Thursday Mar 31, 2022

Cheap clicks are the worst clicks EP - 023

Listen on:




Blake Beus  0:01  
And we're good ready to go? Let's do this. Alright, so I'm going to start off with just Yes. Just asking you asking you this directly.

Blake Beus  0:12  
We've all had this clients come to us say I want the cheapest traffic possible. I like where can I get my cost per click as low as possible? And and how can I spend the least on ads as possible? And that seems like a simple question with a simple answer, but it's not. We were talking about that and why?

Greg Marshall  0:35  
You just told me. Yeah, this may be not a good idea to look for the cheapest traffic it Yeah. So in fact, I think it's a, in most cases, it's a bad strategy. Not every case. But most and the reason for and I think it also depends on your industry, but usually there's a direct correlation with the costs for traffic or cost per lead, and the quality of leads. So think of it like this, if you want, because I get this from clients a lot. And I know you have to where clients will say, I want to only target people with money. Right? Okay. You go. Yeah, well, of course, so does the rest of the world. Yeah, business. Everyone wants that client that will spend the most money without thinking about it. Right. So what what does that mean? That means everyone's going after that person, which means all these work and auction, you're going to be spending more money, yeah, per click. And your CPM, your cost for the actual impressions will be much higher. With that being said, you should actually look at that as a positive side. Yeah. Because if you can make those higher cost per clicks, higher CPMs work, you're going to I mean, your conversion rate is going to be high. And if you have a good lifetime value and customer is going to be worth it. The math works out. It's just a lot of times we become obsessed with the cost per whatever we're doing right? At almost at the detriment of how quality those are. Right, right. If I got you 100 leads for $1. Or I got you two leads for $50. You spent 100 bucks on each, but one of them gets zero conversions, and the other one gets one for $10,000. Which, which one would you prefer the one for $10,000 every time every time but what happens and this goes into something that we've talked about? What happens is businesses don't know their numbers. And so they actually just use other people's kind of results to like gauge them on what they should be doing. But they don't even know their own business numbers. Yeah. On whether they should be trying to scale or if they're winning if they're losing.

Blake Beus  2:50  
Right. Right. Well, I think one of the key things I want to pull out one, one phrase you said in there is, you basically said if if you have a high lifetime value for your customer, and that's, in my mind, whenever I've had this conversation with any clients, or anybody talking about advertising, it always boils down to lifetime value. And usually, people aren't thinking super long term when they're when they approached me with this specific question, I want the lowest cost traffic, lowest cost per click possible. They're not, they're usually not thinking long term. And I oftentimes will tell them, well, it's usually easier, more profitable and less stressful to increase the lifetime value of your customer base than it is to go try to find the cheapest traffic possible and make that profitable. Yep. And, and so people tend to have that backwards just a little bit. So one of the things I liked to talk about with them was depending on the model, how can we increase that lifetime value, so that we can spend the most per click out of anybody out there out there in the industry? Because if we can be insanely prospect profitable to a point where we can spend more money than anybody else on each click, then you win every pain out there.

