Valentin Radu: Customer Value Optimization

Marketing can be used for both aquisition and retention. Keeping your existing customer happy and shopping is what Customer Value Optimization is all about.

What if you were to know that a specific group of people will spend $800 on your site this year? That $75 price tag to acquire them might not sound so high now. This is exactly the type of scenario that Valentin Radu brought up on last week’s podcast that was all about Customer Value Optimization.

We chatted with Valentin about what data companies should be looking at in order to figure out who their most valuable customers are and what to do once they find these “soulmate” customers, as he refers to them. 

Valentin Radu is the founder and CEO of Omniconvert, a growth enabler that leverages technology to help eCommerce companies increase customer lifetime value and lower customer acquisition costs. He is a prolific speaker and a CVO (Customer Value Optimization) evangelist across various stages.

A father, husband, and pet parent too, Valentin is also the Founder and Instructor at CVO Academy. Here he teaches eCommerce brands on the best tactics to scale their companies profitably and sustainably. 

Optily CEO, Brendan Hughes, and I had a lot to learn from Valentin, but these three topics stood out the most:

  • RFM modeling and the data you need to be measuring
  • Building customer-centric online experiences
  • Distilling the motivations into messaging

Definitely take the time to check out the full half-hour episode if you can. But, I totally understand if you’re pressed and need a quick summary. We’ve got the teaser clip for you below, along with three highlighted topics that we covered off with Valentin in last week’s episode.




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RFM Modeling: What it is and what data does it require?

RFM stands for recency, frequency, and monetary. This means that your most valuable customers are those who purchased recently, who shopped multiple times, and who spent a lot. Of course, we all want more of these!

But how do you go about figuring this out? Well, you need to make sure you’ve got enough data so you can pick out who your most valuable customers are, continue keeping them happy, and also find more of them.

Valentin suggests picking out these “soulmate” customers who are the ideal customers a company could want. By using a technology such as Omniconvert, companies can extract this granular data including the number of purchases, total order amount, and date of last purchase. With this data, you can segment out the best customers.

Then you take this list of existing customers, feed them into Facebook’s lookalike audience builder, and you can then market to customers who are similar to this group.  

Making Customer Value Optimization customer-centric

By segmenting your customer base, you can tailor your nurture campaigns to address their unique needs. In addition to the coveted “soulmates,” Valentin also introduced two other segments that can be identified through proper RFM modeling: new passions and “about to dump you.”

The new passion audience is very interested in your offering and have a high recency score, but might not have bought frequently. They are a great group to capitalize on as they are still exploring their options and you have the opportunity to really wow them.

The “about to dump you” cohort are those who are slipping away. These are people who had a high potential for spending, but they haven’t been nurtured in the right way.

Valentin is very forward-looking and knows that this kind of personalization is the future of successful eCommerce marketing. He notes that leaders need to recognize this and shift their approach toward customer-centric marketing.

RFM modeling for informed advertising

Once you know your customers it gets a lot easier to advertise. Market research, general targeting, and what you think your main selling points are can be a good start. But once you have a solid customer base, it’s important to really dig deep to find out why they’re buying from you.

By using the tactics Valentin discusses, you can pick out a few of your soulmates and interview them. Identify why they are buying your products, which products specifically, and what sets you apart from the competition. 

Once you have this information, you can spin it into campaigns that focus on the features they’ve identified. No more shooting in the dark!


Partnership Announcement: Conjura

We’re thrilled to announce that we’ve partnered with the Conjura, the eCommerce analysis platform for profit powered by data.

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