Brand reputation significantly impacts your Customer Lifetime Value, which is why we're going to talk about a topic that might be uncomfortable for some: Which of your products is killing your brand? Yep, that's right. You might have a product or two (or more) that is dragging your brand down, and you don't even know it.
So, let's get started. How do you find out which products are killing your brand? Well, you can start by analysing your sales data. Look at the products that are not selling well, have a high return rate, or are constantly being complained about by customers. These are the products that might be damaging your brand.
But that's not all. You also need to consider the impact these toxic products have on your customer value optimisation (CVO) and customer lifetime value (CLV). Let's take a closer look at these two concepts.
Customer Value Optimisation
Customer Value Optimisation is a process that helps you maximise the value of each customer by understanding their needs, desires, and behaviour. It involves several steps, including:
- Identifying your ideal customer
- Creating a compelling offer
- Optimising your website and sales funnel
- Increasing your average order value (AOV)
- Retargeting and nurturing your customers
If you have toxic products in your eCommerce store, they can negatively impact your CVO in several ways.
First, they might not appeal to your ideal customer, which means you're wasting your marketing efforts on the wrong audience. Second, they might lower your AOV if customers only buy them because they're cheap or on sale. And third, they might lead to more returns and complaints, damaging your reputation and making it harder to retain customers.
Customer Lifetime Value
Customer Lifetime Value is a metric that helps you measure the total value a customer brings to your business over their lifetime. It takes into account how much they spend on your products, how often they make purchases, and how long they remain a customer.
If you have toxic products in your eCommerce store, they can also hurt your CLV.
For example, if a customer buys a toxic product and has a bad experience, they might not come back to your store again. This means you lose out on all the potential revenue they could have brought in over their lifetime. Additionally, toxic products can lower your repeat purchase rate, as customers who have had a bad experience might not trust your brand enough to buy from you again.
Toxic products can be compared to toxic coworkers. Just as a toxic coworker can bring down the morale and productivity of a team, a toxic product can bring down the reputation and profitability of your business. That's why it's essential to identify and address toxic products as soon as possible.
How to Identify Products That are Toxic to Your Brand
Here are a few tips on how to identify toxic products:
- Analyse your sales data: Look at the products that are not selling well, have a high return rate, or are constantly being complained about by customers.
- Monitor your customer feedback: Keep an eye on customer reviews, comments, and social media mentions to see if there are any recurring complaints or issues with certain products.
- Conduct product surveys: Ask your customers directly which products they like and dislike and why. This can give you valuable insights into what's working and what's not.
How to Improve Products That are Killing Your Brand Reputation
Once you've identified your toxic products, it's time to get rid of them. Here are a few strategies you can use:
- Discontinue the product: If a product is consistently underperforming and has no potential for improvement, it might be time to discontinue it altogether. This might seem like a drastic step, but it's often necessary to protect your brand's reputation and focus on products that are more profitable.
- Revamp the product: If a product has potential but is not resonating with your customers, you might consider revamping it. This could involve changing the design, improving the quality, or adjusting the price point. By making these changes, you can turn a toxic product into a profitable one.
- Bundle the product: If a product is not selling well on its own, you might try bundling it with other products to increase its perceived value. This can help you get rid of excess inventory and increase your AOV.
How to Protect Your Brand’s Reputation
In conclusion, toxic products can be a real problem for eCommerce stores, and they can harm your CVO and CLV if not dealt with properly. By analysing your sales data, monitoring customer feedback, conducting product surveys, and using tools like Klaviyo or Omniconvert, you can identify your toxic products and take action to fix them.
Remember, your brand's reputation is on the line, and getting rid of toxic products can be a tough but necessary step to protect it. So, be brave and take action. Your brand (and your customers) will thank you for it in the long run!
Why Your eCommerce Store Needs a Retention Expert like Blend
Suppose you need help with your eCommerce store's retention and customer lifetime value. In that case, you might need help from a team of eCommerce experts specialising in retention, customer lifetime value, customer experience and customer value optimisation. With Blend's expertise, you can take your eCommerce store to new heights and increase your customer lifetime value.
So, don't let toxic products ruin your brand's reputation and profitability. Take action today and ensure your eCommerce store is free from toxic products and get in touch!