There's an important difference between customer service and customer engagement. Find out how and where to implement these practices.
What is the Givego Effect?
Understand how Givego affects a customer's life cycle after purchasing from a brand.
The Givego Effect is a unique phenomenon that highlights a customer’s increased lifetime value (LTV) in correlation with meaningful experiences. Understanding the Givego Effect can provide a new perspective on how to view business, markets, customers, and more.
How does the Givego Effect work?
The most efficient path for meaningful growth is to create a lifelong brand loyalist, earlier. Customers who have a positive experience with a brand are more likely to become repeat purchasers.
The Givego Effect states that customers who buy a product earlier in their customer lifecycle and use Givego are more likely to remain with a brand compared to others. Early adopting customers are able to better understand their products through performance and connection. Accessing the tools they need to utilize their new purchase to its fullest potential.
Customer 1 and Customer 2 both buy standard golf club sets from two different golf companies. Customer 1 opts into Givego’s Performance Plan, while Customer 2 doesn’t. Customer 1 uses their complimentary session to upload a video of their swing to an Expert, who provides feedback and instruction on how to use their new club set.
After continuing a connection with the Expert, Customer 1 is encouraged to buy an alignment stick and repurchases from Company A. The driving factor of this decision to repurchase is "improvement". When customers improve and progress using the product they purchase from you, they come back and buy more things. Customer 2 continues to use their golf clubs on their own without any post-purchase experience provided by Company B.
After several months of connecting on Givego, Customer 1 wants to practice at home in the winter and buys a golf hitting mat and net from Company A. After purchasing more products the customer is rewarded with additional session credits to continue connecting on Givego. Customer 2 doesn’t use their club set or buy any additional products that winter.
In the summer, Customer 1 ordered customizable shafts for two clubs from Company A after progressing in their ability level. They continue becoming a brand loyalist through post-purchase connections. Customer 2 is left disserved by Company B and stops using their product as frequently and fails to repurchase consistently. This failure is driven by the fact that Customer 2 has not improved, and their interest in the sport was not enhanced post-purchase.
In a matter of one year in a customer’s life cycle, one customer buys five products while the other only buys one. Company A has a better customer LTV cycle projection that increases revenue and purchases over time, while Company B fails to provide a post-purchase experience for existing customers and solely focuses on first-time purchases from new customers.
How to take advantage of the Givego Effect?
Focusing on customer experiences early on is a great way to create brand loyalists and repeat purchasers. Meaningful experiences that create brand loyalty make price irrelevant. Givego is the easiest and most impactful way to drive customer loyalty through great experiences.
Whether you opt. into our shopping cart integration, become a premium brand partner, or offer a giveaway. Givego is the best tool for your customers. To learn more about Givego’s impact on customer experience download our full Case Study here.
The Givego Effect Benefits.
- Increased revenue per customer. -- It's been reported that some brands who use Givego have seen a 3X revenue increase per customer once they start using Givego.
- Increase conversion. -- Not only increase revenue per customer but increase conversion in your shopping cart experience. Givego's goal is to increase conversion by up to 10% and reduce abandoned shopping carts.
- Decrease customer service demand. -- With the full Givego Effect brands are able to reduce customer service calls by taking advantage of Givego's community of Experts.