is important since it will define the marketing strategies that you can run.
In selecting your traffic sources / platforms, make sure that you have the means to get analytics or insights to gauge how well you are performing in a specific channel, so you can easily track and adjust your campaign.
3. Create a Lead Magnet
This is going to be your initial touchpoint with your customers, so it will greatly define the next steps of your customers. This is where you will release offers that customers can’t easily reject. It can be in the form of a one-time coupon, free downloadable, or any other essential content. Remember that this is your first-ever customer touchpoint so it must be a good bait, one that will surely catch the attention of your potential customers.
Having several lead magnets for your different segments is the right way to do it. Also, if you do this right, people who usually download your free content or sign up are mostly likely to buy from you.
4. Tripwire offer
This is the first transaction that you will have with your customers. These are initiatives that actually drive your customers to buy or sign up with you. Typically, these initial products are sold at a loss, so your customers can break the barrier and actually try the items out with minimal risk on their part. This is the part where you will release irresistible offers, so that you can make its value obvious.
5. Core Offer
If you were indeed able to lure a potential customer in, then this is the best part. The part wherein your lead will actually buy the product or service that you are advertising. In here, it’s important that you effectively communicate the value of your brand and the quality of your products. It’s the perfect time to show your best-selling products as the chances of buying are really high at this point.
The good news is, your real profits don’t stop here...
6. Upsell / Upgrade Offers
Once your customers actually buy your core offer, the next best thing to do it to redirect them to upsell / upgrade pages. This will surely increase your profits to a new level. Generally, these are products that go well as an accessory or as an upgrade of the base model that you offer. For instance when you sell musical instruments, extra strings, picks, and guitar cases will come handy for the base product of guitar. Basically, these are added streams of revenue that do not require much marketing efforts as they normally go with the purchase of the base models.
7. Return Path
This is the most important part of CVO, the actual customer retention. In this stage, the main goal is to bring customers back repeatedly. A return path typically includes abandonment cart offers, loyalty programs, or ad retargeting. Of course, the main goal of this stage is to ensure that potential customers are reminded to revisit their checkout carts. Essentially, the goal is to push the customers towards your sales funnel, so that they will purchase a tripwire or another offer they didn’t initially buy. It’s also a useful trigger alert for existing customers looking to replenish their purchases, which will surely help maintain and grow your existing customers.
When you neglect repeat customers you can be missing out on the potential revenue that you could be gaining. To give you a better understanding, here are the top reasons on why customer retention matters.
Essentially, these are the basics that you need to know about Customer Value Optimization in High-ticket dropshipping. If you need an in-depth guide on how to run effective campaigns for your business, check this eCommerce masterclass for high-ticket dropshipping, this will surely help you build a strong foundation in your high-ticket dropshipping journey.
What do you think of this blog? Did it help you in any way? Leave us a comment below!
eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
AFFILIATE DISCLOSURE: Some of the links on this page may be affiliate referral links. I will get a commission from the vendor when you make a purchase after clicking them at no added cost to you. As a result, many of them also provide you with a special discount just for using my link. You can go directly to their support if you have any issues with their software or product.
Step-By-Step Training for High-Ticket Drop Shipping
Here are the next steps you'll need to take to start your high-ticket dropshipping business:
- Lesson 1: Research The Market And Choose Your Niche
- Lesson 2: Start Your Shopify Website and Legal Business Structure
- Lesson 3: How To Find And Recruit The Best Suppliers
- Lesson 4: Optimize Your Shopify Website and Sales Funnel
- Lesson 5: Launch Your Store With Paid Traffic
- Lesson 6: How To Manage Your Business
- Lesson 7: Automate and Outsource Your Day-To-Day Work
Resources for Starting A High-Ticket Drop Shipping eCommerce Store
These are the resources I've created to help you start your own high-ticket dropshipping eCommerce store:
Recommended Resources for eCommerce Entrepreneurs and Digital Nomads
- Best VPN Service
- Best Keyword Research Tool
- Best Domain Registrars
- Best Web Hosting
- Best Business Email for Small Business
- Best Small Business Phone System: Best VoIP for Small Business
- Best Virtual Mailbox for Every Traveler and Digital Nomad
- Best LLC Services: The Top 7 Business Formation Experts
- Best Business Credit Cards for eCommerce and High-Ticket Dropshipping
- Best Business Checking Accounts for eCommerce and High-Ticket Dropshipping
- Best Online Trading Platform for Entrepreneurs
- Best Credit Report Service: Excellent Tools To Monitor Credit Score
- Best Bookkeeping Services for Small Business
- Best eCommerce Platform for Dropshipping
- Best Shopify Themes for eCommerce
- Best Shopify Apps for Drop Shipping
- Best Email Marketing Software for Small Business
- Best Landing Page Builder for Shopify
- Best Social Media Management Tools
- Best Answering Service for Small Business
- Best Online Course Platforms