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In this video, I discuss the 4 ways you can increase your profits:
1) get more customers
2) Get your customers spending more
3) Get your customers back spending more often
4) Lower your costs
Okay. I think we’re live now, so, welcome to this next video. So, in this video, we’re going to be talking about the four ways that you can increase your profit. So, the reason this is really important is, it’s really easy in marketing in particular to do a lot of different things that can look like it might be working or moving the needle, but it’s actually not increasing your profit margins, and it’s not putting more money in your back pocket.
And so, this is a little bit of a marketing video slash sort of housekeeping, and sort of I guess a general business video, but these four things, if you have a clear strategy for each one of these, I just know that this can significantly increase the profit in your business. And so, I know there’s probably a lot of other little ways that can increase your profit margins but normally these are the universal four methods to increase profit, and they’re the biggest levers.
And as I said, by having a clear strategy for each one of these, you can start to ensure that when you bring all your time and energy in getting that momentum going in your market, that it’s actually making money on the back end, because there’s nothing worse than going and getting on the path or putting all that time and energy if you can’t by just thinking you’re getting a really good result, but you find yourself just spending more money but not making more cash to put in your back pocket at the end of the day.
So, let’s jump into the four ways to increase your profits. So, the first one is pretty simple, it’s get more customers. So, this is what you’re watching this video is about, this is what marketing is all about, it’s how do you get more people into your business in the first place? How do you get more customers on that front end?
Now, this is the most obvious way, it’s the one that most people focus on, but the thing is with getting more customers, it’s also the hardest and often the most expensive way to increase your profit. So, keep that in mind. But certainly having a clear strategy as to how you’re getting more people. How you’re getting in front of more of your customers and how you can really [inaudible 00:01:46] into business on the front end is first one.
The second one is, how do you get them to spend more per transaction? Okay. This is I guess the old adage of the McDonald’s app, “So, would you like fries with that?” I mean, are you at the point of say, offering your customers an additional service or product that actually increases the bottom line on that transaction? And like in the first sort of maybe two to three days of this as well, so can you offer them something in that first two to three days to increase their transaction of value?
It might be as simple as when you send out the quote or the invoice, just attach an offer to it. If they’ve purchased say, a deck from you, if you’re in a construction space, ’cause that’s who we work with normally, if they’ve purchased a new deck off you, then offer a service where you can sell them the first five tins of decking oil, or you’ll offer to come back and you’ll actually clean and oil that deck for them. Or offer them additional service, you know? Offer them a patio or something that you might otherwise offer in your business.
So, here’s the thing, most businesses forget just to offer another service. You’ve got somebody who is ready to buy from you, who is happy with you, who has chosen to do business with you, and then we forget to ask them, “Would you like to buy more?” And the easiest way to increase your transaction, every transaction, is simply by offering something at the point of sale, because they’re excited, they’re happy, they’ve made the decision to buy you, so, why not offer something? Not everyone will take it up, but a percentage will.
And that leads into number three, and number three is, how do you get them to come back and spend with you more often? Again, you’ve worked really hard to get this customer in the first place. You’ve hopefully offered them something at the point so it’ll increase how much they’ve spent with you then, and then, most businesses just leave them in the wind.
And this is somebody who now knows, likes, and trusts you. I feel they’ve had a really good experience with you as well through the process, and so, it makes sense that they might wanna buy from you again. You may have other services or other products that they may wanna use of yours, so, how are you getting back in front of those customers? How are you continuing that conversation and that dialog with them? And what offers and what sort of potential hooks or I guess things that you’re taking back to them, to ask them whether or not they’d like to use your business again?
So, thinking about that, so, “How do you get more customers? How do you get them to spend more per transaction? And how do you get them back spending more often?” are the first three. Now, number four is, again, it sounds really obvious, but this is easily the most powerful way to increase your profit, and that is, how do you lower your operational costs?
See, most businesses, and particularly in the building and construction game, yeah, especially if you’re a trades person, fly by the seat of their pants when it comes to costs and I know this for a fact that this is the fastest and easiest way to get more money in your back pocket, and that is to manage your costs, and ask me how I know this. I spent years thinking that if I just went out and earned more money and I just got more business, it’ll all take care of itself, but by not taking care of that backend, you just incur more costs as you go, it just becomes kind of vast and loose and you find yourself making more money but having more money go out the backend.
And so, simply by having maybe a weekly meeting or a monthly meeting, where you just sit down and your focus of that one hour is just to completely look at your cost, analyze what you’ve spent money on, and just have a look at what you can cull in the month maybe before, because I know when we sit down to do this, every single month, we think we’ve got our cost handled but every single month, we seem to accrue new costs or we look at costs that we’ve been carrying for the last sort of six months, 12 months, and realize they’re now redundant. We can actually cut them out, and simply by doing that, you’re just increasingly pushing that cost down, which is increasing your profit margins.
So, there are the four ways that you can increase your profit within your business. So, I do advocate that you have one clear strategy at least for each one of the profit quadrants, and by doing that, I promise you that over time, you’ll slowly see that you’re getting a much more sort of reward for your efforts. So, I hope you enjoyed this video, and I’ll see you in the next video where we’re gonna talk about finding your right customer or your perfect avatar, and also how to identify and sort of how to beat your market, so, I’ll see you in the next video. Thanks for watching.
In this video, I discuss identifying your perfect target customer and creating a client avatar.
What we’re going to go through in this video is how to find your perfect customers, how to identify who they are, and then how to figure out how to, I guess, find those customers in the marketplace. Going back to the first video that I created this morning about psychology and math. This is really about the psychology side of things, trying to understand firstly who it is that you’re trying to sell your product to, and how they think, act and feel sort of thing. Look, the best way that we’ve ever found to do this, and I think every marketer out there will agree, is to create a customer avatar, or call it a [inaudible 00:00:35]. Whatever you want to call it. Essentially what it is, it’s, I guess, a fictitious character that you’ve made up based on customers that you know and you like, and what you know about them, and what you think you know about your perfect customers as well.
