[Tutorial] The 3-Step Secret Formula That ANY Company Can Use To Get More Leads, More Sales, and More Revenue Online
Have you ever wondered how some businesses seem to have a constant flood of new leads and sales?
Whether you are a startup entrepreneur or a fortune 500 company, being able to effectively attract traffic and convert them into sales is a must for any business.
So in this tutorial, I’m going to go behind the scenes of mega successful businesses and expose to you all of their marketing secrets.
Did you know that it costs McDonald $1.91 in advertising to get you to walk through their front door? And once you’re there, they’ll sell you a burger for $2.09. So initially, McDonald only profits about $0.18 at the point of sale.
However, when was the last time you enter a fast food restaurant and only bought one thing? Chances are you bought a value meal or maybe something else.
So when McDonald sells you a burger for $2.09, they’ll immediately up-sell you fries and coke for $1.77 more. So in total McDonalds keep $1.32 in profits after advertising expenses.
And this is the secret to exponential growth in any business. When you can buy a customer and profit during the point of sale, you’ll be able to grow and scale your business with no limits.
This technique leads us to the secret 3 steps to exponential business growth:
Secret 1: Traffic Strategies
Secret 2: Conversion Systems
Secret 3: Customer Lifetime Value Optimization (CLVO)
Here’s how McDonald uses the 3-step formula…
They spend $1.91 to get you to walk in…this is their traffic strategy. They then convince you to buy a burger every time you visit…that’s their conversion system. And once you buy, they immediately get you buy again by up-selling you fries and coke; and that is their CLVO.
Now don’t get discouraged, I know McDonald is a global brand and they’re masters in their niche. But you don’t need to be a multi-billion dollar company to benefit from these secrets.
In fact, you can bootstrap these strategies and start for under $500 dollars. And with the power of online marketing, you can get started for less than $5 per month to cover the cost of website hosting.
Any business can succeed if you learn how to leverage these secrets. I go into detail on how to master each of these secrets below. But in order to maximize your results from these secrets, you first need to understand the customer life cycle.
So every action you take using the 3-Step formula has to influence the progression of the customer through this cycle. Everything you do, has to meet the customer at the corresponding stage in their cycle. And you have to effortlessly move them through each step of the cycle until they buy.
And once you have the customer you win, right?
You have to cultivate that customer relationship and increase the amount of purchases they make. The more they buy, the cheaper it costs to acquire that customer.
There are 3 key psychological factors that influence the customer to progress upwards through the cycle:
- Self Confidence
Desire: In order to move a customer through the cycle, you first need to identify a prospect who desires a particular result your business provides.
If a customer doesn’t desire a specific result, it doesn’t matter how good your product or service is…they are not going to buy because they feel that they don’t need it.
And not only must they desire your product or service, there has to be commercial intent. In other words, they have to possess the money and ability to buy from you.
Here’s an example of a high desire niche but lacks commercial intent. I knew a friend who started a business on helping college students with their study skills and prep.
So he developed a product to help students prepare and pass the exams. Now, what student doesn’t want to do good in school, right? But he ran into a problem. Most college students don’t have the expendable income to purchase his course. So there was a desire for his product, but this market lacked commercial intent.
Trust: Once you identified a prospect who desires and is willing and able to buy from you…you need to build their trust. Fortunately, we live in a large enough world to find tons of prospects who desire and are able to buy from us.
But it’s not enough anymore to pitch your product or service to get a sale. With great demand comes competition. So you’re not going to be the only boy and gal in town selling stuff.
But what will separate you from your competition is the amount of trust you can build with potential customers. In fact, trust is the number one reason why a prospect would not buy from you.
To show you the power of trust, let me give you this example. How many of you have bought a product or service based on the recommendation of a family or friend?
I can think of over a dozen.
My trust in that person was enough for me to make a purchasing decision. If you and I are in a similar business but I have more trust in the market than you do…I win.
Not to be arrogant, but the same goes for you; if your business has more trust in the market, customers will wave my business goodbye as the beat a path to your doorstep.