Greg Marshall  4:12  
Well, and the other thing is this, the competitive advantage is, everyone else doesn't have the stomach. If you do to pay that cost per click yes, they're focusing on how do I get a lower cost per foot versus how to get a higher lifetime value. So what ends up happening as it almost becomes a game of like, who can outlast the other? So it's like, can I deal with a $30 cost per click longer than my competitor can like, does that make them nervous? And they stop? Yeah, and I keep going right? If I keep going? I win. Yeah. Yeah. Because I know they're going to be thinking about how do I get cheaper cost per clicks, which that's really the wrong question asked and this what drove me to this thought was actually I had a conversation with a client yesterday. And he was he right now he was getting, he was slightly profit on new customers coming in. And he was actually asking, which is good, right? He was asking me, How do I get more customers? My response was, spend more No, right. But he was well, I don't know if I want to do that I want how can we get the cost per purchase? To go down? Right? And I said, Well, why would you be worried about that? If you're not? Like, if you're actually slightly profit on the front end? What is your concern? Your real job is not to be profitable on the first time customer, right? Your real job is to build a business. And there's a difference between customer acquisition and a business. Right, see a business's think of Starbucks, Amazon, you think they you think they're trying to get new customers for $1? And trying to make money off that? Absolutely not? Because that would actually cause them not to be some of the richest companies in the world, right? Because their lifetime value, they want you to buy coffee forever. They consider customer acquisition and expense. Right? They don't plan on making money on customer acquisition. All of their marketing and advertising campaigns are not to make money on new customer acquisition. Yeah, in fact, anyone who tries to make money on new customer acquisition will be small and stay small forever, right? Because there's basically it's, it's, it's a myth, it's a fantasy. And what what actually triggered this conversation, which I thought was funny, because I was like, Okay, this gives me a glimpse into the mindset of how some businesses or maybe many businesses are actually viewing this. So he had told me, yeah, I spoke to someone and like, shouldn't we be getting cost per purchases? And this is on a $75. Okay, shouldn't we be getting cost for purchases at like, $3 $2? Maybe? And you laugh, because he could see how ridiculous That's right. Yeah. And I was like, in my past, I'm trying to get better at this. Basically just telling people, no, that's not gonna work. So can we get it for two or three? I mean, instead of and right now we're paying off of purchase at 25.

Blake Beus  7:29  
Okay, for 75? For seven, yeah, I'd

Greg Marshall  7:31  
be I'd be thrilled with those results. That's, that's, that's a 3x return on the cold new first. That's insane. Like, that's really good. So that's working right. Now. The question was, well, how do we get it to $3 a forearm and basically says we don't, right, and it won't happen? Or if it did, you can't scale it. So I said, whoever is telling you that you can do that is probably only sharing the numbers of like how much you can get an existing customer to reconvert. While simultaneously using a tiny budget. Yeah. So if you spend like $5 a day, you can do that. But

Blake Beus  8:11  
but it's not sustainable. You might have one day where you do that. But the next day, you might not you might have like four or five days, because you're just not reaching enough people exact right. So if you do get one purchase on that one day, they will be like, Hey, I got a $75 purchase for three bucks. Yep. But that's not reality.

Greg Marshall  8:29  
Well, and something that the light bulb went off in his head when we were speaking, which I thought was like, Okay, I need to keep it actually helped me because I was like, I need to communicate this harder to people. So they understand that they're actually missing out on opportunity. I said, So, if you're spending $5 a day, you're getting that return. But you know, you're only reaching What 500 People was on 300, maybe? Maybe 1000,