Because when it comes to marketing, clarity is king, and knowing who you’re talking to at any given time, how they talk, what resonates with that particular person, is the key to cutting through the clutter and making your marketing work, in particular on the copywriting front. Sorry. So, yeah, the fastest and easiest way to do this is by creating an avatar. I think that once you do go through this process, initially you might find it a little bit like a ho-hum, but once you do start to really dial in on your avatar, marketing gets exciting. Because it stops the confusion around what you should be saying and where you should be saying it. It helps you to really dial in on your message. It helps you put together your offers, your price point, your everything from your color scheme … because you know who you’re trying to appeal to.
Because most businesses out there don’t need to sell to everybody. Most businesses, they capture a certain amount of sales per month, per week. When you sit down and really go, “Well, I only need 100 sales a month,” or “I only need 20 sales a week,” whatever it may be, then why not try and get 20 of the best customers possible? Because let’s be honest, if you only need 20 customers, let’s try and get customers that you like to work with. That pay you on time, pay you well, don’t ask questions, and they refer you to other people and say nice things about you. Because on the other end of that scale, the pain in the arse customers, the ones who screw you down on price, are a pain to deal with. It doesn’t matter how much you bend your back to deliver the product for them, they’ve always got something negative to say. Then they run around and [inaudible 00:02:14] you regardless of the job that you’ve done. We all have experience with both of these types of customers.
Here’s the thing. It costs you just as much time, effort, energy, and most importantly money, to acquire one of those good customers, your perfect customer, as it does a shitty customer. So if you’re going to put time and energy into your marketing, why not go out there and try and find more of the best customers? So the big sort of kickback that I get on this from clients when I first break this to them is, “If I target this one type of person, won’t I miss all these other people, and I’m just closing myself off to business?”
Here’s the thing. I’ll just draw something quickly on the board to show you. Yes, you will be closing yourself off to the business you don’t want, and here’s the thing, think of it like a dartboard. Think of it like this kind of bullseye, I should say. In the middle there, you’ve got your tens. They’re your perfect customers. They’re the ones we really want more of. Then you’ve got your nines, your eights. Think of this scale all the way up to number one, and number ones being the worst customers. If we’re targeting number tens, we might miss the market a little bit. We might get, yeah, a few nines, a few eights, and maybe a few sevens. But they’re still going to be quite good customers. What we’re doing is we’re trying to get more of those people in the center of that bullseye, the good customers. And less of those shitty customers out there. We want the shitty customers to go to our competition. Let them get bogged down and lose money on poor customers, because I guess getting the right customer can often make or break most businesses out there.
How we do this is we go through and we create a customer avatar. Now, you can have more than one avatar, but what I do sort of stress is that I do believe that no customers are equal. So again, the difference between a ten and a nine, it might simply be talking to the male avatar as opposed to the female avatar or vice-versa. Or it might be the difference between talking to a 35-year-old as opposed to a 30-year-old. So it can be quite a fine art, but the idea is you still want to make sure that you characterize your avatars. The reason being is that whenever you sit down to creating marketing, you really want to have a clear idea of, “Who am I trying to write this for? Who am I trying to appeal to? Who am I trying to attract …” sorry I lost my word there, “… with this?”
I’m just going to open my screen up here and go through a list of things which you can’t see obviously, but you can take a pad and pen out. You can write these down. Here’s the thing. I’ve seen avatars that are a mile long. I’ve seen people go … and I’ve done these myself … gone to the nth degree with this. I’ve seen really simple formats as well. There are people out there who just advocate, just when you go to write something, think about your favorite customers. All of this can work. This is where we found is the middle ground for us. And that is just by understanding a few key things about your customers.
The first things you need to go through are kind of the basics. What’s their sex? Are they male or female? Because we all know that males and females talk, think and act differently. How old are they? Don’t put between 40 and 50. Put a specific age, because a 40-year-old and a 55-year-old [inaudible 00:05:19] stage in their life. They talk and think differently, again. There’s going to be a lot of that through this. It’s just really trying to dial in. Again, it’s not to say that if you create an avatar that’s 55, you’re not going to … Of course you’re still probably going to appeal to 50-year-olds and 45-year-olds. But it’s about just getting really granular with what you’re saying and who you’re targeting. What’s their job and what’s their role within that job? Are they a CEO? Are they a manager? Are they self-employed, are they a worker? And what sort of role? Are they a lawyer, are they a doctor, or are they a carpenter?
Understanding these things, yeah, can really help you understand how these people think and act, and the way that they’re sort of taking information. Because when it comes to copywriting particularly, it’s your job as a marketer not to talk how you talk, but to talk how your market talks. To use language and dialogue that they resonate with, because at the end of the day they’re the ones who need to choose you, not the other way around. What’s your annual income? Again, we want to make sure that we’re playing in the right pond here, or fishing in the right pond, and that they can afford your product or service. Do they have kids? If yes, how many kids and what age? Because again, people with newborns as opposed to elderly children go through completely different challenges in their life. Their education level, where did they go to university? Did they drop out of school? Are they self-educated? Again, these just give us little clues into how we might talk to this avatar.
Then we want to go through … and just the next section just breaks down their lifestyle elements, and the things that they might be interested in. So the first one is lifestyle. What I like to do here is just try and think of the average day in the life of your avatar, and just map it out from the moment that they wake up, he or she wakes up. What’s the first thing they do, second thing they do, third thing, all the way down to when they go to bed? So that you can start to, I guess, walk a mile in their shoes. Then you look at their health and fitness. Are they into anything in the health and fitness space. Or do they go to the gym? Do they have particular beliefs around diet and nutrition? Anything of that nature.