Self Confidence: This one doesn’t carry as much weight as the other two, but still influences the customer’s progression through the cycle. Here’s a great example, someone is seeking a weight loss program. They have a desire to better their health and they may even trust a recommended personal trainer.
But something prevents them from purchasing the program. They think that their body is different and that, yes, the program works for others but it might not work for them.
They desire the program, they trust the business that is offering the solution but they don’t know if it’ll work for them. Their lack of self-confidence will paralyze them from moving through the cycle–let alone buy something from your business.
So they may want the result, they may believe that you are capable of helping them get it but they might not have the self-confidence in themselves to put in the effort necessary to acquire the result they seek.
So how do we do it? How do we increase their desire, trust, and increase their self-confidence?
So there are three levels you can deploy to influence a prospect’s desire, trust and self confidence.
The bottom level is “what you say” about your business. This is where you boast about your product or service. It’s the level where the annoying car salesman operates.
This is where most of your competition lives. They’re yelling from the top of their lungs how good and awesome their business is–begging you to buy from them. Nobody really cares and it’s the least effective.
The next level is “what others say” about your business. Also known as testimonials. One of the best ways to connect with a prospect is to tell a story of an existing customer.
Sites like Amazon and Yelp are powered by customer testimonials. When I browse on Amazon I almost never purchase anything under than five stars.
A product with high ratings and a lot of testimonials shows proof about the quality of that product or service. The masses are usually right when it comes to judging the quality of a business.
The final level is “what you demonstrate” about your business. And as you probably guessed…it’s the most powerful out of the three.
Here’s a story to illustrate the power of this level:
There was a salesman from the Corning Glass who sold more safety glass than any other salesman in the company. The owners of the company were so impressed with his numbers that the begged and asked him, “What’s your secret? How were you able to sell so much more than anyone else?”
His response was simple:
“First of all, I got some pieces of safety glass cut into 6″ X 6” pieces as samples. Then, I got a hammer. And then I walked in on the prospect and asked, ‘Have you ever seen glass that doesn’t shatter when it breaks?’
When the prospect expressed disbelief, I put the sample of safety glass on the desk and I would whack it with the hammer. The prospect would then leap back to avoid the flying splinters, only to find that there weren’t any.
“Then I’d say, ‘How much of it would you like?’ And I’d pull out my order pad and start writing the order.”
The salesman shared his method of selling safety glass with the other salesmen. From then on, the other salesmen went out with safety glass and hammers to demonstrate to their prospects. But the next year, he was still the number one salesman in the nation.
When asked how he was still able to sell the most safety glass even though every other salesman was using the same technique, he explained that he had to change his approach slightly in the second year.
He would then ask the prospect, “Would you like to see glass that doesn’t shatter?” Then he would hand the hammer to the prospect and have them break the glass.
This story is a prime example of the power that demonstration has when influencing a prospect’s decision to purchase.
Another reason that makes demonstration so powerful is that they influence the subconscious decision triggers of the mind.
The demonstration strategy conceives an idea in the prospect’s mind. It gives the illusion that it was the prospect’s idea to make the purchase. In other words, the prospect convinces himself to make a purchasing decision.
As you can see in the graph above, the customer is progressively moving up the cycle each time a demonstration method is executed.
Using the Corning glass salesman story, we can say that his shattering glass technique is demonstration method number one in the graph.
Giving the prospect the hammer could be demonstration method number two. And having the prospect drop the safety glass on the floor could be demonstration method number three.
Each demonstration is designed to progressively move the customer through the cycle. Now I can already hear you say, “Yeah but, I don’t sell safety glass. Can this work for my business?”
And in most cases, yes it can. If you own a software company you can give away a free trial to your software. You can then record a video showcasing the benefits of your software and email it to your prospect.
Depending on your business you can give out samples, send video tutorials, write an informational article, etc.
Remember that each demonstration strategy is supposed to solve a specific problem your prospect is facing. If you are in the software or information business, email marketing will be the perfect demonstration pathway for your business.
If you are selling physical goods, you can still use email marketing in your business. You just have to get a little creative. You can send out a weekly product review, product un-packaging videos, and maybe even monthly contest drawings.