Blake Beus  8:56  
maybe, maybe 1000. It may got really good CPM, right? But most likely not. No. I said, there's absolutely no way you can ever scale that particular result that audience because it's too small. So you couldn't spend $5 a day and jump it up to 50. Because then it would just, you would have no return or negative returns because you'd be spending way too much for that size of audience. And for me, I always think, okay, so you want let's make the numbers easy. You want you're getting a $25 cost per purchase on a 75? Well, let's make it $100 product. Let's just make this really easy. Okay, so $100 product, you're making 20 $25 cost per purchase on $100 product, and you want that down for let's say $10. Yeah, right. What you're really asking is how can I get a 10x return on this investment? Not how can I get a cheaper cost per purchase? The real result is How can I 10x my money here? Yeah, and the answer that is well, let's come up with some additional products and service Just to offer people that have already purchased, you already paid the $25. Yep. For that $100 purchase, if we want to Tenex that, how can we turn that, that customer now into a $250? Customer, and now we've text, exactly, we didn't compromise our customer acquisition? It's right. And so that's really what people need to think about. And a lot of people look a lot of businesses there, this is maybe falling out of vogue right now. But there were a few years ago, there were all these, like, find my $1,000 course. And we're going to show you how to how to how to how to, you know, 5x, or 10x your ad spend on a product or whatever, right? And, and the reality is, if that's all you're thinking about, you're not building a business that's going to last and you're building a business that's completely dependent on this one advertising strategy. And as soon as the algorithm change, or as soon as some competition hits, you're going to struggle, because real businesses focus on customer acquisition, and then long term sustainability, revenue, sustainability and customer value, then just the initial sale, the initial sale is like I said, an expense. It's not a business. Yeah. And the other thing is this. And he made me think of a phrase you could tie with that. So if you're wondering, how do I get a cheaper cost per purchase? What you're really asking is, how do I make my business smaller? Because what in order to achieve that you would have to niche your audience down so small, that you're only talking to the absolute, hottest audience, which is only so big, right? And you'll burn through that audience pretty fast? And and then where do you go from there? And to kind of expand on that? If you have any aspirations of doing $10,000 A month or award sales? On your online store? You can kiss that goodbye? If you're trying to get 10x. Yeah, trying to get on Excuse me, excuse me, you're trying to reduce your cost per purchases to a number that's so low, right? You could forget about ever exceeding $10,000. Absolutely. Now, that being said, it's still a worthwhile exercise to say, can we find a way to take this existing campaign and get a little bit better cost per purchase. And that's where split testing comes in, where you start testing different creatives, headlines, different videos, maybe change up some wording on your landing page, or something like that. Or maybe you tweak the offer just a little bit to sweeten the pot? Yeah, all of those things can reduce your cost, cost per purchase. But it's also a realistic thing. Basically, all you're doing is you're playing around with your customer acquisition costs, and trying to onload onboard as many people as you can into your business. But you got to be reasonable, you're not going to get those cost per purchase for a buck. And you're able to spend, you know, $20,000 a month on advertising issues and maintain that you can't it's just really, I've never really been one to say something's impossible. Yeah. But I feel pretty confident about that one. To get, you know, $5 $3 purchases on especially anything 24 hours or more, at a big scale is going to be very challenging, right. Borderline boss. Yeah, that's, that's basically what I want to say is, if you want more stability,

Greg Marshall  13:37  
don't play that game. Yeah. Play the How can I increase my repeat purchases? Faster? More regularly? How can I get one customer by every month, several times a month? In three days? Buy more? How can I upsell them at the point of sale, play that game, right? Instead of lowering cost per purchase, because that will be literally like a hamster wheel. You will just be running on this wheel in search. It's like you're in search of gold, right? Like you heard that there's a treasure map somewhere. And that there's gold that you can find the promise it might be out there, but it may take your whole life to find it.

Blake Beus  14:15  
And you might even hear a story. You might even hear a story of someone that did that. Yep. But the thing is, is oftentimes those are the statistical outliers, the anomalies that that they themselves probably couldn't even repeat that it's it's, I wouldn't say winning the lottery or whatever. But it's you said Gold Rush, right. Like you had a gold rush. You had all these people had out to you know, California looking for gold. And the reality was, is that a handful of people that were there at the right place in the right time. did make a ton of money. Yep. But the people that made consistent money were the people that sold the shovels. So the equipment provided provided the tools and things for long term sustainability on They're on their business. So yeah, I mean, I did want to talk really quick about cost per click on Google search results within, if you want to move on, I would love to talk about different ways people can expand maybe a little bit more detail, their average customer value. So cost cost per click, like a lot of people, especially when they start hopping into Google Search Ads. They're blown away. They're like, I'm spending how much per click in Facebook, I'm spending it to $2 per click. But in Google, I'm spending 20. What what is with that? And it's it's a different methodology. And we've talked about this before, where we've talked about intent, yes. And Facebook is, if you see something while you're scrolling through your feed, your intent is passive. Like, you might have a passing interest in whatever is going on there. When you're doing a Google search, and looking for something specific, and you see those click Results, your intent is very high. If I'm hopping in there, I'm searching you know, roofing guys in northern Utah. Yeah, I'm ready right now to get some quotes on my roof speak to some Utah roofer. And that intent is good and, and the profitability for roofing company. I mean, I had my roof done a couple years ago. And it was almost $20,000 for them to do the roof. And so you're thinking, okay, yeah, they have some overhead material, whatever, but the profitability on that is easily worth a $50. Click. Yep. Right. Like if they can get their $50 Click for a free consultation, they'll drive around out there the same day. I mean, we had someone come the same day, I scheduled a consultation. And they showed up and gave me an estimate, looked at everything showed me the damage took pictures. I mean, they really treated us Yeah, because they knew that that would be a profitable thing. So the cost per click is extremely relative based on intent, and profitability and things like that.

