Customer Value Issue
Customer value can dramatically change your success, sales and profits in the next 30 to 60 days. It’s so easy to lose focus on this one simple thing…so today, I’m here to get you on track!
Marlon here and BACK with another Marlon’s Marketing Minute issue.
What can you focus on right now, this week, to make things go your way? How do you sort through all the COMPLEXITY and find a few simple things you can do that get results for you? There are so many emails, offers, webinars, Facebook ads, opportunities, websites, blogs and competing elements for your time, you can quickly drown in a sea of complexity trying to research all of them.
In times past, you COULD research everything. Today there is just too much information, too fast. Which makes it even harder if you have a full-time job and doing this part time.
Before we take a quick look at 7 ways to use your customer value to crank Internet marketing profits in short order, a few quick housekeeping matters:
1. Push Button Target Marketing has been updated AND EXPANDED with two new videos added with two additional PDF’s. Normally, I would charge $30 to $50 for an upgrade to an existing product but for existing owners, this one is on me to say thank you for being a loyal customer. Just log into your account and you’ll find the updated product there.
2. Last week I promised a PDF if you commented. Everyone commented using Facebook and Lorraine can’t access my account so she couldn’t send the file. Therefore, I’m posting it here.
Way Number One: Focus on the only two things that matter in ANY Internet marketing business — Customer Value and New Customer Acquisiton
You’ve heard me talk about this before.
The only two customer value metrics (numbers) that matter are:
a. The # of new people you’re stuffing into the front-end or opening of your marketing funnel, sequence or whatever you want to call it.
This could be:
* The number of low-ticket info product buyers you have
* The number of people who sign up for a free trial
* The number of people who attend a webinar
* An opt-in or new subscriber to your email or SMS list
* It could even be the number of people who like your Facebook fan page
The “front-end” is the thing that starts the relationship with you.
b. How much those people are worth to you financially after 30, 60, 90 or 365 days.
All businesses boil down to getting new customers and getting them to spend money in exchange for things they want. The more those customers are worth, the more money you can spend to get them and the faster you can spend that money. That’s your short course on customer value in a nutshell.
Of course, this desire to make sales to your customers is counter-balanced by the desire to have long-term customers and avoid customer problems or complaints.
A new book by real estate mogul Gary Keller contends you should focus on only one thing. Noah Kagan from App Sumo and Sumome says the same thing. However, you can’t usually get a lot of new customers UNLESS you’re able to get a decent customer value after 30 to 90 days BECAUSE it takes money to get new customers, launch new products and to support customers. And it’s very true that IF you have your customer value dialed in, locked and loaded THEN you can ONLY focus on the number of new people you’re putting into your marketing sequence, funnel or email marketing follow up sequences or broadcasts.
Why is this absolutely critical? Because the results you get are caused by what you FOCUS ON day in and day out. Think about that. What are you focusing on today in your business? If it isn’t increasing your customer value and the number of new customers, THEN you have problems. And it’s ever so easy to get distracted and lose focus on the big picture. Before you know it, you’ve wasted your time on:
* Facebook posts with no strategy (that is, you aren’t networking with a plan)
* Reading emails that sucked you in but don’t amount to much
* Researching things that aren’t directly related to what you’re doing in the next 90 days to get more new customers and increase their value.
In other words, it’s darned easy for ALL of us to act like a hamster running hard as heck on a wheel that goes to nowhere other than marketing hades! The SOLUTION is to FOCUS on the two marketing metrics (numbers) that matter.
Way Number Two: Track your customer value by where they came from
When you get customers from Facebook, you need to know how much THOSE customers are worth to you in sales after 30 days or 60 days so you can know how much you can afford to spend to buy them. It would be darned convenient if all customers from all sources (what marketers call “channels”) bought the same dollar amount after 60 days. But it doesn’t happen that way.
Customers you get from affiliate A might be worth a lot more than customers from affiliate B.
And customers you get from Youtube videos might be worth a lot more to you than customers you get from tweets.
Now, MEASURING CUSTOMER VALUE by channel is simple but takes time. All I can say is it’s worth the time. I’m trying to get a better system in place in MY business for it right now. It’d be nice if all software programs “got it” and made these numbers available in a flash. But even if they SAY they do, probably they don’t!
Way number Three: Once you KNOW your 30, 60, 90 customer value, stick more money in the slot and keep pulling the crank as long as 2x or 3x your money comes out!
This is where things ramp up and get exciting.
There is no right or wrong way to do this. But MOST people would be willing to spend 1/3rd to 1/2 of a certain range of customer value to get more of ’em. In other words, if you have a slot machine. And every time you put a buck in you get two bucks out, how many times are you going to put a buck in?
Probably as many times as you can!
I speak from personal experience on this. I’m not a gambler. But one time I was in Las Vegas speaking at a seminar. And I had a female friend who was very attractive and we decided to play the slots. NOT the big slots. These were the nickel slots, because I don’t like to lose money!
I’m NOT making this up. The guy watching us on the camera must have had a crush on my friend. Because EVERY TIME she pulled the crank, money came out! They had to bring MORE MONEY to our slot machine. I literally was trying to change my flight out so I could really cash in. We made $350 in short order. And there were no signs it was going to stop!
I think a challenge a lot of people have in Internet marketing is a VERY LOW EXPECTATION OF SUCCESS.
