The trick? Share the pain.

My head-scratcher this week is about…

…change.

And how it’s mandatory to share awareness about the pain of top management if you want to change an organisation.

I’ve been privileged enough to travel to 45 countries in this life.

In most of them, I did (or tried to do business - looking at you, Japan 😉)

Despite the cultural differences or the work ethic, which vary like crazy from one country to another, I noticed over and over again the same few patterns harming most enterprise companies:

1. Organisational inertia is hard to fight. 

"We've always did things this way." 

"We're a big organisation. Things take time!"

Agree.

It is like in physics. A big boat needs more time and space to change direction.

But it has to change direction nonetheless - unless you want it to crash into the iceberg.

2. Most people in those companies know that things aren’t how they should be.

(I'm thinking of product-centric organisations claiming to be customer-centric organisations.) 

Unfortunately, however, the same people feel that they can't turn the ship around. Mainly because of #1.

3. Chaotic reporting

The main target for almost any organisation that I've met is the revenue. For few of these companies, the margin is the goal.

Following revenue (or margin, for that matter), tricks you into focusing on the effect, rather than on the cause. 

It’s like in weight loss: to reach your target, you must monitor what matters - usually, calories and movement. 

Those are the lead indicators. 

And those indicators are what you should measure - not their effects. 

4. Random or unsustainable growth targets.

The combination between #3 and a lack of awareness around what leads to revenue and profit growth (hint: # of customers & how much they spend down the line. I.e., CLV) leads to leaders who set targets based on desires. 

They do it without thinking about what's possible, given the resources allocated to reach those targets.

5. Marketing doesn't get finance, while finance doesn't get marketing.

Look at the good old duck-rabbit illusion.

Marketing asks for more money because "the competition is tougher than ever", CAC is at +200% than it was 2 years ago.

While finance needs to see actual returns and profits happening - "the competition is harder than ever".

Ok, so what's the catch, Valentin?

How to sort this out?

The answer, my friend, is blowing in the wind!

The wind of change, of course.

There's one simple thing that:

• has the highest potential,
• it's easy to do,
• it's really cheap,
• it's fast,
• and has a lot of impact.

What is it, you ask?

Measure what matters: set goals on the CLV, CAC, and NPS, and voila: you found the path to profitability. 

Measuring what matters has awesome consequences:

1. Management know the reasons why customers to buy or stop buying.
2. Management changes the targets towards those figures. 
3. Management changes the incentives: from revenue generation to Customer Lifetime Value Growth. 
4. The entire organization is now incentivized to have more profitable customers, which means more happy customers, more relevant campaigns, and better spending (think CLV: CAC vs. ROAS) 
5. Everyone wins - the company, the managers & their teams, and the customers. 

Here are the phases that companies go through in order to nail CVO:

Read more about it in my book. 

Which, by the way, is fresh out of the prints. 

Well, we fast-tracked printing as a limited series for one of our open-minded customers, at least. You'll still have to wait a few weeks to get your hands on it. 

However, about 50 people out of 200 asked me to sign it. I felt good, like an author. 

But still like fraud, an impostor. It seems this feeling never leaves you…

5 (more) Ideas to Grow Your CLV

Last week I shared with my email subscribers 5 ideas that lead to CLV growth.

Today I’m back with five more. I’m full of ideas you see - after working so many companies and training them in the CVO methodology. 

(if you want to work together, message me, and let’s make things happen!)

1. Improve CX

If you give a $##%t about your customers, they will come back. It’s as simple as that. 

No one likes to live inside a toxic relationship. 

But a brand that respects me, doesn’t use me for my money, and actually care whether or not their products help me? Sign me up.

2. Improve word of mouth (referral programs)

Referral programs work - as long as you’re mindful about the timing. 

Wait until you have enough Soulmates and Lovers. Send them an NPS survey. Once you get the high rating score, guide them through the referral program.

Don’t be that needy brand, asking for recommendations before the delivery guy even picked the order. 

Good things come to those who wait.

3. Improve your creatives.

As in, write them around your Ideal Customer Profile and his JTBD. 

Your customers “hire” your products because they need them to move further in their lives. 

Showcase the path between “now” and “then” in your messages.

4. Create high relevant campaigns with viral potential.

Don’t release “good-enough” campaigns into the wild. 

Brainstorm with your teams until you reach that idea that hooks people in and compels them to learn more. 

It might be hard, but it is worth it. 

Disclaimer: it will only work if your products are outstanding.

5. Cross-sell with partners with the same Ideal Customer Profile.

Yes, you have to find them first. 

And align your purposes - after all, you’re turning a competitor into a partner. 

But in the end - it’s all (or should be all) about making people’s lives easier. And better. You can do it together, can’t you?

🎙️ A new podcast for your listening pleasure.

Will Laurenson and I sat down for an insightful talk on CVO during his podcast. 

Basically, if you really, really, really want to do more than simply running Ads and need a deep-dive into the health of a business and understand where growth is really coming from, the episode is for you. 

We talked about... 

• What is CVO exactly?
• How can brands use CVO to grow?
• The importance of speaking to your customers. 
• And so much more.

Thank you, Will, for having me and helping the world know about CVO!

Check out the episode here.

How leading a business resembles conducting an orchestra - new CVO LIVE Episode.

How, indeed?

In the next CVO LIVE episode, Itay Talgam will join me and share some of his wisdom. From the TED Stage to CVO Live, I'm eager to pick his mind about leadership through an orchestra conductor's eyes!

 Watch this space - for the registration link and RSVP details.

Did you know that…

…with Omniconvert Reveal you can analyse NPS down to your store?

When customers only need to cross the street to get the products they need from another store, you can’t afford any unnoticed issues. Unhelpful consultants, annoyed cashiers, or clueless store managers could lose you a customer forever. 

Omniconvert Reveal helps you measure NPS to very granular levels - including brick-and-mortar stores- ensuring no problem slips through the cracks. Check it out here.

Do you want more ideas to increase CLV? Let me know - if I get at least 35 answers, I'll go up to 35 with the list.

Until then, enjoy the wind in your sails!