WEBVTT 1 00:00:00.000 --> 00:00:03.760 What we're trying to figure out is how much can we make up front in the first 30 days 2 00:00:03.760 --> 00:00:05.440 and then what's the life-term value, the customer? 3 00:00:06.240 --> 00:00:09.200 Welcome to the Jim Seekers podcast where you talk about how to get more customers, 4 00:00:09.200 --> 00:00:11.680 how to make more per customer and how to keep them longer. 5 00:00:11.680 --> 00:00:15.040 And the many failures and lessons that we have learned along the way, 6 00:00:15.040 --> 00:00:16.960 I hope you enjoy and subscribe. 7 00:00:18.400 --> 00:00:23.440 What's going on everybody? I hope you are having a phenomenal Saturday. I've been very, 8 00:00:23.440 --> 00:00:30.960 very bad about, been very, very bad about my content lately and that is because I've been doing 9 00:00:30.960 --> 00:00:35.600 daily coaching with our community and so a lot of my creative output has been going there. 10 00:00:36.400 --> 00:00:42.640 But I wanted to talk to you about a cash flow process that I've been consistently walking 11 00:00:42.640 --> 00:00:47.520 through for the last couple months. Part of this started with the book that I'm still currently 12 00:00:47.520 --> 00:00:53.840 working on called building a better mall strap. And all of that is around how you can increase how 13 00:00:53.840 --> 00:00:58.240 much money you make per customer that comes into your business. And so the easiest way to know if 14 00:00:58.240 --> 00:01:02.480 you have an issue is thinking about this single question. So I'm dealing with a lot of agencies 15 00:01:02.480 --> 00:01:08.240 on our software side and what I'm essentially walking them through is a cash flow quadrant, but not 16 00:01:08.240 --> 00:01:13.200 the same cash flow quadrant that you'd have in like Robert Kiyosaki's rich debt port ad, but a cash flow 17 00:01:13.200 --> 00:01:18.960 quadrant for how you can increase the value per customer. Because fundamentally it's my viewpoint 18 00:01:18.960 --> 00:01:25.840 that if a business cannot pay $100 or $200 to get someone in the door, they don't have a marketing 19 00:01:25.840 --> 00:01:31.040 problem. They have a business problem, right? They have a cash flow issue and they don't know how to 20 00:01:31.040 --> 00:01:35.120 acquire customers and make cash flow upfront. And so what I'll do is I want to walk you through 21 00:01:35.120 --> 00:01:39.520 the four step process that I look at when I'm looking at a customer that's coming in the door. 22 00:01:39.520 --> 00:01:43.360 And that doesn't matter what they're coming in on. They could come in on a free offer that 23 00:01:43.360 --> 00:01:48.320 come in on a low-barrier offer like a a new client special or something like that that's a $29 24 00:01:48.320 --> 00:01:52.400 thing, $200 really matter, or it could be a straight-up value offer where there's no discount, 25 00:01:52.400 --> 00:01:58.080 whatsoever, there's no free, no nothing, simply value being provided. So there's fundamentally the 26 00:01:58.080 --> 00:02:03.040 three types of offers that exist in the marketplace, free discount and value, right? But all of them can 27 00:02:03.040 --> 00:02:09.280 still lead to the same abstract, right? And so the first thing that I'll look at is products, 28 00:02:09.280 --> 00:02:14.480 right? Is there something that we can add on in this sales choreography when someone comes in the 29 00:02:14.480 --> 00:02:21.200 door? So we can immediately add a product purchase to bolt on to an initial service package, right? 30 00:02:21.200 --> 00:02:26.400 So an initial service package could be X period of time, X number of sessions or a single session 31 00:02:26.400 --> 00:02:31.120 done at a discount or even a single session free like an evaluation or whatever, right? The point 32 00:02:31.360 --> 00:02:34.880 is in this works in any industry, right? You could come in and obviously in the gym and fitness 33 00:02:34.880 --> 00:02:39.760 space, the next natural sell for products would be supplements, right? If you were in a car 34 00:02:39.760 --> 00:02:46.960 practice clinic, the next natural sale might be orthotics or a special pillow or some sort of brace 35 00:02:46.960 --> 00:02:50.720 or whatever, right? It's a physical product and can immediately purchase from you at a very high 36 00:02:50.720 --> 00:02:56.240 margin specifically to go with the service that you're also selling them. Another example might be 37 00:02:57.040 --> 00:03:02.800 if you're in the beauty space, you might sell masks or serums or creams, all of those things 38 00:03:02.800 --> 00:03:08.080 would be the first quadrant of how you can increase how much you make