Greg Marshall  17:03  
Well, the other there seems to be a correlation also, with, and I've tested this a lot. So the cheaper leads seem to not like I've heard people on Facebook, right? But hey, when I do Facebook, lead ads, I can't ever get ahold of people, or I'm getting leads from Facebook, but for some reason, they're not working. Right. And you hear that, and you and you go Alright, well, they're usually getting leads at $5 or seven $8. Right. But then if you get the leads that cost 50 100. Those people almost always answer the phone and agree to do an appointment. Yeah, almost always like not kind of, almost always. So you can almost make the correlation that the more money you spend to acquire the lead, the higher likelihood that person will get on the phone. Or meet you in person. Yeah. And the lower you spend, right, so the

Blake Beus  18:10  
you know, let's say you get the $2 leads or whatever, you're not going to get all in because that's almost like a direct reflection of how committed that lead probably actually. Right. Right. And I've got a personal experience with this. Right, like, so I have my SM three group, it's a monthly membership. And then the the very first product launch was my social media content plan. And I used to sell it for almost 50 bucks. And and we just ran cold traffic ads to that, Greg, that's when you and I started working together brought you in because I was like overwhelmed and stressed about everything. And, and that was going good to competition, hit algorithms changed all that stuff. So we kind of switched up the offer and came up with this monthly membership, which is super great. But then I took that $50 product and switched it over to a free lead, right to just get people on my email list and try them and try to market to them. And I was getting leads for 50 cents lower than my cost per click on the purchase outs. Yep. And I didn't have a single one of them convert. I spent several $100 to test that out. Not one of them converted they and in fact most of them unsubscribed after everything. So it was like okay, well, that didn't work. But it's it's true. Sometimes the cheaper it was it was a really juicy lead. And I think that's why I was able to get it so fast. But none of them converted over to the monthly membership. My other customers that paid me the $50 and then I email marketing to them. They hopped over and join the membership. And so it's all about kind of playing around with that and making sure you're getting the people with the right intent and align up to the correct people. But that initial offer was one that people were like, well, I just want this I'll just put my email in here and then get this thing for free and it's good enough and I don't need to do anything else with it. You know, Blake and this or whatever

Greg Marshall  20:02  
I think to to, and I fallen victim to this thinking just like anyone else, right? Where initially you think you talk to clients and everyone, you want to give them what they want the cheapest lead the cheapest color for this. So you go okay, well, we'll do that versus saying, getting their mindset to change to go. Are we here to build a business? Are we here to try to, you know, try a fad? Yeah, right? If we're here to build a business we should be looking at these are, how we're doing everything different, right from the quality of the lead up front, to how we can upsell them to the lifetime value verse and let's not worry so much about a cheap lead or cheap foot. And let's worry more about a quality, the higher quality leads and the higher quality prospects because I can tell you right now, I remember acquiring a customer I was talking about right for him. I believe his acquisition cost was about $600 to get him. This is like four years ago. Yeah. And he's been with me since Yeah. So for four years, and he's been paying me a lot of money. So that $600 was well worth it. I've gotten leads where they were well, cheaper than that. Yeah, that they stay on for one month, or they're not that serious or whatever. And they're done. Right. So there's a Yeah, you get what you pay