So now that you understand the customer life cycle and the psychological factors that naturally progresses them through it. Let’s dive into the next part of this tutorial and begin with Secret #1.
Secret #1 — How To Drive Insane Amounts Of Laser Targeted Traffic To Any Website You Want
Acquiring a constant flood of visitors to your website is the lifeblood of any business. This topic has been a mystery to every website owner since the beginning of the internet.
Businesses tend to over complicate traffic acquisition. And even worse, they are not prepared to CONVERT the traffic they initially start to get. They invest a little time and some money into a couple traffic campaigns and then direct that traffic to a generic homepage. Only to find out that no one bought their product or service.
The reason for their failure was unqualified traffic and poor conversion funnels. You need to target the most qualified traffic and direct them to a properly optimized conversion system.
There are three types of traffic you can target online.
Cold Traffic: Are Prospects Who Haven’t Heard From You Before
This is the least qualified type of traffic and your goal here should be to acquire a prospect as a lead and nurture the relationship.
For example, you can create a lead capture page and start collecting email addresses. You can than nurture that relationship through your email marketing software.
You should NOT be trying to sell your products or services to cold traffic. Your approach should be indirect and friendly from the start.
The great thing about cold traffic is that there is virtually an unlimited amount available online. If you can master cold traffic, you’ll never have to worry about attracting new leads into your business ever again.
Warm Traffic: Referrals
The people you attract from this traffic source know about you before you even contact them. In some cases, they are expecting you to contact them.
Warm traffic covers two of the progressive factors we covered above. This traffic source has desire and some level of trust being that someone referred them to you.
With warm traffic, you can be a little bit more aggressive in promoting your business. But remember, most people won’t buy at the first point of contact. So don’t get carried away here, you should still nurture this type of traffic and make efforts to progress further through the customer life cycle.
Here are some warm traffic types:
- Leads in your CRM
- And incoming inquiries
The better the traffic the harder and more expensive it is to get. If you can concentrate all your effort on this traffic source, and back it up by an optimized conversion funnel, your business will succeed beyond measure.
Your goal with this type of traffic is to position your business to have people come to you. And you do this by providing value.
When it comes to online marketing there is no better way to attract warm traffic than to create your own website or blog.
Hot Traffic: Your Customer List
There is no better source of traffic than the people who have already bought from you. The people who raised their hand expressing desire and became your leads, and the people who trusted you enough to buy from you.
If you were to give me a choice between a list of a million prospects or a list of five thousand buyers, I will fight like my life depends on it to win the buyers list.
A buyers list, is a list filled with people proven to take action. They have a track record of spending so they’ll buy again and again.
And not only is your customer a list of proven spenders, but they are people who trust you and your business.
The next time you sell them something you don’t have to sell as hard. In most cases, a simple product recommendation is enough to manifest a cash windfall from a big enough buyers list.
There is a technique to acquiring a massive customer list I cover in detail in the conversion secret below. But I’ll give you a little glimpse on how to do this.
The bigger the financial investment, the more you have to do to progress that customer through the cycle until they buy.
So how do we get a prospect to buy something from us as soon as possible?
You provide a product or service so affordable that it’s almost impossible not to buy. You must lower the barrier to entry. Your goal is not to profit from this low coast product or service; your goal is to get the customer at all costs.
Now that we know what type of traffic we can target…
Let me give you some actual traffic sources you can immediately use in your business to attract a flood of leads.
WARNING: If your website is not prepared to take the sudden influx of traffic, your website servers may crash (trust me, this is a great problem to have!)
Traffic Source #1: How to Steal Your Competition’s Top Traffic Sources
So traffic source number one is not really a specific source but a strategy you can use to spy and target your competition’s top traffic sources. Say for example I own a gym chain and I wanted to attract new members.
Chances are the there’s another gym targeting my ideal audience. What if I had a tool that can show me that gym’s top traffic sources?
Fortunately there is a tool available and it’s called:
SimilarWeb is an advanced insights tool. They analyze app and website data and break it down into 240 categories.
