How To Boost Your Profits Through Customer Value Optimization

Jeffrey Feldberg
4 min readFeb 6, 2024

It’s a typical misconception among business owners that the skills used to build a business are the same ones used to sell it. On the contrary, operating a business and executing a successful exit strategy requires different skills. Jeffrey Feldberg, host of The Deep Wealth Podcast, speaks with entrepreneur and author Valentin Radu to explore the concept of customer value optimization (CVO) and how it can significantly influence your company’s profitability and success.

Valentin is notable for defying the norms and pioneering a new category, customer value optimization, to assist retailers in achieving growth. As the thought leader behind OmniConvert, a SaaS company, he provides growth solutions to midsize e-commerce websites aiming to become customer-centric. His latest product, Reveal, aids e-commerce companies in uncovering hidden gems in their data, improving customer lifetime value, customer retention, and delivering personalized customer experience across all channels.

Focus on Customer Lifetime Value

As entrepreneurs, we often place a significant emphasis on acquiring new customers and overlook the value of our existing ones. However, nurturing existing customers often presents a cheaper and more effective path to increased profits, wealth, and market disruption. The grave mistake entrepreneurs often make is underestimating the lifetime value of their existing customers. Neglecting to maximize the value that each customer brings to your business over their customer lifecycle leads to missed opportunities for increased profitability.

Today’s entrepreneurs often make decisions based on assumptions rather than data. However, making data-driven decisions can significantly reduce the risk of failure. Customers are not the same. Therefore, using tools like RFM (Recency, Frequency, and Monetary Value) to analyze customer behavior is essential in understanding who your ‘good’ and ‘not so good’ customers are. Referral programs can be an essential growth tool for your business. Done correctly, they can transform one-time buyers into lifetime customers and even contribute up to 40% of your company’s revenue.

Meaningful Customer Data Drives Decisions

Valentin emphasizes the necessity for businesses to be data-driven in their decision-making process. Understanding your customers, their habits, preferences, and needs inform business decisions to a great extent. Remarkably, only 6% of company leaders make data-driven decisions, leaving considerable room for improvement.

Valentin’s book, The CLV Revolution, is integral in underscoring the importance of customer value optimization. The book debunks common misconceptions among entrepreneurs, underlining how most are missing key opportunities for growth, and explains in depth how to rectify these oversights.

Successful businesses leverage product merchandising, marketing, and a positive customer experience to convert one-time buyers into lifetime customers. Valentin Radu’s metrics-driven and analytical approach to customer value optimization can be a game-changer for your business. Start by taking an in-depth look at your business and understand how you generate money and who your most profitable customers are. Recognize that there’s an enormous opportunity to help your customers make progress with your product, so pay attention to their needs, wants, and struggles.

Three Pillars of Customer Value Optimization

Valentin’s methodology for customer value optimization revolves around three pillars:

  1. What You Sell: This is your product or service. Ensure it delivers undeniable value to the customer.
  2. What You Say: This represents your marketing strategy. Are you communicating the right message?
  3. What You Do: This is your entire customer experience from purchase to post-purchase interactions.

These pillars, when properly synchronized, work together to transform your one-time buyers into lifetime customers.

The Power of Referral Programs

Aside from enhancing customer lifetime value, Valentin also emphasizes on the power of referral programs. Business owners often neglect this strategy. However, an effective referral program has the potential to significantly boost your profitability by leveraging the power of recommendation from satisfied customers.

Valentin’s insights into customer value optimization serve as a guiding light for businesses seeking to maximize profitability. By understanding the true value of each customer and focusing on improving the customer experience, businesses can unlock new levels of success and sustainability. As Valentin posits, “Profit doesn’t happen out of the blue but are emotions and irrational decisions made by strangers that are looking to make progress in their lives with the products that you’re selling.”

Remember, be kind to your business, because it has more value than you think.

Do you want to secure your financial freedom? Take your business to new heights with the 90-day Deep Wealth Mastery program. Master proven tactics to optimize profits, enterprise value while, and your post-exit life. Click here to start your journey_**_



Jeffrey Feldberg

Helping you capture the best deal on your exit through the Deep Wealth 9-step roadmap. Leverage the same strategies I created for my 9-figure liquidity event.