per customer, right? So let's say 39 00:03:08.080 --> 00:03:11.600 I'm going to use a hundred dollars of the average. Like if you can't pay a hundred dollars 40 00:03:11.600 --> 00:03:15.520 for every person who walks in the door in your marketing, then you're not going to have a business, 41 00:03:15.520 --> 00:03:19.040 right? You can't make a hundred dollars on a customer's coming in in a service-based business, 42 00:03:19.040 --> 00:03:21.920 you're not going to succeed and has nothing to do with your market. It's because you don't have 43 00:03:21.920 --> 00:03:26.960 this process down. So even if they come in for free, boom, you sell 100, 200 dollars per person 44 00:03:26.960 --> 00:03:31.280 in product. All right, you've already broken even on that. But if you still want to really beat 45 00:03:31.280 --> 00:03:36.080 and dominate everyone in the market, you go to the second quadrant, which is how can I get them 46 00:03:36.080 --> 00:03:42.560 to add on additional services, right? So this might be introducing them to upsells within your 47 00:03:42.560 --> 00:03:47.360 core offer. So if you were a facility, a gym facility, for example, you might have your large 48 00:03:47.360 --> 00:03:52.880 group training, but you might also have accountability, nutrition coaching, semi-private training, 49 00:03:52.880 --> 00:03:56.960 all of this, things would be add-ons to the initial core offer. All of this will increase the 50 00:03:56.960 --> 00:04:00.720 average lifetime value and investment of the new customer that's coming in, which allows you to 51 00:04:00.720 --> 00:04:06.480 make more money, all right? That's in a gym space. If you were looking at a med spot, someone comes 52 00:04:06.480 --> 00:04:12.480 in for a Botox treatment or whatever. First thing you're going to do is try and get them to buy a 53 00:04:12.480 --> 00:04:17.600 package that's more of the same thing, but then also give them what I would consider a menu close, 54 00:04:17.600 --> 00:04:22.800 which is let me show you what other things we have to offer. We have CoolSculpting, we have 55 00:04:22.800 --> 00:04:28.000 Filler, we have MicroDermabrasion, we have SkinTitling, we have whatever, right? All of those things 56 00:04:28.000 --> 00:04:34.000 would be showing them what other services and offerings you have for that exact customer so that they 57 00:04:34.000 --> 00:04:37.920 can, so that they can become more value to you and that you can become more value to them, right? 58 00:04:37.920 --> 00:04:43.520 So cashflow quadrant number one is product, cashflow quadrant number two is add-on services. 59 00:04:43.520 --> 00:04:49.280 Number three is more for somebody who's more capital constrained and wants to make more money for 60 00:04:49.280 --> 00:04:54.960 a customer upfront, you can add-on prepaid or financing. And so if you're in a really 61 00:04:54.960 --> 00:04:59.200 established industry, you can get financing companies to do this where your care credit is massive 62 00:04:59.200 --> 00:05:03.200 in the healthcare industry, people get, you know, get boob jobs, financing and anything finance 63 00:05:03.600 --> 00:05:08.560 care credit, right? If you can establish that in your business, you can get, sometimes half or 64 00:05:08.560 --> 00:05:14.960 more to finance the packages that they may have purchased from you. So the third piece there is 65 00:05:14.960 --> 00:05:20.560 just simply asking and offering a 10% discount to get someone to prepay, and there's a key note 66 00:05:20.560 --> 00:05:24.320 there, you don't say paying full use, someone offers someone to prepay, that's the language around 67 00:05:24.320 --> 00:05:31.280 that, to drag some of that revenue upfront or sort of cash upfront so that you can further liquidate 68 00:05:31.360 --> 00:05:35.920 the cost of acquisition. Now let me show you how powerful this is with a single math example. 69 00:05:35.920 --> 00:05:40.960 If you have 10 people who walk in your door and let's say you sell five of them, all right, 70 00:05:40.960 --> 00:05:46.960 and one of those five does a prepay on your service, right? And let's say everybody else averaged 71 00:05:46.960 --> 00:05:56.560 out to $500 for the initial purchase, but one of them paid $2,500, right? That $1,500 sale 72 00:05:56.560 --> 00:06:02.000 increases the average ticket from $500 to $1,000 across all of the customers that you had in the door. 73 00:06:02.000 --> 00:06:06.800 So even if a small percentage take that offer, it can be a massive increase in the average order 74 00:06:06.800 --> 00:06:11.280 value, average cart value, average cash per show, whatever way you want to call it, and can change 75 00:06:11.280 --> 00:06:16.720 the game in terms of how you can acquire customers and beat out the people in your competitive space. 