And then sports and hobbies the next ones. I say sport and hobbies, like do they follow sporting teams or do they have any extracurricular activities that they like to do, whether it be … It can be as simple as catching up with friends for a glass of wine, or going out to dinner, these things. Then the next two are really important, which I really like. Is who are their heroes and who are their villains? The fastest way to build rapport with somebody is to be a friend of their friend or to be an enemy of their enemy. And also understanding who they look up to and who they look down upon will help you to understand what they stand for as a person. So who are the people? It could be celebrities, it could be family members, it could be people in their life, or it could be characteristics of certain people. So it could be a hero, it could be somebody who values being on time, so to speak.
This is really important because if you think about the recent US election. If you’re a Donald Trump fan versus a Hilary Clinton fan, then you were a completely different person. By understanding what someone might like or dislike about another person helps you to really understand how to craft a message that they would instantly resonate with. That’s a really powerful one.
The next one, the next section, is where they hang out. Where we can go and find information about them that we can leverage. Because if we know that they like certain brands or read certain publications, hang out on certain websites, what we can do is we can go and look at that marketing and find out what is it that we can [inaudible 00:08:35] across all of those platforms, and what can we use in our marketing to help resonate. First you look at publications. Are there any magazines that they read? Websites, what websites do they hang out? Not just social media platforms, but are there dedicated sites that they might go to and just find their information about a certain topic? Are there conferences or events that they attend? They can be obviously marketing conferences, or they can be gallery openings, [inaudible 00:08:57], horse-racing, whatever it might be.
Then the next one is brands. What brands do they already know, like and trust? What do they resonate with? Whether it’s the type of car they drive, whether it’s the type of clothes they wear. Because if we know that they resonate with these brands already, we can again go and copy what some of those brands are doing, into our marketing. So that when they find our business, it feels congruent to what they already know, like and trust. Last one is just memberships. [inaudible 00:09:24] or anything of that nature, or are they part of any sporting clubs and these things?
Again, we just try and find as much information that we can use, or as much bullets that we can fire, in our marketing sort of thing. The cool thing about a lot of these platforms, like the websites and, yeah, the magazines, they spend hundreds of thousands if not millions, depending on the platform, on their market research. And they also advertise. It’s easy to go to them and ask for their media kit where they’ll actually detail a lot of their market research in there, because they’re trying to sell you on advertising space on those platforms, that you can then just take and replicate, and utilize in your own marketing.
Then the last one is the psychology of it all. What are their fears, their frustrations, their needs, their wants and desires? This can take a little bit of time to break down, and again you’re trying to get inside the mind of your customer here, and it’s not what they’ve told you. We’re trying to get into that next level, the deep, dark secrets, I guess. The conversation they’re having inside their head that they’re not necessarily telling you about or others about. So their fears. What is their big fear? The big fear that keeps them up at night, that your product or service solves. What are the frustrations they have around your product or service? What are the needs, like what do they absolutely need in order to do business with you? What do they really want? Nobody really buys anything on sort of, I guess, a needs basis. It’s really about the want. What do they want to get out of it? The needs [inaudible 00:10:50] more about what do they need to facilitate it, and then the want, just what they’re really thinking about.
And then their desires. What’s the big emotion attached to it? What’s the big emotions that they get when they use your product or service, or what’s the feeling they get after the sale’s made? Because all marketing really is is trying to take someone from where they are now to where they want to be. If you understand, I guess, the bridge or the psychological gap in between there, then it helps you really sit down and craft a marketing message. So what we like to do is once we create these avatars, we like to give them a name. So it might be Motivated Mary, Stressed-Out Stan. Try and give them a name, and then a word that kind of encapsulates what that person’s about. The reason for this is when you sit down to write any kind of marketing material, it’s really good to be able to sit down and go, “Okay, who am I writing this for? Okay, great, I’m writing it for Motivated Mary. I know how she thinks, [inaudible 00:11:40].” It just helps you alleviate a lot of that double-guessing and that uncertainty when it comes to creating your marketing campaign.
There you go. Hope you like this video. Honestly, sit down and start creating your avatars. This is not something that happens overnight. It’ll probably take a month for you to get your first avatar dialed in. But I can tell you now there’s nothing more rewarding than seeing your avatar, as you walk into your business, purchase your products and services. I think this is the only real test of whether or not your marketing is working effectively. Whether you can get the type of customer you want to walk into your product [inaudible 00:12:15]. I hope you’ve enjoyed this video. In the next video we’re going to talk about the market, because effectively what your market is, it’s your customers plus your competition. That equals your market. In the next video, we’re going to talk about your competition and what you need to do to, I guess, effectively understand it and to beat your competition so that you can win more of your avatars. Thanks for watching, and I’ll see you in the next video.
In this video, I discuss how a simple S.W.O.T analysis is the fastest and easiest way to beat your competition.
-Beat your competitors. How do you understand what they’re doing? How do you position yourself so that you are the obvious choice in your customers eyes?
There’s a lot of ways you can do this and just Google the internet. There’s a thousand templates and different sort of models. Some are incredibly in-depth. It requires a lot of hard work.
What I found works best is a simple SWOT analysis. Now I know you’re rolling your eyes at the fact that I just said SWOT analysis but in this case it works really effectively ’cause you can do it really quickly.
All we’re doing is we sit down with the website open, our Facebook page open, and then we open the competitors website, and we open their Facebook. We just simply sit down and we ask ourselves these four questions.
The strengths. What do we do better? What is is obvious that we do better? I mean, ’cause when you go into your … I guess, comparing you to someone else, you can start to get really [inaudible 00:00:49] go into too much detail but the customers might not pick up on that. Think about, and look at, the really obvious stuff. What is obvious that you do better?
Number two is weaknesses. What is it that’s obvious that they do better? What is it that they offer that’s better than you? That you’re offering?
Then, number two, you’re simply taking those two elements and then looking at the opportunities. If you know what you do better, where can you maximize the opportunities to beat your competition? Where can you really drive it home, that you do that better and make yourself and position yourself as the obvious choice in your customers eyes.
