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      • Coins to Buy on the Dip
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        • Aqru Review
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        • Earn Interest on Bitcoin
        • Earn interest on Ethereum
        • Earn Interest on Stables
        • What is APY in Crypto?
        • Yield Farming Platforms
        • Yield Farming vs Staking
      • DeFi Crypto Guides
        • Best DeFi Apps
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        • Best DEX Coins
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    • Buy Crypto
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    • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
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      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
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      • XRP Price Prediction
    • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
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      • Buy Solana
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      • Buy VeChain
      • Buy XRP
      • Buy ZCash
    • Best Crypto Exchanges
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      • Binance vs Coinbase
      • Binance Review
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      • Crypto.com Visa Card
      • Crypto Credit Cards
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      • Margin Trading Exchanges
      • Social Trading Platforms
    • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
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      • Buy Tamadoge
    • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
    • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
    • How To Buy NFTs
      • Best NFT Apps
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      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
    • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
    • NFT News
      • Celebrity Backed NFTs
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      • Cheapest NFT Projects
      • Coolest NFT Projects
      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
      • NFT Horse Racing Projects
      • NFT Trading Card Games
      • Sport NFT Drops
    • Invest in the Metaverse
      • Best Metaverse Apps
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      • How to Invest in NFTs
      • Metaverse Projects
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      • Azuki NFTs
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  • Stocks
    • Types of Stocks
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      • Buy Adobe Stock
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      • Buy Medifast Stock
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      • How to Day Trade Stocks
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      • Islamic Brokers
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      • Paper Trading Platforms
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      • Best Forex Signals
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    • Trading Robots
      • Algorithmic Trading
      • Bitcode AI Review
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      • Crypto Bank Review
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      • Bit Index AI Review
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Business 2 Community
  • Investing
      • Best Cryptos
      • Best Beginner Cryptos
      • Best Crypto Under $1
      • Best Crypto Winter Tokens
      • Best Emerging Cryptos
      • Best ERC20 Tokens
      • Best Future Cryptocurrency
      • Best Utility Tokens
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
      • Most Promising Cryptos
      • Next Crypto to Explode
      • Invest in Crypto
      • How to Invest in Bitcoin
      • How to Invest in DeFi
      • Long Term Investments
      • Low Market Cap Cryptos
      • Most Undervalued Cryptos
      • Penny Cryptocurrencies
      • New Cryptos
      • Best Crypto ICOs
      • Best Crypto IDOs
      • Best Crypto IEOs
      • Best Crypto STOs
      • Best Crypto Crowdsales
      • Best Crypto Presales
      • Best Crypto Private Sales
      • Buying Coins Pre Launch
      • Crypto Games
      • Best Blockchain Games
      • Best GameFi Cryptos
      • Best Gaming Crypto Coins
      • Best Play to Earn Games
      • Crypto News
      • Best Crypto Reddit
      • Best Crypto Signals
      • Crypto Tiktok Trends
      • Crypto Youtube Channels
      • Twitter Crypto Trends
      • Crypto Wallets
      • Best Cardano Wallets
      • Best DeFi Wallets
      • Best Ethereum Wallets
      • Best XRP Wallets
      • Crypto Bank Accounts
      • How to Spend Bitcoin
      • How to Spend Ethereum
      • Bitcoin Casinos
      • Best Bitcoin Gambling Sites
      • Best Crypto Lotteries
      • Bitcoin Blackjack Sites
      • Bitcoin Roulette Sites
      • Bitcoin Slots Sites
      • Ethereum Casinos
      • Earn Free Crypto
      • Best Crypto Airdrops
      • Best Crypto Faucets
      • Best Crypto Giveaways
      • Earn Free Bitcoin
      • Make Money With Crypto
      • Earn Interest on Crypto
      • Aqru Review
      • Best Staking Coins
      • Crypto Interest Accounts
      • Crypto Lending Platforms
      • Crypto Loan Sites
      • Crypto Savings Accounts
      • Crypto Staking
      • Earn Interest on Bitcoin