76 00:06:16.720 --> 00:06:22.160 All right, so I want for, I've said three so far, so product is number one, add on services number 77 00:06:22.160 --> 00:06:26.560 two, getting people to prepay for services that are happening in the future, number three, 78 00:06:27.520 --> 00:06:33.440 and then number four is continuity. So is there a way that we can also tie continuity into this 79 00:06:33.440 --> 00:06:38.960 acquisition process, right? So I'm going to, I'm going to not do the gyms because everything I do 80 00:06:38.960 --> 00:06:44.160 is about gyms. So I'm going to try and apply this in a different setting. So let's say we have, 81 00:06:44.160 --> 00:06:47.600 I mean, a med spa is an easy one to use because it's broken up. So someone comes in for a discount 82 00:06:47.600 --> 00:06:52.000 botox, right? First thing there, they might not make that the surgeon or the med spa center might 83 00:06:52.000 --> 00:06:55.840 make a lot of money that first transaction. They might make a couple hundred dollars, but that should 84 00:06:55.840 --> 00:07:01.680 at least cover the cost per show. The next thing they're going to do is give them products, right? 85 00:07:01.680 --> 00:07:06.400 The products that are going to go with that might be the serums, the max at home, because 86 00:07:06.400 --> 00:07:10.640 anything that someone's coming in for there wants to look younger and more beautiful, right? And so all 87 00:07:10.640 --> 00:07:15.520 all the products that would go along with that would immediately be sold from like a take home kit 88 00:07:15.600 --> 00:07:18.400 standpoint, like if you want to maintain these results or extend these results, you should have 89 00:07:18.400 --> 00:07:23.280 these things. The next would be our menu close, right? Do you want to do microdermaration? You 90 00:07:23.280 --> 00:07:27.920 want to do the cool sculpting? Do you want to do filler? Whatever, right? Then we're going to 91 00:07:27.920 --> 00:07:33.920 prescribe a package that's going to be their total beauty package, which might take six months 92 00:07:33.920 --> 00:07:38.240 or whatever to get them to where they want to be. And then the continuity that we're going to 93 00:07:38.240 --> 00:07:43.200 tie into this is a process that I like to call downselling the upsell, all right? And so what that 94 00:07:43.200 --> 00:07:47.200 is is typically you want to have people pay more in the beginning because it costs more to 95 00:07:47.200 --> 00:07:51.200 require customer to cost more to onboard a customer that does to maintain a customer. And so if 96 00:07:51.200 --> 00:07:54.880 we're getting more cash up front for these customers, they're going to be more invested in our 97 00:07:54.880 --> 00:07:58.960 process and it also allows us to cover the overhead of getting them activated, getting them onboard 98 00:07:58.960 --> 00:08:04.400 and giving them a great experience. But then you can simply offer them the same thing that they've 99 00:08:04.400 --> 00:08:10.400 been getting, but just on a recurring basis and do it at a pretty decent discount and most people 100 00:08:10.400 --> 00:08:14.720 will jump at that offer. What it does is then locks that person into regular recurring cash flow 101 00:08:14.720 --> 00:08:18.480 for the business and then massively extends the lifetime value of the customer. 102 00:08:20.880 --> 00:08:24.640 Hey, Mozanation, quick break just to let you know that we've been starting to post on LinkedIn 103 00:08:24.640 --> 00:08:28.400 and want to connect with you. All right, so send me a connection request and note letting me know 104 00:08:28.400 --> 00:08:32.000 that you listen to the show and I will accept it. There's anyone you think that we should be 105 00:08:32.000 --> 00:08:36.960 connected with, tag them in one of my relay list posts and I will give you all the love in the world. 