Podcast: Optimizing the Lifetime Value of Existing Customers with Michal Parizek

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In this episode of Landing Page Optimization, SiteTuners CEO Tim Ash and Michal Parizek, a conversion specialist at Avast, discuss conversion points after the purchase, communicating with paying customers, and lifetime customer value.

More Information, More Analysis

Tim and Michal talk about the differences between conversion for someone who doesn’t know about you and your company, and someone who has already purchased something from you. Michal notes that when Avast asks paying customers to renew their anti-virus license, they already know certain things, including engagement. 

So with more data, the challenge for companies like Avast is segmenting the data to find value, which they already do, and using the data to personalize messages, which they are studying.

In-Application Conversions

Michal tackles the challenges of communicating with customers when the product is software, and when the release cycle lasts up to a year. Tim and Michal note that you cannot just be present when the license is up for renewal, and it’s time to ask for more money - you need to have a presence. 

Whether the presence is via monthly emails, through the app interface itself, or even via the application tray for certain events (virus definitions being out of date, etc.), the trick is to find the right balance between communicating and staying relevant but not being annoying or overly aggressive.

Tougher to Test

Michal and Tim discuss the merits of testing conversions for software, and both agree that price testing is great for the space. Tim discusses bracketing - making items seem less expensive by displaying the expensive item first - and Michal agrees this is very useful. 

The two also tackle the unique challenges of post-sale conversions. With the typical renewal cycle being annual, tests become a challenge. In a year, the market will have changed, the dominant operating system can change, and any of a dozen things can influence the conversion compared to the year before. Tim notes that to help deal with this, samples can be subjected to 3-month email tests, limiting the time period, and still making for valid test segments.

Building Relationships

Michal notes that post-sale conversions are really about three things:

  1. Building relationships with clients, and providing value on top of the purchase
  2. Segmenting the customers, and using the data to study what needs to be done
  3. Creating ample opportunity to provide feedback (surveys, live hangouts, communities, etc.)

The key idea is to focus on the relationship and not just a sale, and to focus on the lifetime customer value. 

First Air Date: September 9, 2013

Listen online or download the podcast from WebmasterRadio.fm