But for this strategy we want to concentrate on one category — and that’s referral traffic. You’ll be able to enter ANY website you want and see all of the referring sites that are sending them traffic.
Let’s head on over to SimilarWeb.com and enter any of your competitor’s website URL. You’ll then be taken a page that looks like this:
(I blurred out this site’s name for their privacy)
You’ll be able to see all sorts of valuable information on this page. You can even see exactly how much traffic your competition’s website is getting.
But more importantly, you can see where this traffic is coming from. To check the list of referring traffic, just click on the referrals tab on the left side of the screen.
You’ll be taken to this screen:
You see where it says, “Top Referring Sites”?
Those are all the websites that send traffic to this site. What you then can do is visit all of your competitors top referring sites and see if they can also send traffic to your site.
In almost all cases, these referring sites do not have exclusive relationships with their partnering sites. In fact, you’ll commonly find that these referring sites have advertising programs.
So you can join their program and start receiving traffic almost immediately. You see, every site has a traffic source; you just need to find out what they are and see if they can also send you traffic.
These are the insights of just one of your competitor’s sites. You can make a list of all of your competitors and research their top referring sites one-by-one.
Soon you’ll have a list of sites that can send quality traffic to your business.
“There is no such thing as a traffic problem.” Ryan Deiss
Traffic Source #2: How To Attract Over 1000 Thousand Leads Per Month
LeadServe by Opt-Intelligence
Mastering the art of traffic has a bit of a learning curve. Most of the traffic sources online operate on a bidding system. And to qualify for cheaper traffic, you need to learn how to operate their system.
You’re competing with fortune 100 companies with millions of dollars on advertising budget. So if you don’t know what you’re doing, you’ll quickly burn through your budget and have nothing to show for it.
LeadServe eliminates the guessing of bidding all together, and automatically inserts leads into your Customer Relationship Management (CRM) system.
Just start a campaign, set your targeting parameters and start receiving leads in real time. LeadServe is an advertising platform — but with a twist.
You are not advertising for visitors, but for ACTUAL leads inserted directly into your business. Pretty cool, right?
Here’s an example of an LeadServe ad:
Set up an ad, like the example shown, in minutes. They then display it to targeted consumers on hundreds of premium websites and mobile apps.
Interested consumers provide their contact information and click “Sign me up”. The new leads are then immediately sent to you. It’s really that simple — just create your ad and let them do the work. There is no minimum budget, so the bootstrap entrepreneur can find success with this platform.
On the other hand, if you’re a bigger a more established business, you can set higher budgets to attract even more leads. With LeadServe, you’ll know exactly how many leads you get. The average cost-per-lead is about $0.51.
Here’s a quick start video on how to get started with LeadServe…
Traffic Source #3: How To Tap Into A Traffic Source That Sells 2 Billion Guaranteed Ad Impressions Per Month
BuySellAds is an advertising platform that sends traffic through display, sponsored content, custom ad units, and even sponsored tweets.
You’ll have access to thousands of publishers all at once; so they pretty much have traffic publishers for almost any niche.
Their platform is pretty simple really. They have a database of almost 2000 thousand publishers. Publisher is just a fancy word for website.
So publishers are high traffic authority websites. Sites like Aol.com, Investing.com, Mail.com, and PBS.com. And that’s just a few. If you can master this platform, you probably won’t need any other traffic source.
You get traffic from these publishers by buying impressions within the pages on their sites. Here is a glimpse of some of their custom ad units:
You now know enough traffic sources to last you a lifetime. And I only gave you three. We haven’t even talked about Facebook and Google. The two dominating traffic sources on the internet. But I’ll cover these two hundred pound gorillas in a future article.
Now that you have traffic…how do we convert these visitors into leads and paying customers?
That answer to this question leads us to secret #2…
Secret #2 — Conversion Systems: proven conversion systems that seamlessly captures leads and converts them into paying customers automatically and without being salesy
In this section you’ll learn how to create conversion funnels that seamlessly progresses a prospect into a paying customer. The primary goal of a conversion funnel is to automatically build a relationship with your prospect and then sell them on your products and services.
