This podcast conversation discussed the importance of Customer Value Optimization (CVO) for agencies. CVO is a more intense approach than traditional Customer Acquisition Cost (CAC) metrics and focuses on qualitative research pieces such as jobs to be done surveys and data analysis such as RFM segmentation. This helps to create stronger hypotheses and plans based on data, rather than just looking at conversion rate, average order value, and other immediate metrics.
The challenge for agencies now is getting people to understand why CVO is important and getting alignment in teams in order to achieve an overarching goal. This podcast conversation discussed the importance of breaking down silos between departments and agencies in order to create better customer experiences.