28% Increase in Customer Lifetime Value thanks to CRO Plus Program

The Brief

Blend partnered with a beauty client to optimise their Conversion Rate through our CRO Plus Program, leveraging the CVO Methodology. Our approach focuses on optimising conversions while maintaining a strong focus on retaining customers and maximising their lifetime value. 

 

The CRO Plus program is our unique approach to Conversion Rate Optimisation that ensures we never increase conversions at the expense of customer loyalty or long-term value. While traditional CRO might focus solely on quick wins, such as offering large discounts to boost conversions, we focus on creating strategies that drive immediate conversions while fostering long-term customer relationships. This means we aim to increase the quality of each conversion, encouraging customers to return, spend more, and ultimately, increase their lifetime value with the brand.

 

By integrating this methodology, we ensure that every optimisation made to the customer journey, checkout process, or marketing touchpoints not only drives conversions but also keeps the customer engaged with the brand for the long term.

 

The beauty client initially presented to Blend with critical issues that were impeding their business growth such as:

  • High subscription churn 
  • Confused customers
  • Discounts that were hurting their bottom line
  • Ineffective upsells & cross-sells

 

The tactics and strategies of our CRO Plus program were the perfect antidote, allowing us to successfully address these problem areas, increase conversions and drive improvements. 

How Blend helped

By leveraging data-driven insights and a range of research methods—including Jobs To Be Done research, Web Surveys, User Testing, and NPS surveys—we designed personalised experiences that enhanced conversions and fostered long-term customer loyalty. Using the PECTI framework and implementing A/B testing, targeted messaging, and CRO tactics, we optimised the website, product offerings, pricing, and the overall customer journey. Throughout the process, we continually analysed key performance indicators and customer behaviour to make data-driven decisions, providing regular reporting with a focus on increasing both conversion rates and customer lifetime value over time.

 

One of the primary tools employed by Blend was Reveal’s RFM (Recency, Frequency, Monetary) analysis, which allowed for effective customer segmentation based on purchase history and engagement levels. RFM analysis is a technique used to categorise customers into segments based on three key factors:

 

  1. Recency: The time since the customer's last purchase. Recent customers are often more engaged and likely to make repeat purchases.
  2. Frequency: The number of purchases made by the customer over a specific period. Customers who make frequent purchases are indicative of higher engagement and loyalty.
  3. Monetary Value: The total amount of money spent by the customer on purchases. Customers with higher monetary value contribute more to the business's revenue.

 

Through RFM analysis, several key findings emerged. 

  • A clearer understanding of high-value customers (power customers) allowed us to create conversion-focused messaging and more targeted strategies.
  • Specific products that were shown to drive conversions (sticky products) were promoted across touchpoints to capitalise on immediate sales, while toxic products were demoted to prevent poor customer experiences and reduce churn.
  • Purchase frequencies were identified, which allowed for more optimised subscription plans and timely offers, making it easier for customers to convert at their ideal buying intervals.

 

To capitalise on these insights and elevate customers to the highest RFM level, known as "Lovers" who are highly valuable, loyal, and premium-paying customers, Blend devised effective CRO strategies:

 

  • Attracting lookalike power customers: By targeting individuals who shared similar characteristics and behaviours with existing high-value customers, we drove conversion rates by optimising audience segmentation and improving on-site personalisation. 
  • Promoting sticky products: By focusing on products that consistently led to conversions, Blend emphasised these products at key touchpoints to ensure customers were encouraged to purchase these items. Simultaneously, toxic products were either demoted or discontinued to prevent negative customer experiences and mitigate any adverse effects. 
  • Aligning subscription frequencies with customer behaviour: Subscription frequency offers were tailored to ensure customers had a seamless experience, reducing friction in the purchase process and increasing the likelihood of repeat conversions.

 

That’s not all though. 

 

Through the integration of Omniconvert’s Reveal and Klaviyo, Blend successfully implemented a targeted email marketing strategy that addressed each customer's specific needs and behavior based on their RFM level. 