      • Earn interest on Ethereum
      • Earn Interest on Stables
      • What is APY in Crypto?
      • Yield Farming Platforms
      • Yield Farming vs Staking
      • DeFi Crypto Guides
      • Best DeFi Apps
      • Best DeFi Interest Rates
      • Best DEX Coins
      • DAO Crypto Projects
      • DeFi Lending Platforms
      • DeFi Staking Platforms
      • DeFi Swap Exchange
      • DeFi Yield Farming
      • Worldwide Crypto Guides
      • Best Africa Crypto Projects
      • Best Asia Crypto Projects
      • Best China Crypto Projects
      • Buy Bitcoin AU
      • Buy Bitcoin CA
      • Buy Bitcoin DE
      • Buy Bitcoin IN
      • Buy Bitcoin SG
      • Buy Bitcoin UAE
      • Buy Bitcoin UK
      • Buy Bitcoin ZA
      • Crypto Exchanges AU
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      • Bitcoin Mining Sites
      • Best Coins to Mine
      • Ethereum Mining
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      • Monero Mining
      • Crypto Marketing
      • Financial PR Agencies
      • ICO Marketing
      • Web3 Marketing
  • Cryptocurrency
      • Buy Crypto
      • Buy Bitcoin
      • Buy BTC with Apple Pay
      • Buy BTC with Credit Card
      • Buy BTC with Bank Wire
      • Buy BTC with eToro
      • Buy BTC with Paypal
      • Buy BTC with Prepaid Card
      • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
      • Shiba Inu Price Prediction
      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
      • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
      • Best Crypto Exchanges
      • Best Altcoin Exchange
      • Best Metaverse Platforms
      • Best Crypto Apps
      • Best DeFi Exchange
      • Best P2P Exchange
      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
      • Best Binance Alternatives
      • Best Coinbase Alternatives
      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
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      • Crypto Credit Cards
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      • Margin Trading Exchanges
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      • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
      • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
      • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
      • How To Buy NFTs
      • Best NFT Apps
      • Best NFT Games
      • Best NFT Giveaways
      • Best NFT Lawyers
      • Best NFT Lottery Sites
      • Best NFT Presales
      • Best NFT Wallets
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      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
      • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
      • NFT News
      • Celebrity Backed NFTs
      • Celebrity NFT Owners
      • Cheapest NFT Projects
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      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
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      • Invest in the Metaverse
      • Best Metaverse Apps
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      • How to Invest in NFTs
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      • NFT Land Projects
      • Best NFTs To Buy
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      • Prime Ape Planet NFTs
      • VeeFriends NFTs
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      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
      • Magic Eden
      • NFT Launchpad
      • NFT Music Platforms
      • OpenSea
      • Rarible
  • Stocks
      • Types of Stocks
      • Best Biotech Stocks
      • Best Bitcoin ETFs
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      • Best Cannabis Stocks
      • Best Cheap Stocks
      • Best DeFi Stocks
      • Best Dividend Stocks
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      • Best Upcoming IPOs
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      • Buy Oil Stocks
      • Buy Stocks on eToro
      • Buy Stocks via Credit Card
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      • Invest in Stocks
      • Invest in NFT Stocks
    • Trading
        • Best Trading Platforms
        • Best Investment Apps
        • Capital.com Review
        • Copy Trading Platforms
        • Demo Accounts for Stocks
        • Day Trading Platforms UK
        • eToro Review
        • eToro Review UK
        • eToro Review ZA
        • How to Day Trade Stocks
        • How to Trade Commodities
        • How to Trade Crypto
        • How to Trade ETFs
        • How to Trade Gold
        • How to Trade NFTs
        • How to Trade Oil
        • Islamic Brokers
        • Low Margin Rate Brokers
        • Paper Trading Platforms
        • XTB Review
        • Best Forex Brokers
        • Best Forex Brokers AU
        • Best Forex Brokers IN
        • Best Forex Brokers UAE
        • Best Forex Brokers UK
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        • Best Stock Brokers ZA
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        • Best Forex Signals
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        • Trading Robots
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        • Bitcode AI Review
        • BitiCodes Review
        • Bitindex Prime Review
        • BitIQ Review
        • Crypto Bank Review
        • Crypto Boom Review
        • Crypto Engine Review
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    Digital & Social⟩Ecommerce