Number four is your threats. You know, think about it like this, if your customers are sitting around doing the same thing, which they probably are, what are they saying about how they can beat you?
Because, ultimately, by understanding your competition, what you do better, what they do better, and where you sit in the marketplace, enables you to create marking campaigns around your strengths. To sort of minimize the weaknesses where you can or eliminate them from your business completely. Certainly by understanding your competition it just gives you a huge competitive advantage when it comes to knowing when your business, as far as getting more leads but closing more sales as well.
There you go. I hope this video was helpful and I’ll see you in the next video where we’re going to talk about your big three, or creating your unique three.
In this video, I discuss how to find your big three benefits, no other competitor can match you on.
Okay, so hopefully your still with us or joining us for the first time in this video. We’re just doing a series of videos around the marketing fundamentals. I’ve just had to take a time out and go grab a coffee.
If you’re wondering what that noise is every now and then … Right now. My office is … I work from home, it’s at the back of the house here. It’s the planes that fly over from time to time. We live down here in Currumbin. It’s a beautiful place but unfortunately we do get a few planes from time to time, when the winds are flying a certain direction. But anyway. That’s neither here nor there.
Let’s jump into finding your big three. This is something I’m really excited about because understanding this really helps you on so many levels. The first question I ever ask any business owners, why should I do business with you? It staggers me, the response I get every single time is, uh, uh, uh, um because … Their brains are just absolutely peaking. It’s like, how do you not know how to answer the most fundamental question that every single customer that ever meets you, is asking themselves. That’s the only question. Their asking why should I do business with you?
If you as a business owner aren’t really clear on that, then what happens is you end up just throwing up all this just junk. “We’re good, we’re quality, we provide good customer service. You know, we’re trustworthy.” The problem is every single business is saying that. It’s funny, every single business owner that I sit in front of, will sit and talk about their competition like, “We’re the good ones, they’re the dodgy ones. There’s these ones who are doing this and that.” The sad story is, or the sad fact is, everyone of those businesses are sitting there also saying the exact same thing.
That’s humans. None of us actually really think that we’re shit. We all think we’re pretty fucking good. Therefore we tell everyone we’re good. We’re doing good thing. We all go into business with intentions that we’re really doing good stuff.
The reality is, the ho-hum stuff of we’re quality, we provide good service, we’re trustworthy. Yeah, sure you need that in your marketing. You don’t want to miss that but it’s not gonna move the needle.
What we’re gonna try and dive into are what are the big three advantages of doing business with you? By coming up with these big three things, you then can create a compelling USP, or unique selling proposition, or unique buying advantage, whatever you want to call it. Basically a slogan or a sentence that could quickly, I guess, articulate to your customers what it is you do and why they should do business with you.
Sit down and take a, I guess, pad and pen out. Start writing down the things you do really well. Then go as deep as you can. Then really think about what your customers expect and then go, “Okay, do they care about this? Does this help them?” Yeah. Remember the sort of … What’s in it for me concept. That’s what customers care about.
The reason that we come up with three is because the goal here is to create three really compelling benefits. Now these have to be your best three because think of it like this way, if you’ve got the chance to sell somebody what it is you do you want to give them your best three reasons to chose you. People don’t have time to go into the detail. They want to know up front what’s in it for them, what you can do for them, and why they should choose you. Think about the best three.
The goal here’s to create three that no competitor can match you on all three. Yeah, some of your competitors might be able to match you on one or two. Another competitor might be able to match you on this one and that one but no competitor should be able to match you on all three. Then what you … By doing that you’ve created yourself a unique selling proposition because you’ve given them a unique advantage, or a reason to choose you because you do this, you do this, and you also do that.
When they’re comparing you … As I said in the last video, they’re always comparing you to the competition. Don’t be a fool and think they’re not. You’re giving them a valid reason to go, “Okay. They do this, they do that, and they’re also offering this.”
Whether it be through specific offers, your guarantees, whatever it might be. What is it that separates you and go for the most powerful three. We’re gonna talk about some of those things in the next video. In fact, I think we’re gonna talk about guarantees in the next videos. That’s certainly one I encourage most is having those unique three because it’s an easy way to out position your competition.
I hope you enjoyed this video. I will see you in the next video in a few minutes. For … We’re gonna talk about guarantees. Thanks for watching.
In this video, I discuss why having a guarantee is not as scary as you may think and why it will increase your sales.
I know this is something that … It scares business owners to begin with because for whatever reason we go straight to, “If I offer a guarantee then everybody’s gonna be sort of calling me on it and I’m gonna just go broke overnight.” Now, that’s not the case at all. In fact, a guarantee should never put you on the hook in that matter. A guarantee should just allay the fears of your customers.
Generally you’re getting something in return for that guarantee also. Be it you’re getting the order, be it you’re getting time, be it you’re getting money sort of thing. It’s never just a one-way street with a guarantee.
Now, if you don’t have a guarantee you can still be successful in marketing but I promise you a guarantee will help you close more business. It will help you win, or generate, more leads on the front end because what you’re doing with a guarantee is you’re effectively looking at what’s the worst case scenario for a customer? Okay?
‘Cause a customer’s really trying to evaluate, “If I buy this product, what do I get and what can go wrong?” Let’s say they’re going, “Okay, this is what I get. Okay. Great. That’s easy. But what if it goes wrong?” Then if you put a guarantee in place that goes … Tells them that, okay if it does go wrong this is what’s gonna happen and this is what you’re gonna get out of it. You’re effectively turning the big negative in the whole decision making process, into a positive.
Because if they go, “Okay I can get this or, worst case scenario, this is gonna happen but I don’t mind because they’re actually gonna give me this in that event anyway.” Then what it enables … It enables the customers to immediately trust you and make the decision to choose you, when they might not know you that well. Because you gotta remember a lot of customers are trying to make a decision on whether to choose you when they don’t really know you that well.