Blake Beus  21:33  
for bases. Really, it really is that and it is interesting, one other anecdotal thing, and then we can move on to how to increase the lifetime value. Or do you remember when we decided to do a flash sale on my $50 product? Right? We did this flash sale for three days, and we bumped it all the way down to seven bucks. Yep. Right. And on cold traffic at a $7 price point. We did a 2x row as on cold traffic. For those three days, this flash sale. And I was thinking great. Well, maybe this is something we could do. Yep, long term. I had way more my my refund requests, as a percentage went up by about 30 or 40%. Because, frankly, they're just cheap. Yeah, customers. Yeah, they're, they're not the quality of customers that I wanted. So people were spending $50 for this thing, but those that converted at seven, were way more picky. And only it picked every little thing about it and said, Well, I didn't like the design or whatever. So refund me. And it says it was a Digital Profit got to keep it for free. So I had a lot of people do that way more than I did when I was selling it for 50. Yep. And so honestly, a lot of the times the cheap customers are the worst customers. Oh, no doubt. It's not even a lot of times, I would almost be like 99.9% of the time. Yeah, that's what it is. Yeah. And it was a headache, trying to refund all those requests, and everything was just like, oh, my gosh, this is a customer support nightmare, because I went after the wrong people. Yep.

Greg Marshall  23:05  
And so that's really, so really the goal is to think about maybe flip flopping. How you design your business, right? So designed to where the acquisition costs is moderate, to hire. So you can because what that would be communicating as you're targeting a higher quality product or prospect, because the higher costs are going to come from, hey, I want to reach, you know, a woman 35 to 44, who likes to exercise and it makes this much mind. That's very expensive to reach him. Right. And that's good. Because we want that person, right? It's versus a lot of advice. And like I said, I've fallen into this too before, a lot of advice people are getting, how do we keep driving costs down? Well, here's a simple way just broaden your audience. Yeah. And you'll lower your costs. There you go, right, just have no charge. But the problem is, what type of persons actually coming in? Are they the right fit for your business? Or your product? Right? Probably not. Right? So. So just don't fall into that trap? which like I said, I have been guilty of this before.

Blake Beus  24:10  
Yeah, it's easy. It's easy to follow. And it's easy to look at your ad expenses and think, Geez, especially when you have like two or three days where some oil changes and you're you're not you're not even making money on ads, yes, to make money on. It's easy to freak out and say okay, what's what's, you know, let's, let's lower the cost. It's easy to shrink. Yes. So easy to shrink. Absolutely. And something that you just pointed out to me which could almost be like a philosophy would be almost the higher your costs for acquisition and CPM. The more I guess, stable your business can be Yeah. Because what that basically means now is that the prospect and buyer higher quality but the other thing is when you have it set up that way.

Greg Marshall  25:02  
Like we talked about earlier, it other people aren't going to be they're not going to feel comfortable paying that. Right for a long time, most people, right. And so you can almost say like, if it's costing a lot, I mean, a safer space. Yeah. Then if it's costing really cheap, because if it's really cheap, the gold rushes are all going to come in and be running, you know, products and things and offers exactly the same as yoga. And then all it's going to happen is now the market of people that you're going after are going to expect unrealistic things. So then becomes a race to the bottom. Yes, well, my product is cheaper. Well, this person said that they give me 10 programs for $7. And you're only doing eight, and it becomes this race to the bottom. It's, in my opinion, I don't believe most business owners get in the business to be to join that race. I think they have the opposite. That's what they do.