    How to Price an eCommerce Subscription Service

    author imageJay Leonard Last updated: 14 July 2019
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    Close your eyes and picture the ideal customer for your ecommerce business. Do you have a sense of what they look like?

    How old are they? What do they do for a living? What are their interests and hobbies?

    You’re imagining a buyer persona, and it’s not just a thought exercise—it’s an essential tool for making decisions about how to acquire new customers, what to offer them, and how much to charge.

    However, buyer personas are only as useful as their constituent data. Say your buyer persona includes “loves the outdoors.” What does that tell you about how much that customer is willing to pay for your product?

    Another problem that occurs with buyer personas is the failure to keep them updated. Businesses that transition into subscription services often fail to create new buyer personas, despite the fact that a subscription is a completely different product.

    You’re likely to find that customers who are ready and willing to commit to a long-term relationship are either different from your single-purchase customers, or in a different phase of their online shopping journey. In order to create the right messaging, offers, and pricing for these customers, you need to be able to not only map out a buyer persona, but quantify it as well.

    The goal is to know your customers beyond their age, hobbies, and demographics. You need to be able to quantify the expected value of your buyer persona, and build around the value they provide to your business, not just their personal characteristics. These personas need to be founded on verifiable data returned from points of engagement on the customer journey.

    A buyer persona based on a person’s qualities can tell you what they’re like. A quantified buyer persona will tell you how they will act.

    How to Quantify a Buyer Persona

    It can be tempting to think of building buyer personas as being akin to creating character profiles for a story or role-playing game. That might be a fun exercise for the marketing team, but it’s not going to help you make data-driven decisions about things like pricing or product design.

    A quantified buyer persona is based on number crunching, not personality characteristics. The traits you should be interested in are the ones that can be discerned from how the customer interacts with your website—not self-reporting or subjective impressions.

    Consider the difference between these two buyer personas:

    Shirley

    • Young female
    • From Idaho
    • Loves shoes
    • Socially outgoing
    • Dog owner
    • Vegetarian

    Laverne

    • Active Instagram user
    • Most purchased products:
      • Sneakers
      • Socks
    • Least favorite products:
      • Makeup
      • Shoes
    • Average revenue per online purchase: $30
    • Customer acquisition cost: $75
    • Lifetime value of subscription box: $250

    quantified buyer persona vs regular persona

    As a digital marketing team, which type of persona gives you more to work with? The Laverne persona tells you which marketing channel to approach, how much to spend, and which product to try and sell. Now, if you also add additional demographic data on top then you can easily hone in your messaging as well and create a very successful customer journey that ends in high conversion rates.

    Who Should Quantify a Buyer Persona?

    When it comes to putting together a good buyer persona, consider that the whole company will benefit from this endeavor. The interactions and data included in the persona may involve the work of multiple departments. For these reasons, it’s important to pull in a variety of perspectives on what constitutes relevant, quantifiable data; and how best to capture it. Managers, salespeople, designers, developers, and the marketing team all have a role to play in creating the buyer persona:

    • Customer acquisition cost (CAC), the amount of money you spend (on average) to acquire a new customer, is an important metric to base many decisions on.
      • Your marketing department is likely already tracking CAC, ideally along different channels for different types of customers.
    • How much are your customers willing to pay (WTP) and at what point do prices become too high and result in reduced profits?
      • Your team should have that information along with the life time value (LTV) of repeat customers, if you offer a subscription service, or the Average Revenue Per User (ARPU) if you don’t.

    These figures have important interrelationships. The ratio of your LTV to CAC or ARPU to CAC can tell you if you’re spending too much money to acquire new customers. If you’re pricing below the customer’s WTP, and if you have room to adjust your prices higher to bring that ratio back to favorable levels or do you need to reduce operational costs.

    How Quantifying Your Buyer Persona Helps ecommerce subscriptions

    In a nutshell, the objective of a quantified buyer persona is to help you construct your conversion funnel so that customers move smoothly from one level to the next, providing maximum value for your marketing, sales, and retention expenditures along the way.

    Quantified buyer personas can help you identify areas where a one-size-fits-all product is holding you back. If you can pin down their WTP—the price they’re actually comfortable paying up front—you might be able to offer an alternate product that keeps them in your conversion funnel.