This is where most businesses drop the ball. They are so fixated on attracting traffic, that they forget to build a system that converts that traffic and sells them effortlessly and seamlessly.
The perfect conversion system is like an airplane. Your prospects are your passengers and you’re supposed to fly them all the way to their sales destination. And doing it as quickly and as safely as possible.
A proper conversion system can be broken down into four parts:
- Lead Acquisition
- Low Barrier Product
- Main Product
- Lead Nurturing
Here’s a diagram illustrating the four parts:
As simple as it looks, this conversion system can catapult your business into legendary status. This conversion system can be designed to work automatically and around the clock.
Once it’s set up, you don’t even have to be around to have it automatically capture leads and convert them into paying customers.
Let’s break the conversion system down one-by-one.
The main goal of lead acquisition is to capture a point of contact from your prospect. Since we are dealing with online marketing…capturing your prospects email address is your ultimate goal.
But how do we do this?
How do we convince a prospect to give us their email address? You have to bribe them with an irresistible piece of content. If I owned a personal training business, my lead bribe could be a report providing the top 11 fat burning super-foods.
That’s something anyone who’s trying to lose weight would definitely want. But it’s not enough, we have to make it sexier–really convince a prospect.
How about this…
“FREE Report Reveals…The 11 (Dirt Cheap) Foods I Eat To Lose Weight (Including One That Burns Fat While You Sleep)”
Now that…is sexy.
That’s something your prospect would want in exchange for their email address. Lead bribes can be offered on a page usually called a squeeze page.
Here is a squeeze page from GetResponse…
The biggest mistake a business owner can do is send traffic to a generic page on their site. Most business owners send traffic to their site’s homepage.
That’s a huge mistake. There are too many options for your prospect to choose from. What do you want them to do?
Do you want them to buy?
Do you want them to read your about page?
Do you want them to contact you?
You have to take charge and lead your prospect exactly where you want them to go. A well optimized squeeze page can convert anywhere from 20%-40% of your visitors into subscribers.
If you combine your optimized squeeze page with a high quality traffic source…you’ll be looking at conversions upwards of 60%.
How To Create The Perfect Lead Magnet
A lead magnet solves a specific problem your prospect is facing. It should be designed to provide immediate gratification.
The example above, “The 11 Fat Burning Foods,” solves a specific problem and provides instant gratification. All they have to do is give you their email address and they immediately receive a solution to their problem.
And this doesn’t have to be complicated either. The lead magnet can be a simple 2-page PDF download. As long as you deliver on your promise, it can be any length.
Here is an example of a simple, yet powerful lead magnet…
As you can see, it’s a simple report that can be consumed in 90 seconds or less. Here’s a checklist you should follow when creating your lead magnet:
- Quick to consume
- High quality (it’s all in the design and packaging)
- Solves a specific problem
- Instant Gratification
Low Barrier Product
Ryan Deiss over at Digital Marketer pioneered this strategy. Your low barrier product is a low-cost offer that is designed to convert as many prospects into paying customer.
It’s a low barrier product because the cost is so cheap that a prospect will purchase the offer on impulse. You don’t have to do much convincing because the price is so low that there’s virtually no risk for the prospect.
As a result, you’ll be able to attract a huge customer list. And not only is the low barrier product meant to get a customer, but what do you build when your now new customer is happy with their purchase?
Congratulations, you literally just rocketed your prospect miles through the customer life-cycle. Now, you will get way better conversions when you up-sell them on your main product.
It’s so hard nowadays to get a prospect to buy from you for the first time. But you will shatter your prospects resistance by offering a owe barrier product.
Let’s crunch some numbers to see the impact a low barrier product can have on your business.
Say we can get 1000 visitors to see your low barrier product. It’s safe to say that we can convert up to 10% of those visitors into paying customers. And let’s price our low barrier product at $7.
So now we have 100 new customers with $700 worth of sales. What if then we offer them an immediate up-sell at the point of purchase? That’s actually a great idea. So out of the 100 new buyers we can also safely say that up to 20% of them will purchase the upsell. And let’s price our up-sell at $197.