We need to sort of remove the risk where we can. You don’t have to be giving crazy double your money back guarantees or anything like that. You do need to put it in writing upfront as to what you will do in the event of something going wrong.
When I sit down with most businesses and I first say, “We need to offer a guarantee.” They go, “No, no, no. No, that’s too scary.” Then I ask the question, “Okay. If you fail to deliver your product or service, and it’s your fault, what do you do? If you stuff up the process at any point.” Without a beat they all say, “Look if something goes wrong we’ll fix and repair it for free until the customer’s completely happy or if the product is not right or faulty we’ll replace it for free no questions asked.”
Most businesses are offering a guarantee but the thing is they’re not telling people about it upfront. They’re on the hook for the risk of the guarantee but because they’re not telling people upfront, they’re not getting any of the benefit. Does that make sense?
By telling people, in that event, and formatting it in the form of a guarantee it enable people to trust you upfront. You’ll get more business on the front end when you’re not really changing what you’re doing on the back end at all.
For instance if, you know … If, in those two examples, the guarantees could be quite simple. If you’re not the happy with the quality of our product, we’ll fix and repair it for free until you are. You know, guaranteed. Or if the products not exactly what you ordered, then we’ll replace it for free no questions asked.
Because, at the end of the day, everyone of you watching this livestream are an honest business owner who actually do these things anyway. By putting it into a guarantee, and structuring it in a way that you can build trust on the front end, it’ll enable you to win more business, reverse the risk, and knowing that you’ve got the back end and you actually do deliver on your products anyway. It’ll be very rarely that you’ll actually get called on your guarantee.
There you go. Think about what you can do to protect your guarantee. Think about where you can use them strategically to overcome obstacles in the sales process as well. You’ll convert more leads and you’ll obviously convert more of those into sales as well. Yeah. Start thinking about your guarantee.
I hope this video was helpful. We’ll see you in the next video where we’re going to be talking about social proof and how to use social proof to maximize the trust in your marketing.
I’ll see you in the next video.
In this video, I discuss why social proof is the fastest way to build trust with your prospects and how to best use it.
All right, we’re pushing through here. So this video we’re talking about social proof. Again, this is something that most businesses absolutely miss the trick on and it’s so powerful that … is so powerful and it’s free and easy to do as well and [inaudible 00:00:19] people to create. But you do need to have a focus on it and most businesses out that they’re just sort of feel like they don’t even have the either time or they don’t have the understanding or they don’t know how to this. But when you consider the number one barrier to doing business with you is trust. That’s the number one bus so far. He’s on I trust you, why should I trust you and social proof, say it properly, maybe, social proof is easily the fastest way to build trust because it’s effectively third party people telling them that you can do a good job.
And so what are some of the elements of social proof they can use? The first one is really obvious. It’s your five star reviews. And at the end of this video, I’ll give you a little formula that we use to build more five star reviews that you can actually use in your business today. But we live in a world that’s obsessed by reviews. so effective … again asking your customers to leave nice reviews, especially when you know they’ve been happy with your service, be it on Facebook, Google, if you’re in the building construction industry, there are hundreds of platforms that you can sign up to that will enable your customers to leave reviews. So it’s really important that you try and build those five star reviews and all. Yeah. Good things being said about you and the other one that flows into those testimonials, testimonials, and case studies, asking your customers.
And more often than not it’s just a case of asking. We feel too embarrassed to ask customers if they would give us their feedback. And again, I’ll tell you at the end how we do this which might, I guess make this process a bit easier, but written testimonials are great, especially if they’re on third party platforms. But video testimonials are the most powerful, cause obviously video testimonials can’t really be faked. Case studies are another one. So simply documenting the process and the benefits that another customer has received from using your product or service is a great way of helping the customer see what you’re doing and build trust. A community is one that people miss. So yeah, I don’t buy into getting hundreds of followers on any of the social media platforms. There’s no real ROI value on that other than social proof.
For instance, nice people will find their way to your Facebook page at some point. So if you’ve got like 8, 70 likes versus somebody who’s got 2000 likes, it’s a little social indicator there that more people have liked this product. I don’t advocate going out and buying likes, that’s detrimental to all of your marketing. So don’t buy likes. But third party partners is another one. So third partners are, this is what I call trust by association. So if you work, if you’re in the construction space and you work with some big brands and you use their products or services and they trust you with their business, then put their badges on your website and tell people that you work with these brands and that you’re trusted by these big brands. Because whilst they might not be familiar with you, if they’re familiar these other products or brands that you’re associated with.
Then it builds trust by association. So that’s another small trust badge that you can use there. And the other one is statistics, statistics and data. So basically you’re telling them how long you’ve been in business, how many jobs you’ve completed, is there any industry data or statistics that really backs up what you’re about and what you’re saying. Using all of these things will just help you create more trust with that initial contact. Because I promise you now, the first question people are asking, do you have the solution to my problem? So do you have the product or service that I need? The very next one is do I trust you? So if you want to make your marketing work harder, you should never put out a piece of marketing that doesn’t have some kind of social proof or trust badge or trust element right there next to it.
Yeah. Every web page should have some kind of trust element. Every bit of content that you send out, should have some trust element attached to it. Get it on your invoices, whatever it may be, you just cannot put enough social proof out there because what it does, it really positions a clients mindset. It alleviates all that stress that goes with having to make a buying decision here, am I choosing the right person. And so by building social proof and using it more to the point, so most people tuck their testimonials away on a testimonials page, it’s buried under three sub headings on their website and they really make the customers work hard for that. Whereas we want to bring to the forefront, we want to make sure they can see it everywhere. And so really quickly, the strategy that we find works really well for getting more reviews and testimonials is instead of going to your customers and asking for a review, because when you ask for a review, it’s kind of a personal thing and people get a little bit guarded.