106 00:08:36.960 --> 00:08:38.080 All right, so let's get back to the show. 107 00:08:41.600 --> 00:08:45.360 And so I'm going to walk you through one single math example and then I'll sign off, but hopefully 108 00:08:45.360 --> 00:08:50.400 you can look at that quadrant with you in your existing sales process and say how can I implement 109 00:08:50.400 --> 00:08:55.760 each of these four things into the sales choreography in my business so that I can outspend my 110 00:08:55.760 --> 00:09:01.440 competition so that I can spend $500 per person who walks into a $1,000 per person who walks into 111 00:09:02.000 --> 00:09:06.960 and the reason that's so important is because if you can get that cash per show high enough, 112 00:09:06.960 --> 00:09:11.680 then you can spend on multiple different channels of acquisition. You can have referral partners, 113 00:09:11.680 --> 00:09:16.640 you can have you can have cold traffic, you can have affiliates, you can have all of these 114 00:09:16.640 --> 00:09:20.880 different venues, you can have you can have direct mail, you can have social media stuff, you can 115 00:09:20.880 --> 00:09:24.560 like all of these different venues cost different amounts, but at a certain point all of them become 116 00:09:24.560 --> 00:09:29.280 affordable and that is what unlocks the huge amounts of growth that are available for a business owner 117 00:09:29.280 --> 00:09:33.280 and it comes from the back, not the front. And so everyone thinks they have a marketing problem, 118 00:09:33.280 --> 00:09:38.240 but typically it's because they have a monetization issue, they're not good at cash flowing or 119 00:09:38.240 --> 00:09:46.080 choreographing the money that they're making per customer, right? So to bring this all home, 120 00:09:46.080 --> 00:09:50.080 what we're trying to figure out is how much can we make up front in the first 30 days and then 121 00:09:50.080 --> 00:09:54.560 what's the lifetime value, the customer? The cash value for the first 30 to 60 days is going to be 122 00:09:54.560 --> 00:09:59.520 important for how you spend money to get them in the door. The lifetime value on the back end is 123 00:09:59.520 --> 00:10:02.720 going to be how much money you're going to be able to extrapolate and how much revenue you make per 124 00:10:02.720 --> 00:10:07.920 month based on your sales volume. So for example, if you sell 20 people every single month and you 125 00:10:07.920 --> 00:10:15.840 know that your lifetime value per customer is $2,000 total and you sell 20 customers per month total 126 00:10:15.840 --> 00:10:21.520 that it means that your business should cap out at 20 times 2000, which would be $40,000 127 00:10:22.160 --> 00:10:25.920 and that's an easy way to back into like if you feel like your business has not been able to grow, 128 00:10:25.920 --> 00:10:29.920 it's because one of two to two numbers either you're not you're not capturing enough on the back end 129 00:10:29.920 --> 00:10:34.800 or you don't have a big enough inflow that is it. That's all there is to it. You can massively simplify 130 00:10:34.800 --> 00:10:42.000 this. Now if we're looking at trying to back into that number, so let's take a business A that can 131 00:10:42.000 --> 00:10:46.640 only pay $100 per show, which means they're not making a lot of money. And then option B is we've 132 00:10:46.640 --> 00:10:52.800 got a business that can pay $1,000 to show. Let's see if we can reverse engineer $1,000 per show 133 00:10:53.680 --> 00:10:58.000 into a business model. So if someone comes in and let's make it an attractive friend and offer, 134 00:10:58.000 --> 00:11:04.160 let's make it a let's make it a $19 new client special, whatever, right? Evaluation. It doesn't 135 00:11:04.160 --> 00:11:07.760 really matter what industry it is. It works the same way. All right. So someone comes in for 136 00:11:07.760 --> 00:11:13.200 a $19 thing they show up. All right. From there, let's say that we know that we're going to close 137 00:11:13.200 --> 00:11:19.840 half onto the next service package, right? Now that next service package, let's say the average 138 00:11:19.840 --> 00:11:23.760 is going to be $2,000. All right. Now that's going to be over an extended period of time. 139 00:11:23.760 --> 00:11:27.520 Cool. Let's say that our minimum that we can get down is $500 because that's what we say is 140 00:11:27.520 --> 00:11:32.000 minimum in order to buy it. And that's why we're closing half and not 100%. All right. The next thing 141 00:11:32.000 --> 00:11:38.240 we do is we sell $200 per customer. Now if $2,000 was with the packages and we closed half, 142 00:11:38.240 --> 00:11:42.800 we're at $1,000 in lifetime value. All right. Just from that first transaction, half times 143 00:11:42.800 --> 00:11:48.800 2,000 is 1,000. All right. Now of all those people that say yes, now let's say we sell each of those 144 00:11:48.800 --> 00:11:55.520 people $200 for the product. All right. Now we added $200. Now we're at $1,200. Lifetime value. 