Now we have a total sales amount of $4,640. That’s $700 from the low barrier product and $3,940 from the up-sell.
That’s pretty good.
But now let’s look at it without the low barrier product. If you send 1000 visitors directly into your main product priced at $197, you can expect a 1% conversion on average.
So that’s a total of $1,970 in sales. Compare that to the $4,640 we got by first offering a low barrier product. As you can see, this strategy alone can skyrocket your profits.
Here’s an example of a low barrier product from SurvivalLife.com…
They are offering this product for free but the prospect still has to pay $4.95 for S/H. A transaction is still being made. So trust is still being built.
Here are some types of low barrier products:
- Low cost physical product
- Ebook PDF
- Software Trial
- Product Samples
- Event Tickets
A low barrier product should be sold between $1-$100. Depending on your business, a $100 product might be a low barrier offer to some prospects.
Your main product is your business’s core offer. And if you’re like most businesses, this is where you start to sell your prospects on. You should use most of your main product’s profits back into your advertising budget to acquire more customers. Some bigger businesses don’t even profit at this level. They are still in the negative.
But they understand the value of a well optimized conversion system, so they’ll make bigger profits on the back-end by up-selling more products and services.
So let’s dive in and show you how to sell the heck out of your main product…
How To Create An Irresistible Offer
In order to create an irresistible offer you need to understand why people buy. We talked about on how you can get them to buy above, but you need to discover the deep psychological reasons someone buys something.
Tony Robbins states that there are only really two things that motivate the core of everything you do.
And those two things are:
Everything you do is supposed to move you further away from pain, and closer to pleasure. Every decision you make will be influenced by these two key factors.
Your main product should either be moving your prospects away from their pains, or moving them closer to the pleasures they seek. And if you can properly execute both of these factors at the same time…you’ll be unstoppable.
So if you are in the business of selling something, every sales message you publish should trigger these two key factors in all of your prospects.
So enough psychology, let’s bring this into light and show you some practical ways you can implement into your marketing strategy.
Here are the 5 factors that trigger the pain and pleasure motivators of your prospect.
- Your Headline
- Identify Their Problem (avoid pain, gain pleasure or both)
1. Your Headline
Your headline’s objective is to grab their attention. To instantly trigger the pain and pleasure motivators of your prospect.
The difference between a successful marketing campaign and a failing one could be the headline. Headlines are so important that 8 out of 10 people will read the headline and only 2 out of 10 will read the rest of your message.
So you can lose up to 80% of your visitors with a poorly optimized headline. So when you try to sell something most of the people you are targeting are not even seeing your sales message.
How powerful are headlines?
This case study answers that question. Here is a book published by Naura Hayden that sold only a few thousand copies…
It was later published with a different headline that then looked like this…
It became a #1 New York Times bestseller with millions sold.
How To Create The Perfect Headline
Headlines have to establish a few things…
- They need to create a sense of urgency
- They need to be newsworthy
- They need to be Ultra Specific
They don’t need to target all of these at once. For example, remember the headline I wrote above?
“FREE Report Reveals…The 11 (Dirt Cheap) Foods I Eat To Lose Weight (Including One That Burns Fat While You Sleep)”
It creates a sense of urgency because they want to know exactly what those “dirt cheap” foods are. It’s ultra specific because it describes the 11 types of foods.
Many years ago Victor Schwab created a two-page advertorial showcasing 100 of the best advertising headlines to promote his agency.
I’ve created a cheat sheet of those exact 100 headlines for my reference. You can download it here…
I’ve also included a copy of Victors Schwab’s original advertorial. And you can download that one here…
Use these headlines to inspire you to create better attention grabbing headlines of your own.
2. Identify Their Problem
Robert Collier wrote that every good ad begins by, “entering the conversation already taking place in your prospect’s mind”.
Every prospect at the point you contact them is having a conversation in their mind. And it’s usually about a specific problem they are having.
Your job is to enter that conversation and introduce your business as their perfect solution. You have to put yourself in their shoes and understand the way they think. And this is a lot easier than you think.