    For instance, a business that offers a $99 monthly subscription with a lifetime value of $594 and a 25% churn rate might find itself receiving inquiries from customers who balk at the high initial price. If that same company determines that their quantified buyer persona has a WTP of $49 / month and a prospected Lifetime of 16 months, they might then decide to offer a monthly subscription at that price point, leading to more customers giving them a try and ultimately deciding to stay on long-term.

    By identifying the marketing channel that’s leading most of these quantified buyer personas to your site, you can choose to emphasize the products they’re most likely to be interested in purchasing.

    Pricing is an especially big challenge for retailers that offer subscription boxes or similar services It’s less straightforward than assigning a fixed price tag to an individual product, and there are many theories and strategies for optimizing the price points for a subscription-based service. A quantified buyer persona won’t necessarily tell you which method to go with, but they will provide a baseline of reliable data to inform your decisions.

    How Dollar Shave Club Recovered Lost Online Revenue Discover how Dollar Shave Club prevented customer journey hijacking and increased conversion rates

    Access the Case Study

    How Do I Discover My Quantified Buyer Personas?

    An easy place to start is to look closely at your most engaged customers. They’re the ones who stick with your brand by signing up for a newsletter, make repeat purchases, leave great product reviews, join your subscription box, and even championing your brand among their friends on social media. They represent a sort of “ideal” customer for you so you’d like to attract more like them, right?

    Understand these customers by looking for common similarities in digital behavior. The ideal persona should be based on a goal you set for it. For example, if you imagine your ideal buyer persona to be an advocate for your brand and fundamental to its growth then perhaps you should create a buyer persona based on users that engage your content on social media.

    Your Instagram followers could be the perfect fit for your brand so building a persona around users that like your content, comment on it, go to your website, join your subscription box program, and then upload their own photos of themselves with your products as they are delivered. Imagine if you could create a buyer persona out of this audience and successfully target it.

    Now, I’m not saying that demographic data is useless. Actually, once you have your quantified persona data you can enrich it with demographic data that can better help you understand the audience. However, it’s important to start with the quantified data and then enrich with demographic data not the other way around. The next step is to connect your new persona with your products:

    1. Which products are of the most interest to the persona?
    2. Which marketing channels were effective in leading them to your site?
    3. Most importantly, hone in on the three key numbers that help you determine if you’re providing the right value for the price you’re charging: WTP, CAC, and LTV.
      1. How much does it cost to bring in a customer that answers all these criteria?
      2. How much would they be willing to pay per month?
      3. How long do they typically subscribe for?
      4. What is their overall life time value?

    Getting this data may take time but it shouldn’t be difficult. These are all metrics any eCommerce subscription service should be tracking. Internally, you can seek out reporting and analytics from various customer-facing departments, such as competitor data, market research, and feedback from customer support. You should also go to the source by soliciting information directly from your customers via surveys, interviews, and comment forms.

    When you have built a quantified buyer persona that addresses the subscription boxes they want, the price they’re willing to pay, and the cost of turning them into customers; then your teams can have a clear, shared vision of just who it is they’re designing for, who they’re marketing to, and what it is that draws these people to your company instead of your competitors.

    Build It and They Will Come

    Every step in the customer’s journey has the potential to yield useful insights into their motivations. Building the perfect, quantified buyer persona will take time and experimentation as you work to identify the type of buyer that best represents the optimal use of your acquisition and retention budget.

    Study these customers, find their best paths through the conversion funnel, and map them. When you put together customer personas that stand on a foundation of solid, relevant data, you can make sales and marketing decisions based on proven facts about what your customers want and how they interact with your site.

    Stop trying to guess how to translate the personality traits you might find listed on social media or a dating app into actionable business insights. By quantifying your buyer persona, your path to optimizing your SaaS pricing becomes clear, accurate, and profitable.

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      This article originally appeared on Namogoo and has been republished with permission.
    Find out how to syndicate your content with B2C


    author image

    Author: Jay Leonard

    Jay is a UK-based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. Jay has a great deal of hands-on experience in analysing financial markets and performing technical analysis. Jay is currently focusing on the institutional adoption of cryptocurrency and what it means for the future of

    … View full profile ›


    More by this author:
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