Conversion Rate Optimization (CRO) Fundamentals: Building Value

Like most e-commerce professionals, I start most mornings obsessing over the previous day's average order value, conversions, and sales. While keeping KPIs at front of our business strategy is important, often in our pursuit to ramp up those rates we overlook the most fundamental principle – simply creating value for our customers.

The customer is indeed king – and like any sovereign, they demand value. They seek not just a product or service, but a holistic, satisfying experience that justifies their investment in your brand. A seamless, intuitive website, secure payment systems, excellent customer service, and quality products all combine to form this experience.

Understanding the Value Exchange

When customers perceive the value they gain is greater than the price they pay, the probability of conversions automatically increases. The concept is simple, yet many businesses struggle to implement it effectively.

At first glance, you might equate the concept of providing value to customers as giving them "more for their money". But it's deeper than that; this exchange of value happens at every stage of the sales funnel, not just when you are exchanging products or services for actual money. Successful brands freely give value to their customers and clients, as they know that fostering trust, building relationships, and delivering life-enriching content builds a steady trickle of loyal customers that keep coming back for more.

Think about it: When a prospect clicks on an ad, post, or article you've written, they are exchanging their attention and time for any potential value they can extract. When a lead gives their email address, they are selling you access to their inbox for the offer of value you are proposing.

Consider your own experiences: what does it take to get you to hand over your email address? Does it take a discount or a promise of exclusive content? What compels you to "Like" and "Follow" pages and creators? 

I try to remember that every interaction I have with my customers needs to have purpose, clear intent, and a clear value proposition. 

The Value of Customer Attention

I challenge you to reconsider the value exchange that occurs with every interaction you take with your customers. Ask yourself: what is the value of my customers' attention? What is the value of the space in their inbox or on my social media feed?

While the most obvious answer to building value might be discounting, how do we otherwise increase sales and elevate our place in the customer's mind without sacrificing margin dollars or harming our brand perception? 

The easiest answer is to provide content that will enrich your users' lives. Share something engaging that makes them laugh, makes them smile, or makes them think and reflect. Connecting these dots will help you explore creative ways to build value, share your knowledge, and establish authority while escaping (or at least reducing reliance upon) the endless promotion cycle. 

Of the dozen or so salespeople that reach out each week, do you know which ones stand out? Do you know who I intend to maintain connections with, even if the fit or timing wasn't right? Those that provided me value – unprompted, unsolicited, and unmotivated by fear. Even if you're not the best, the fastest, or the cheapest, if I trust you and perceive our relationship as a relevant value-add to my life, I'm going to turn to you for answers when the time comes.

Demonstrate Value and the KPIs will Follow

If you work in e-commerce or digital marketing, you're not in the business of selling products or services. You're in the business of selling experiences and building value for current and potential customers. This is the cornerstone of improving conversion rates and creating sustainable growth in e-commerce. Therefore, while setting strategies, don’t let the conversation revolve solely around numbers. Instead, focus on creating an enriching user experience that's filled with value. The numbers, then, will follow.

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