Because you yourself ARE a prospect. And you yourself are a customer. So think about yourself and what triggers your pain and pleasure motivators.
If you want more insight…just simply ask your prospects what problems they are having. Just create a short survey and send it to your existing leads.
You are going to start seeing patterns when your prospects start to answer your survey. Identify the most common problem and use that as part your marketing message.
This is how you can address this problem within your sales messages…
“Why You Are Dieting And Still Not Losing Weight”
- You are not eating the right foods
- You are using OLD dieting methods that do not work today
- And you are not being consistent
A prospect reading will say to himself, “Yeah I’ve been dieting for years and I haven’t lost any weight.”
And they will also say, “Yeah, I just don’t know exactly what foods to eat.”
Do you understand?
You are entering the conversation they are having in their minds and subconsciously building rapport with them at the same time. Now your next step is to show them proof that your business provides them with the perfect solution.
Out of everything we already talked about, if you can just implement this one thing, you’ll be 99.9% ahead of your competitors.
A great example of showing proof in marketing was the story I told you earlier about the Corning Glass company.
The salesman was outselling everyone else because his presentation was all proof. He was physically showing his prospects that the safety glass he was selling doesn’t shatter.
And he was actually hitting the glass with a hammer! That is what you call INSTANT proof.
So how do you demonstrate proof in your business?
Demonstrate the benefits of your product or service right in front of your prospect. But it has to have impact; the hammer on the safety glass story above had impact.
Try to incorporate something like that into your business.
Infomercials And How They Bombard Their Viewers With Proof!
Have you ever seen those Beach Body commercials?
I’m sure you have.
And have you ever sat down to watch the whole commercial?
I’m sure you have too? That’s because they captivate you with stories and before-and-after case studies. These commercials are filled with before-and-after videos and pictures.
And why do they keep using them? Because they flat out work. So to incorporate proof into your marketing, show examples of before-and-after results of your product.
Businesses that don’t offer a guarantee are rookies. You could have gotten away with not offering guarantees in the past, but now with fierce competition it should be a requirement.
You will almost get more sales when you implement a very strong guarantee. But businesses are so scared of offering guarantees.
After all, doesn’t offering a guarantee encourage your customer to return your product?
Well, I have two answers to that question…
One, your product probably sucks. And you should take the time to improve it.
And two, you do not know your numbers.
Offering a guarantee can add an additional 10 more sales. And out of those 10 sales, probably 3 or 4 of your customers would actually go on ahead and request a refund based on your guarantee.
But that’s still 7 plus more sales you didn’t have before offering a guarantee. You’ll still win by offering one. Truth is, most customers forget about the guarantee so they probably won’t even remember to claim it.
Here are some type of guarantees…
30-Day Money Back Guarantee
Your traditional guarantee. At the very least, you should offer a 30-day money back guarantee. You’ll be losing on sales if you’re not at least offering this type of guarantee.
Double Your Money Back
This guarantee is a bit scarier. But to make it worthwhile you have to make it conditional. For example, I could be a personal trainer offering a weight loss program.
I could guarantee something like:
“How to lose weight in 90 days or less…or I’ll DOUBLE your money back!”
That’s pretty convincing. And if you are confident in the ability to bring results to your customers, than this guarantee can work very well.
Once you presented your business to your prospect, you have to ask for the sale. I can’t tell you how many times I’ve gone to a business completely sold on their services and they did not show me what to do next.
Like I said earlier, you have to lead your prospect and tell them EXACTLY what to do.
Here are some examples of great call to action sites…
That’s really good. It has a great explainer video, front-and-center headline, and a big orange button telling you what to do next. This page shows you exactly what to do after you watch the video.
Here’s another one…
Do you know what to do on this page?
I know I do.
The final part in the conversion system is lead nurturing. This is where you follow up with your prospect all the way until they buy from you.
Seldom does a customer buy from you during their first visit. Research shows that it takes up to five touches until your customer has enough information to buy.
Trying to sell all of your products during the first contact is a huge mistake. If you are really good, you’ll only get 10% of your prospects to buy during the first time.
But a business’s true profits manifest from the remaining 90%.