In other words, they don’t have any friends or family who make a living doing Internet marketing. They’ve never tasted success. So the entire darned thing seems unreal and not plausible. However, everything changes once you know your 30-day number. Here’s an example:
Let’s say in 30 days customers spend a modest $20 on average. And in 90 days they spend an average of $60.
Would you spend $20 to make $60?
Because if you would, all of a sudden what maybe seems partially unreal or hard to believe becomes REALITY in your world, in your room, at YOUR computer desk or with your laptop.
All you do is buy more customers for $20 and make the $60.
Let’s look at what it takes to buy customers for $20.
100 clicks times .20 = $20
If you spend .20 a click and make 1 sale out of 100, that is your $20 to get a new customer. It can be done. A friend of mine just today messaged me on Facebook that he is getting opt ins for .13 cents each! And they are highly targeted. But let’s say you can’t get .20 cent clicks since the average on Facebook according to a stat I read this morning is .50. 100 clicks @ .50 = $50.
Let’s run a few numbers:
a. You could have 25 out of 100 clicks opt in to your email list.
Out of those 25, you would hope to have 2 to 5 sales within 30 days. If you had three sales @ $20 each, that would be $60 right there. But maybe you only have 2 @ $20, which would be $40. Then you need to get back at least $80. But the GOAL is TRIPLE y our COST OF ACQUISITION. So if it costs you $50 to get a buyer, your goal is to get back $150 in 90 days. That is 3 sales @ $50 each. Or a $100 sale and a $50 sale. Or a $150 or $200 sale.
b. You could have 1 to 5 out of the 100 clicks spend $1.00 on an entry level product
Then out of those $1 buyers, you hope 1 or 2 of them go on to spend $50 within 30 days, so you can recoup your costs
c. You could send those clicks direct to a webinar sign up page. Then go for a $100 or $200 sale right off the bat
d. You could send those clicks to a webinar sign up page and at the end of the webinar take applications for a coaching program.
e. You could get one customer who signs up for a $10 or $20 a month recurring billing program.
Do you get it?
There are NO RULES! You try 10 things over time. 1 or 2 of them will work. Then you need to have the God-given common sense to RUN with the one or two things that work for all they are worth!
Way Number Four: Spend just $1.00 a day to reach 4,000 people
Your minimum ad spend on Facebook is $1.00. For that $1.00 at their average cost per thousand rate of .25, you will reach 4,000 people with your ad. That is $30.00 a month. This lets you test out ad ideas, and get some opt ins where you can start measuring the 30-day value.
All you’re trying to do is see if you can get two or three people to buy from you. That’s all.
Anyone can spend $30 a month for some testing. However, there are ways to promote that cost no money upfront.
Way Number Five: Instead of buying ads, pay out a 100% commission to affiliates
This is another way to do the deal. Pay out a 100% commission on a $20 product. Then send emails for other offers and measure your 60 and 90-day customer value. Since you ONLY pay a commission AFTER a sale is made, anything you get is gravy train.
Way Number Six: If one door doesn’t open, try another
I was surprised to read that when Noah Kagan started AppSumo.com Google Adwords didn’t work for him. Neither did blogging. He couldn’t get either to be particularly profitable. But then he found he as making bank on his Facebook ads. He kept increasing his ad spend from a small amount all the way up to eventually spending a whopping $300,000 a month. Of course, he worked his way up to that. His initial spends were very small. I think the first one was $100.
Way Number Seven: Crank up the 60 day value
To make this formula work, you need a good, strong 60-day value.
a. Craft a series of emails for your autoresponder
One of my friends, Jonathan Mizel, did this for his Traffic Evolution product. He wrote an extended email series that converted 10% (as I recall) of subscribers into monthly members.
b. Try your hand at a webinar
Especially if you’re a good verbal sales person, by all means do webinars or teleseminars and sell a bigger ticket, maybe a $500 or $1,000 home study course or coaching program. Or a $50 or $100 a month membership site.
d. Add a recurring billing item
Whether it’s a CD of the month, widget of the month, membership site or something else, if you can get paying members monthly that stick, you have a little cash cow.
The big secret is simply FOCUSING on it.
We all face an endless number of problems, challenges, phone calls, messages, Skypes, family problems, health problems, car problems and every other kind of problem you can think of. The only antidote to the endless distractions is to SIMPLIFY YOUR FOCUS.
The simplest thing to focus on is your customer value and the number of new customers you get. You can’t multiply zeroes. You have to be able to put fresh, new customers into your marketing funnel. If this newsletter issue puts things in better focus and perspective for you, I’d appreciate a tweet or comment below.
PS: Here’s your 3-step action plan
1. Share this newsletter issue on Facebook or Twitter. The more readers we have, the more motivated I am to go over the top in giving you great information and value. By helping me, and helping others, you help yourself.
2. If you don’t have your target market yet, check out the newly added to Push Button Target Market
3. Focus DAILY on increasing your customer value, number of new customers, or both. ALWAYS be thinking about one or both of these 2 things. ALWAYS! It’s the law.
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The Road Not Taken
Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim
Because it was grassy and wanted wear,
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I marked the first for another day!
Yet knowing how way leads on to way
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I,
I took the one less traveled by,
And that has made all the difference.
If you got value from this Marlon’s Marketing Minute newsletter about Customer Value, please tell me in comments, then like and share.