Unlocking Customer Value, It Is INCREDIBLY HARD And Likely Doesn't Work

Have you ever walked the vendor hall at a trade show? You get an immediate view into the mindset of trade journalists and vendors when it comes to unlocking customer value.

• "Connect with us on LinkedIn and you get a free pen!"
• "Download our white paper on customer relationship marketing and we'll enter you into a drawing for a free iPad."
• "Spin the wheel to discover the discount you earn on our AI-based email segmentation solution."

Yes, technically those are all elements of the "unlocking customer value" playbook. They're mindless and ineffective methods. But they are in the playbook.

It is INCREDIBLY HARD to unlock customer value ... which is why vendors and trade organizations default to free pens and drawings for a free iPad.

I recently analyzed a brand that had the following dynamics:

2015:

• 35% rebuy rate, $200 spend per repurchaser, $70.00 customer value. Average price per item purchased = $40.00.

2025:

• 35% rebuy rate, $265 spend per repurchaser, $92.75 customer value. Average price per item purchased = $53.00.

Did this brand "unlock customer value"? On the surface, yes! In reality, no. This company just raised prices by 2.9% per year for ten years ... approximately at the rate of inflation. The company discontinued old items, then introduced "new" items that were comparable but were more expensive.

Just for kicks and giggles, I asked Google to share with me what it means to "unlock customer value".

My goodness, is this a tired list. Relevant and efficient personalized shopping experiences? Reducing friction? Offering exclusive discounts? BOPIS? That's what Sears should have focused on?

Google AI continues.

Optimizing inventory is unlocking customer value? Is it any wonder we're in trouble?

AI wouldn't come up with this nonsense unless is scraped the internet to learn from Thought Leaders.

A brand that did a reasonably good job of unlocking customer value over time was Nordstrom. They were taken private last year. What happened to their stock price prior to being taken private?

Look at the 2015 - 2025 timeframe ... this is a retail brand that unlocked customer value as well as anybody ... they lost 69% of their market value over that time ... if you adjust for inflation the story is much worse.

So ... it's clear we really don't know what we're talking about when we talk about Unlocking Customer Value.

Tomorrow, we'll start exploring ideas for increasing retention, potentially loyalty, and profitability.