 

Using the RFM data, Blend could identify customers who were more likely to make immediate purchases and designed personalised email campaigns in Klaviyo to re-engage them, focusing on upsells, cross-sells and timely reminders to encourage immediate action. 

 

Customers who had not made a purchase in a while were targeted with tailored email offers, highlighting new products, subscription messaging, and exclusive discounts. These emails were designed to re-engage customers, encouraging immediate conversions while also fostering their journey toward becoming loyal, repeat buyers. 

 

The proof is in the pudding, as they say. Through email marketing alone, we were able to increase their Owned Revenue by 55%. 

 

The second tool we utilised for this client's CRO Plus Program was conducting NPS (Net Promoter Score) surveys, powered by Omniconvert. NPS surveys are a widely recognized method for assessing customer satisfaction and loyalty. They measure the likelihood of customers recommending a company's products or services to others, using a scale from 0 to 10.

 

Key findings from the surveys included:

  • A lower-than-expected price sensitivity among customers
  • The need for improved customer service speed
  • An overstocked inventory
  • Customers expressing genuine love for the products

 

To address these findings, Blend developed tailored ideas and solutions that focused on driving conversions:

  • Refined product messaging to better communicate the value and benefits to customers, which increased the likelihood of conversion 
  • Enhanced customer service tools and training to reduce barriers to conversion related to customer support 
  • Reduced discounts on bulk purchases to avoid overstocking and create smoother checkout experiences
  • Removal of subscription purchase savings to align with customers' actual needs and purchasing behaviour, simplifying the buying process and encouraging quicker conversions by focusing on the product's true value.

 

The integration of Klaviyo and Omniconvert also enabled the creation of NPS Survey Request Emails, which gathered feedback and allowed for actionable responses that improved the customer experience, and set the brand up for future conversions.

 

The third tool employed by Blend was that of Message Mining, which involved analysing customer reviews, testimonials, visitor feedback, customer support interactions, and competitors. This process allowed for a deeper understanding of customer pain points, key benefits, and common objections.

 

Based on the message mining insights, Blend devised effective strategies to address these findings: 

  • Product page copy was rewritten using the problem-agitate-solution (PAS) framework, emphasising how the products solved customers' pain points, driving higher conversions by aligning product benefits with customer needs
  • Detailed FAQs that specifically targeted the most common concerns identified through message mining, providing customers with the information they needed to feel confident in their purchase decisions
  • Language levels were adjusted to ensure the communication style was clear, engaging, and aligned with the brand's tone, improving the on-site experience

The results

Through the implementation of Blend's CRO Plus program, the beauty client achieved remarkable improvements in key metrics over a 12-month period. These results demonstrate the effectiveness of the strategies and initiatives implemented:

 

✔︎ Average Order Value (AOV) increased by 11%, indicating that customers spent more per transaction on average, leading to higher value per customer and increased revenue potential.

 

✔︎ Conversion rate improved by 25%, indicating that a higher percentage of website visitors successfully completed desired actions, such as making purchases or subscribing to services. This reflects stronger customer engagement driven by the optimised user journey and CRO strategies.

 

✔︎ Revenue per session surged by 33%, meaning each visit generated more revenue, highlighting the increased value extracted from each customer interaction after journey optimisations.

 

✔︎ Owned revenue from email and SMS marketing grew by 56%, showcasing the effectiveness of targeted, personalised messaging in re-engaging customers and boosting conversions through owned channels.

 

✔︎ Overall store revenue skyrocketed by 96%, reflecting the collective impact of the optimisation strategies across the  entire store ecosystem, leading to substantial business growth.

 

✔︎ CLV saw an uplift of 28%, demonstrating the long-term benefits of fostering customer retention, repeat purchases, and overall profitability through a balanced focus on both immediate conversions and long-term value.

 

These results highlight the power  of Blend's CRO Plus Program in driving both short-term conversions and sustained business success.

56

Increase in Owned Revenue Attributed to Email Marketing in Q1 2023 compared to Q1 2022

11

Increase in Average Order Value over 12 months

25

Increase in Conversion Rate over 12 months

28

Increase in Customer Lifetime Value over 12 months

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