The hypotheses that silently make eCommerce people fail dramatically

If you're reluctant that:

> NPS is a transformative tool for companies that get data

> Customer research means looking at the demographic tab in Google Analytics

> CLV is just a buzzword that has nothing to do with a company's growth;

Stick around. I want to change your mind.

If you think the opposite...

Let me enhance your understanding:

So, let's get started.

Many smart companies wake up to the new reality:

The shift from acquisition marketing to lifecycle marketing is happening.

There are a few reasons for that:

> Cookie deprecation: high CAC

> More players in the market: high CAC

> High shipping costs: need to decrease CAC

8 ways to decrease CAC:

1. Acquire better customers

2. Destroy your margin with discounts

3. Increase the conversion rate

4. Give $##%t about your customers to make them come back & generate word of mouth

5. Experiment other acquisition channels

6. Sell Outstanding products

7. Make better creatives

8. Improve targeting 

As you can see, 2 is not a very solid option, while E can be done, but not without a very significant effort.

However, choosing all of them means relying on some hypothesis.

The 3 most dangerous of them all in marketing:

1 “We know our customers and why they buy from us.”

2 “Our products are good enough.”

3 “We offer a great customer experience.”

These are, for most of the companies, wrong.

It should all start with knowing what’s happening in the minds of the customers.

Yes, to find those answer you need to master the art of listening. 

Meaning, as Val Geisler said today in the CVO Live, to talk TO your customers not AT your customers. 

Here are a few questions that you need answers to:

Who are your best customers?

What are they struggling with?

What are the nudges that you can use to make their buying behavior be triggered?

What desired outcomes are they really after and, more importantly, how are your products helping them achieve those outcomes?

These are some of the things that you need to get those answers:

1. Monitor pre and post-delivery Net Promoter Score.

Then, segment the data based on the customer segment.

Look for anomalies in what they state.

NPS is a swiss knife.

It helps you fix the customer journey, eliminate toxic products, find what messages to use, determine what you should be selling next, prevent churn, be happy that you do your job like the top 1% marketers on this planet. 

2. Use RFM to segment your customers

Find what products are being bought by the most loyal customers. Where they are coming from, how long it takes for them to buy again, etc.

3. Run in-depth Jobs To Be Done interviews - take 7-10 fresh customers that bought many times and interview them. Analyze their responses.

How they verbalize their problems = Your core messaging & the briefs for your creative team to create outstanding ads, landing pages, emails flows, etc.

What context they are in when they struggle = the context for which you should advertise

4. Evaluate the revenue impact of each job.

To understand on which jobs to bet on, run quantitative research to validate which jobs are the most meaningful for your total revenue.

AND THEN AND ONLY THEN 

5. Change the creatives, messages, channels, website, agency, team, product