Acquire Higher-Value Customers With This One Change

+38% more profit (CLV)?

The secret:

Acquire higher-value customers.

In today’s Thought, we’ll discuss how to increase profit & CLV by using purchase motivation insights.

Let's dive in 👉

All customers aren't created equal

Retention doesn’t start after the purchase.

It starts much earlier, with the acquisition.

The easiest way to think of it:

There are bargain hunters, and customers who don't mind spending more.

You guessed it, which segment drives more profit for your business.

But, how to find those that are worth more?

Segment by purchase motivation

Brands overlook one crucial aspect to find high-quality customers:

The purchase motivation; the reason why customers buy your product.

Why is that?

A stronger motivation creates stronger retention

The deeper a customer's desire for a solution, and the more painful the problem, the more likely they'll continue using your product.

Customers who “just wanted to try it out” will result in a lower CLV, and less profit for your business—guaranteed!

On the other hand, customers who have a strong motivation, will stick around.

Because they:

• want to solve a health issue
• loose weight
• look younger
• etc.

How to find high-value customers

Simply ask customers after the purchase, what they look to achieve with the product.

Cluster and segment by purchase motivation.

Sort by number of orders and analyze profit (CLV) by segment.

Takeaway

The best way to improve profit & CLV is to acquire higher-quality customers.

Purchase motivation is an easy way to find out which customer segment drives the highest profits (CLV) for your business.