Even if they’re happy with the service, they get a little bit guarded when it’s you approaching them, but breaking that down and going … make the first step, ask them for feedback. So put a few questions together or just send an email out to them and ask them for their opinion on how you did. Yeah, because by asking for feedback, you’re elevating their opinion above yours and people are more likely to want to do them, help you out. So ask them for feedback. If the feedback comes in positive, then just take that feedback. And then in a generally pretty good testimonial ask them if you can use that feedback as a testimonial throughout your marketing, if they say yes, then go back to them and say, look, it would mean the world to us if you could leave us a five star review on Facebook and Google, this is why it’s important. Always explain why it’s important for a five star review, tell them to leave a five star review and make them understand that you’re not being rude by asking you for five stars.
It’s just the way that these platforms work, it hurts your overall score if you get anything less than a five star. So if you were happy leave a five star review, and we love the word five star because there’s nothing more frustrating than somebody leaving a glowing review and then having a three star, or a four star, which hurts your overall ratings because see most people just go into these things with the mindset of nobody’s perfect. So they never leave five stars.
So you need to explain to them why the five star is so important in a way that they can understand so that they will then be able to go, okay, that makes sense. I’ll give you the five star review, I’ll say something nice. So there you go, so social proof is one of the most powerful elements to marketing and go away right now and look at all your marketing and just see where you’re using it and just start to look at where you think you can start to implement more social proof, to back up what you’re saying, to show people that you are the trusted authority in your space. And I promise you’ll convert more business and you’ll make more sales from it. So I hope you’ve enjoyed this video and we’ll see you in the next one.
In this video, I discuss why offers are a critical part of your marketing and how to use them to manage cash flow.
This video, we’re live now on YouTube and Facebook. In this video we’re talking about offers and why they’re so important to your marketing. Look, I always use the analogy that without an offer, your marketing is effectively like a soldier going to war without a gun. He can be the most highly trained soldier, really fit, have all the sort of knowledge and everything that he needs, but he doesn’t have the weapon. He doesn’t have any bullets to fire. So, what you’re gunning with in the marketing world are offers.
The reason offers work really well is because offers enable you to say something unique in the marketplace, and they enable you to bring someone’s buying decision forward, because with an offer, you always attach scarcity to it. So, it’s a limited amount of products or it’s a limited time. That FOMO or fear of missing out can drive a disproportionate amount of sales into your business at any given time. That’s why I say that offers are really like your bullets, and so you need to have them to fire.
Offers can help increase your cashflow, can help you overcome any sort of costs that might arise. If you’ve got proven offers that you know, hopefully over time you build a war chest of different offers that when you run this offer, you know that it produces this result. Let’s say I’ve got offer number one which is a package deal. I know that if I run this in the marketplace, if I spend $1,000 on ads for that offer in that week, it’s going to drive X amount of sales in my business if I’m going to make more profit for that period. So, it enabled you to control your deal flow and your cash flow in your business, because you have what we call a push button influence.
Now, the thing is with offers, they need to be unique either to you or the industry. If you’re going out there and just copying what your competition are doing, then it’s not a unique offer. There’s nothing compelling about that offer. So, you need to come up with fresh ideas that they haven’t seen before. Also, your offer has to be something that’s related or makes sense to your consumer. If you’re just offering, “Buy this and get this free widget,” but the widget has no correlation or really doesn’t add value to either the product they’re buying or the avatars life, then you’re missing the mark there as well.
So, sitting down and just getting a having a bit of fun with this, coming up with ideas and going to the extreme, because offers just come down to math. If you can give away a free holiday with a purchase and the math works, then do it. If you know that you’re going to make the money on the backend then do it. Have a little bit of fun with this, stretch yourself when it comes to offers. What can you add as a value add? How can you package your deals?
Your discounts are the last thing that we look at, because discounts just cheapen your product and they obviously hurt your bottom line. Plus, people can get addicted to discounts and expect that, whereas they don’t seem to get addicted to gree offers or buy this, get that free sort of thing. You can have flash sales or you can have regular sales, yearly sales sort of thing, like end of financial year sale, boxing day sale is a big one that comes to mind, sort of thing. Yeah, sales that people can look forward to and build up a bit of excitement around.
Now, the thing is with creating any sort of compelling offer, is not only does it have to be unique and it has to actually add value, it has to add value. I have to say that again. It has to add value. You can’t add on just a ho hum product that you haven’t put any thought into and expect your customers to get excited. Even if you’ve got a small budget, you can just say that I can only spend $30 per customer on my widget that I’m going to give away, it’s the difference … we’ve all done those … I think they’re called Christmas Kringles or whatever it is, where you draw a name out and you’ve got $20 budget where you’ve got to go and spend on someone.
You’ve got two types of people. You’ve got me, who will just go out and buy whatever the first thing that I see in front of me, bloody socks or something shit that no one’s going to like, or you’ve got the other person, who’s probably like my wife, who goes and puts a lot of thought into it, who comes up and spends that $20 on something that provides massive value because they’ve thought about the person they’re giving the gift to and they want them to feel good.
See, your job as a business owner is to not be like me. Be like my wife, and think about the gift that you’re going to give away. Make it something that when they see it they go, “Wow. That was really thoughtful. I really value what that add on is,” or what that gift is that you’re giving away, in this instance.
Now, the last thing is, when it comes to offers … actually, not the last thing, I’ve got another thing I will touch on, but the next thing is, an offer or a sale must have a story attached to it. Okay? You can’t run an offer or you can’t run a sale without telling the people why you’re doing that, and coming up with a story behind it. If you just say, “Hey, we’re giving you 50% off our products for this week only,” their thought is, “Well, hang on. Are you just ripping me off normally? Why is it 50% off today?”