145 00:11:55.520 --> 00:12:03.680 Then let's say two out of those five people that we, that we sold for example, decide to add on 146 00:12:03.680 --> 00:12:09.040 an additional $1,000 for the services. All right. From your other service offerings that you have. 147 00:12:09.040 --> 00:12:18.160 All right. So now we've got two fifths times 1,000, which would be $400 that we add again 148 00:12:18.160 --> 00:12:25.120 to the customer. So now we're at $1,600 per show. All right. And then again, on the back of that, 149 00:12:25.120 --> 00:12:32.240 we say, hey, we know that from every of the five that we have, we can get let's say another two 150 00:12:32.240 --> 00:12:38.960 to sign on to continuity at $200 a month and we turn out at 10%, which tax another $2,000 151 00:12:38.960 --> 00:12:43.680 on to two of those customers. All right. And so that would add yet another 152 00:12:45.920 --> 00:12:53.840 $800 on top. So you get $2,400 per person that walked in the door for a free offer. All right. 153 00:12:53.840 --> 00:12:59.040 That is how you can beat everyone in your marketplace is that you consistently execute the 154 00:12:59.040 --> 00:13:05.680 process. Right. That means every single time you have a choreographed handoff between service A 155 00:13:05.680 --> 00:13:10.160 or service one and sale number two, sell number two and sell number three, sell number three and 156 00:13:10.160 --> 00:13:14.640 sell number four. And if part of you is like, man, I feel like I'd be selling all the time. Yes, 157 00:13:14.640 --> 00:13:21.280 is the answer. But but the secondary correlate to that is that if you look at the research that 158 00:13:21.280 --> 00:13:27.920 exists on how to maintain a customer over the long haul, it's about expansion revenue. It's about 159 00:13:27.920 --> 00:13:34.080 ascension. It's about selling them more things over time so that they can continue to be reminded 160 00:13:34.080 --> 00:13:39.440 of the value that you provide because over time, people always want new things. And so it is your 161 00:13:39.440 --> 00:13:45.280 duty if you believe in the value that you provide to make the offers to those people and communicate 162 00:13:45.280 --> 00:13:51.120 that process in a seamless way so that every part of your business knows my objective is basing 163 00:13:51.120 --> 00:13:57.600 the baton from point B to point C, from point C to point D. And all of that choreographed process 164 00:13:57.600 --> 00:14:02.480 ultimately results in a front end that allows you to spend whatever you want for a customer 165 00:14:03.200 --> 00:14:08.800 because your back end is so strong. And that process, that cash flow quadrant is the reason that 166 00:14:08.800 --> 00:14:13.680 Jim launch has been able to stay number one in this industry despite the saturation, despite 167 00:14:13.680 --> 00:14:18.720 the charlatans, despite the many people who would claim that they're doing the same thing, 168 00:14:18.800 --> 00:14:22.640 but they're not because they don't execute that process. And at the end of the day, 169 00:14:23.360 --> 00:14:27.200 what you are always going to be paid for is the value that you can create the marketplace. 170 00:14:27.200 --> 00:14:31.360 We've been able to choreograph that process for the businesses that we serve so that they make 171 00:14:31.360 --> 00:14:35.520 more per customer and so that their customers are better served. And that's ultimately what you have 172 00:14:35.520 --> 00:14:38.800 to do, what we have to do is entrepreneurs and business owners is how can I serve my customer 173 00:14:38.800 --> 00:14:43.600 in the highest investment degree ever? And how can I do it in a seamless way as possible so that I 174 00:14:43.600 --> 00:14:50.400 can have as little operational drag as possible so that I can out market my competition and continue 175 00:14:50.400 --> 00:14:58.960 to play the game? So, anyways, that cash flow quadrant is how I think through the choreography 176 00:14:58.960 --> 00:15:05.840 around creating selling systems so that our gyms and our businesses can beat out their competition. 177 00:15:05.840 --> 00:15:10.480 And I would encourage you to print that out, put it somewhere so you can think about every single 178 00:15:10.480 --> 00:15:14.720 sales process that you have through that lens. And I guarantee you that you'll make more money. 179 00:15:14.720 --> 00:15:19.360 That's what, that's what when I do my consulting days and I sell consulting hours, 180 00:15:19.360 --> 00:15:24.000 this is the process that I walk those business owners through. And nine times out of 10, 181 00:15:24.800 --> 00:15:29.200 we can almost double or triple the amount that they make per customer simply following that process. 182 00:15:29.200 --> 00:15:32.720 So, hope that was bad before you. I hope you have an amazing Saturday. 183 00:15:32.720 --> 00:15:36.320 Execute that, make more money, serve at a higher level and crush it. Lots of love. 184 00:15:36.320 --> 00:15:46.320 Catch you soon. Bye!