How To Nurture Your Leads?
You do this by demonstrating the value of your business. Like we talked about above, the avenues you can use to communicate with your prospect are:
- Direct Mail (Yes, this still works!)
Email: email marketing is the best online marketing pathway for ROI. Here are some motivating stats on email marketing:
66% of consumers have made a purchase online as a result of an email marketing message (Direct Marketing Association).
44% of email recipients made at least one purchase last year based on a promotional email. (Convinceandconvert.com).
7 in 10 people say they made use of a coupon or discount from a marketing email in the prior week. (2012 Blue Kangaroo Study).
Direct Mail: direct mail is probably the most overlooked marketing strategy. The reason being that it simply isn’t sexy anymore. Direct mail is powerful and you are losing money if you are not using it.
On average, those who receive at least a catalog in the mail spend 28% MORE MONEY on items than those who do not receive a catalog. (delivermagazine.com).
Even Google, a digital company, uses direct mail to promote a $100 dollar advertising coupon.
Telephone: telephone marketing goes right along there next to direct mail. They’ve be around forever, but still work today. However, you should not use telephone marketing for initial sales contact…we all don’t like those dinner interrupting sales calls.
Alright, so we’ve covered secret #1 which was traffic strategies. And we just finished secret #2 — conversion systems.
Let’s conclude this tutorial with your final secret…
Secret #3 — Customer Lifetime Optimization: How To Maximize Your Profits By Increasing The Amount Your Customer Buys
Legendary marketer Jay Abraham discovers that there are only three ways to grow ANY business…
- Increase the number of customers.
- Increase the transaction size.
- Increase the purchasing frequency.
First, you need to increase the number of customers you get into your business. The low barrier strategy we discussed in the conversion funnels covers exactly this.
Second, raise the prices of your main product. A higher dollar product means you’ll have more money to spend on advertising. You should also include immediate up-sells during the point of purchase.
And third, increase the amount of times a customer purchases from you. This is where your back-end sales comes into play.
How To Increase Your Customer Lifetime Value (CLV)
Here’s a case study showing you an example of an optimized Customer Lifetime Value campaign.
Vincent James from the 12 Month Millionaire started promoting his business with direct mail. So he targeted a list of people who purchased via direct mail, A.K.A junk mail, in the past.
Yes, most people never read your direct mail sales letter. In fact, over 95% of people throw your mail straight into the garbage. But if you know what you are doing, the 5% of people who do open your mail can make you filthy rich.
He was selling a $60 supplement product. It cost only $2 dollars to produce and package. And he charged the prospect $6.95 for shipping and handling. This covered the production and delivery costs.
So he netted $60 minus advertising expenses. His cost to mail 1000 people was $600. He only needed to sell 1% at $60 to break even. But his campaign was averaging 2% and up. So he doubled his money during the customer’s first purchase.
He sold his supplement product on a subscription service; and customers stayed on average 4 months before they canceled. So that initial $60 sale become $180 over the lifetime of that customer.
So selling 2% of 1000 mailings equals 20 sales at $180 during the customer’s lifetime. And equaling a total of $3600 from just ONE mailing. The advertising cost to mail those 1000 prospects was $600. So total profits after advertising expense was about $3000.
This direct mail campaign was an example of increasing a customer’s purchasing frequency. This was automatically done by the subscription service.
Compare that to a total of $1200 if he only sold one supplement. In other words, if he only had one product. By having a subscription and increasing the frequency of sales, he positioned his business for massive success.
So he knew exactly how much he needed to spend to acquire one customer. But you have to know your numbers. If you don’t know what your customer’s lifetime value is, you are playing a very dangerous game.
Here’s a chart from Jay Abraham’s book showcasing all of the customer lifetime optimization values explained above…
You have to track everything. Once you know your numbers, you can find areas you need to work on and improve. You’ll also be able to calculate how much it costs to buy one customer.
If you can net $2 from every $1 you spend on advertising, your business grows.
Now, if you can net $4 from every $1 you spend on advertising… your business will be a monopoly.
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Originally published at matosmarketing.com.