So, we’re coming up with a story, whether it be end of financial sale or silly Billy in the office, they double ordered our products this month and now we’ve got nowhere to store them so we’ve got to sell half of our products at 50% off just to clear the space, but it’s while stocks last, sort of thing. By coming up with a story like that, it enables you to have the person, or have your prospects buy into that. That, combined with the most powerful thing about offers, which is scarcity and that fear of missing out because every offer runs for either a time period or the select number of items that they can buy in that time.
What you’ll do is you’ll just drive a disproportionate amount of sales, because what offers do is they pull sales from your competitors at that given time, because at any given time, let’s say there’s 100 people in the marketplace looking for your product or service. Without running offers, you’re going to get a portion of that. Let’s say that your slice is 30% of that. That means 70% of the other business is going to your competitors for whatever reason. But when you have a compelling offer, when you attach scarcity, when you attach urgency to it, what you can do is out of the 100 people that are in the marketplace at that given time, if you are already getting 30, you’ve run the offer, now you get a disproportionate amount of those other people, because when they see your offer, you’ve given them a logical choice to choose you over your competition because most customers are just looking for a reason to choose a company because they don’t actually care about the company that much. They don’t know that much about the businesses that they’re buying from.
So, by you giving them a reason to go, “I want this product. It seems to be the same as that product but they’re giving me this.” I’ve seen this work on such a small scale where something as simple as a $30 widget or a $10 widget can push the needle over to your favor and you can get a disproportionate amount of sales. So, there you go. Sit down, start brainstorming all the types of offers that you can play around with, what can you attach to your products, and then start thinking about how you’re going to offer them and how you’re going to tell the story about what you’re giving away to your marketplace. I promise you you’ll have a way to increase your sales and control your deal flow through your marketing with push button influence.
Hope you enjoyed this video and I’ll see you in the next one shortly.
In this video, I discuss how to use your F.A.Q’s page to call out and overcome your prospects biggest objections.
Hi, we’re in the homestretch now. So a few more videos in this sequence of marketing fundamentals we’ll call it. So why don’t your customers do business with you? This is one of the most critical things with marketing, understanding your customers’ objections to doing business with you. And the best way to do this or the best way to format this is thinking of it in your FAQ. Every website has an FAQ section, but most people treat it like this ho hum affair. And they put out a bunch of questions that, let’s be honest, no one ever asks. And they got answers there that are just pointless and they’re doing it just to fill space. Whereas if we look at it our frequently asked questions as one of the big objections to sale, see, every customer has objections to using you, whether it be they don’t trust you, they don’t trust your product, they don’t trust that you will follow through if the product doesn’t work. What happens if it doesn’t work? They sort of things.
And what I mean by the big objections, these are the dark objections that they’re saying inside their own head, but they’re not ever going to articulate to yourself. And so as a business owner, sit down and really think about what are the big objections? Again, not the ones that they’re going to ask you to your face, because those are the ones that don’t really move the needle. With marketing, we have the ability to go deeper, to really understand what their big frustrations, their big objections are, their big fears are, and then we get to answer those within our marketing copy.
And think of it this way. Let’s say the customer comes in and they’ve got seven objections they’re thinking about it, but they’re not telling you about. If your marketing, if your sales presentation just automatically understands what they are and you answer those objections logically, then you give them no choice but to choose you and do business with you.
So I think it was Frank Kern that said that you don’t have to be a great copywriter. You just need to answer all of their objections. You just need to help them make the decision to choose you as a business. And so sit down and start brainstorming this one and you try and dig as deep as you can, because again, it’s not always the conscious brain driving the client’s decision. There’s this deep dark underbelly of the subconscious brain which has all their bias and all their opinions or their previous experience with people like you or industries like you or similar to you that they’re pulling on. It’s all these objections are there and it’s our job to understand them. And then to overcome them.
So what I suggest you do is you write down the key objections in the form of a question. And then you just come up with a logical, conversational based answer. And this will help you not only in your marketing, but it should help you in your sales as well. Because these are the objections that will come up through the sales approach. So just like when we’re talking about the big three as to why I should do business with you, you should be able to answer your objections like that. Off the cuff, you should have an in the canned response that you know when somebody is worried about this, this is how you allay those fears and you just help bring them closer to the point of sale.
So sit down and write a list of your biggest three, biggest objections and go, it can be a few or they can be a lot. It really depends on your industry and your market. And then you’ll find yourself understanding your avatar even more and you’ll be able to write even more compelling copywriting and marketing [inaudible 00:03:04].
So I hope you’ve enjoyed this video. I think we’ve got one video, maybe two left. And the next one we’re talking about lifetime value of a customer and what that means. So we can [inaudible 00:03:12] things again now, but I’ll see you in the next live video. Thanks for watching.
In this video, I breakdown why your knowing your average customer lifetime value can make all the difference to your marketing success.
What is the lifetime value, I should say the average lifetime value of the customer? Understanding the average lifetime value of a customer is so powerful for your marketing and for your business because most businesses out there are trying to make their marketing, trying to make their sales work on a one-to-one basis in the sense they get a customer, it costs them this much, they make this much.
And the problem with that it’s getting so much more competitive that if you don’t understand how you make your money on the backend from these customers, you don’t understand what the customer’s worth to you over the lifetime on average then it makes it really hard to compete. Obviously going back to that profit quadrant in I think video two or three where we talked about the four ways of getting more customers, getting them to spend more and then getting them to spend more often. That’s really how you monetize the backend of your customer cycle, and you increase the upfront average lifetime value.
What is the average value? The average lifetime value is what the average sale is worth to you on the front end when you factor in all the backend sales, the repeat business, because we all know that in every business we’ve got customers who buy from us once, some they buy from us twice, some they buy three times, four times. Some they buy upsells and some they buy different products from us. Then we pull that together and we divide by the average number of initial sales that gives you the average lifetime value of that first transaction because each customer is actually worth more to you than what they’re actually paying you that first time because whilst we don’t know which customers at the front end will go on and spend with you multiple times, but working it out as an average it will enable you to control your costs on a marketing perspective, and even on a business perspective, by knowing that first transaction on average is worth more to you than that one-to-one value.
I’m just going to bring up a document in front of me now to just help articulate this a little bit better. I’ve done the math ahead of time because I don’t want anyone watching this thinking that I’m some kind of mathematical genius and I’m saying all this off the top of my head. I assure there is a chart in front of me that’s breaking this down.
Let’s say for example you are selling your widget and you’re making $100.00 per transaction. Okay? Now if you sell 10 people a widget at $100.00 and you divide that by 10, you get $100.00. Your average transactional value was $100.00 up front. Now let’s say that five of that first 10, half the people went on and bought that same widget or another $100.00 widget again. Now when you factor in the five people who bought from you a second time plus the initial 10 in sales, your average lifetime value is 150 per transaction on that initial 10. Do you see how that works? Now because five of them went and bought another widget worth $100.00, the front-end lifetime value has jumped up to $150.00 per sale. Now you know on average whenever you sell a product on the front end, it’s actually worth $150.00 to you on the backend.
And we’ll go into this a little bit further. Let’s say out of the five people who bought from you a second time, three of them go on and buy from you a third time. Okay? Now you’ve got a front-end value of $180.00 per average transaction. Per average lifetime value. Now let’s assume going further if out of the three that bought from you three times, two of those go on and buy from a fourth time. Now the average lifetime value of your customer up front is $200.00. Now just let that sink in. Just because we factor in those [inaudible 00:03:20] sales, now that front-end widget that you’re selling for $100.00 is actually worth $200.00 to your business. If you know this, it can help you out position your competition when it comes to the marketing side of things because if you know that you can spend a little bit more to acquire a customer, maybe you don’t have to make as much profit on the front end to get them in the front door, so you can, again going back to the offers, you can crate more compelling offers. It enables you to win that business knowing the value.
Now for instance if you’re in the hairdressing space, if you’re trying to win a customer in that space, yeah that’s a recurring revenue ultimately for the lifetime of the customer. If you do a good job and you build that loyalty, you can win a customer today that pays you thousands of dollars over the next 10 years. Understanding this will help you break down where you’re spending your marketing, what you’re giving away up front, and making sure that you’re still making profit on the backend.
Because when you break this down further, let’s say out of the two people who buy from you four times in the same [inaudible 00:04:16]. I’ve just got down here let’s say one of them only goes on and buy another two times. There’s one person in there that buys [inaudible 00:04:23]. That means the average lifetime value on the front end is $220.00.
Now when you factor in referrals, okay everybody’s referring. Again, there’s a chance that people will refer business to you so they go into the lifetime value as well. Even if we don’t just put them into the front end of this and run it again. Let’s say we count the referrals into this cycle. Let’s say one person refers two customers, and they go on and spend $100.00. Now your front-end lifetime value is $240.00 over the average lifetime per transaction, I should say. And let’s say one of them goes on and buys one more time for $100.00. That means now your average lifetime value through all these transaction is $250.00 on the front end.
I hope this is starting to make sense to you and [sort of sticking 00:05:09] that there’s money in the backend that we need to calculate out and look at what the average lifetime value of a customer is so that way we can get more adventurous with our marketing on the front end and how we actually acquire a customer.
Where this essentially really kicks up into another gear. Let’s use the same formula. That lifetime value was talking getting people to repeat buy with you, but what about with upsells? Let’s say that on that first 10 transactions, let’s say you’ve got an upsell widget. Your first widget’s $100.00 and now you’ve got an upsell of $50.00 that you’re offering people. Let’s say out of those first 10 customers that four of them go on and buy [inaudible 00:05:45] upsell. Now your average value of that transaction on the front end is $120.00 per customer. Just because we know that out of every 10 people, four will go on and buy the upset, which means now the average transaction value for your business is $120.00.
Let’s say out of the next five people who buy from you again, we’re using the same formula as before, that five people go on and buy your $100.00 widget, let’s say two of those choose to buy the upsell as well, or buy another upsell worth $50.00. Now your average lifetime value is really up to $180.00, and you’ve gone through two cycles here. Let’s say that again out of the five that buy from you twice, let’s say that three go on and buy from you a third time and one person out of the three buys the upsell now your average transactional value or your average lifetime value is already up to $215.00, and again you’re only into third iteration of your sales cycle.
And if we go one step further and we take that up to out of the three that buy three times, two people buy it another time plus one upsell, now you’re up to $240.00, and again you’re only four cycles in. You can see the effect and benefit of A upselling people and A getting recurring sales back in your business because by doing that it enables you to actually increase the front-end value of every customer on average, and if we know A you’re making more money on the long run, we can be more adventurous and push your competitors around a little bit more with your marketing on the front end because we know that if they’re trying to make their work on a one-to-one transaction, if they’re trying to make their marketing work around their customer that’s worth $100.00 to them, and we know that a customer is worth $250.00 then we know that we can go and we can effectively out position and outbid them in the marketplace and bring more people into our organization and then we just build that back in and funnel from there.
Sit down and start to think about your average lifetime value of a customer. I know this is not an easy thing to do by any stretch, but what I will say is even having an idea will get you, I guess put you in a lot stronger position than not doing this at all. Just sit down and start to think about okay, out of every 100 people, look at your books over the last 12 months, last three months, start with a shorter window if you need to, but just start to try and map it out and start to figure out okay, what’s a customer really worth in my business?
I hope this video was helpful and I hope this whole series of videos I’ve put together is helpful. I’m going to be sending this out to you all so that way you’ve got all my customers and my clients I’m talking about here so that way when you’re going through your marketing break you’ve got a bit of a video there to help understand what [inaudible 00:08:15] about. I’m going to be joining you each day for a new marketing tip, and I’m going to try and get on and do these live podcasts or live videos as often as I can to give you as much information [inaudible 00:08:27] marketing in nice and easy and digestible ways. Thanks for watching, and I hope you have a good day.
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