Blake Beus  26:00  
And I think it's like a panic reaction like a reactionary, reactionary thing. And let me pull what you said in a different way. If you want to be able to run ads and sleep at night, without getting stressed about your margins, find a way to be profitable at a much higher cost per acquisition, because then it's like, okay, you're you're profitable, long term, on a $50 cost per acquisition. If it goes up to 55, no big deal. So good, you're still fine, you're still fine. But if you're profitable at a $5 cost per acquisition, a little tiny profit, and if it goes up 10, you're you're losing money, and you're losing your shorts, and it's game over. And so you're waking up in the morning, and I've been here you wake up in the morning, the first thing you do is you check your ads manager, see how it performed overnight, see where you're at. So you need to make adjustments and everything. But if you want to if you want to be the lazy marketer, put all your time and effort into building that long term value. Yep. And then it doesn't, it doesn't matter so much. So you can check your ads every now and then. And and just kind of see if you want to refresh your creative or something, or maybe run a couple of split tests every now and then. But yeah, at that point in time, you're a lazy marketer. Yep. But you're making more money.

Greg Marshall  27:15  
I actually like how you just said that, because I think that's what everyone's aspirations actually are. You start a business not to just like live and add accounts, and market and spend 99% of your time doing it. Yeah, you start a business because really your aspirations like I want more time. Yeah, more freedom, haha, so that I can do what I want. So it would make more sense to do the exercise of what's the highest my acquisition costs could be and be sustainable, meaning you should do the exercise of if my acquisition costs doubled. Overnight. Could I still make that work? And how, yeah. And then when you get to that one, do it again. Yeah, I keep thinking like, Could I pay? Like, you know, I'm using t shirts, for example, right? Could I pay? Because I know my numbers. So well? Could I actually afford to pay $80? An acquisition? Yeah. And make that work? Yeah. And if you could, how would you do it? Well, I would bump maybe myself, you know, or maybe I would have an email sequence that gets that person that bought get 50% of my new buyers to purchase in seven days. Yeah. But play that game. And if you do it, you'll be able to relax more? Because they'll be like, well,

Blake Beus  28:29  
it's gonna take a while before your acquisition costs literally double overnight, right? Because that means the CPMs would have doubled, which means competition would literally have to double overnight. Well, if you're like, yeah, if your cost per acquisition is 80 bucks, right? And it doubles to 160. Something is seriously wrong. And yeah, good place, right. Like, that's not gonna happen. But if it's five and doubles to 10, that's just a glitch in the system. Yeah, like that could happen in an hour. Easy. Oh, yeah. And so. So let's take the last few minutes of us. Let's talk about a couple of different ways, realistic ways that people can increase that long term value. We've kind of hinted at them, but I think we should just draw them specifically. So you, let's start with E commerce. You just were talking about T shirts. That's an E commerce business. He talked a couple strategies. Let's dive into that for just just a little bit longer.

Greg Marshall  29:18  
So how do you increase lifetime? Yeah. So the way you do it, I precice. blue in the face is text message and email marketing. So making sure you're capturing customer information, so that you can go ahead and give them another offer? Right. That's number one. Some that's very close to as far as up there in the scale of importance. Making sure you have consistent email and text message marketing campaigns. Yes. happening immediately. So that your objective is to get them to purchase again. Yeah. All right. And then the third thing that I would recommend is, if you're an E commerce Make sure you're constantly coming up with new products to offer. If you only have five products, and you just stay with those five products, you're not going to last. And the reason is because your ads can only do so much on that front end, right, the more you scale, the higher acquisition costs. So if you're not coming out with new stuff consistently to sell to that person that's related materials, not unrelated, you're not going to be able to be as profitable you can. So make sure you're coming out with new products consistently to sell those people that are buying your front end offers, right? The other thing would be, you can increase your prices, right? You can create bundles, to get people to buy more at once. You can also create flash sales. And if you uniquely put them together, you don't have to discount your product so much. But it increases people's buy ravier, right. So these are things to really think about is making more offers to the customers you already paid for. If I simplify at all, that's how you do. So instead

Blake Beus  31:04  
of spending time in the ads manager, just making everything, spend time on improving bundles, coming up with email and text message content consistently, constantly building that email list and coming up with new product ideas. That's it. So that's where you should be spending your time now, honestly, most business owners that I've run into, that's where they would prefer to spend their time. Yeah, they get distracted by all her advertising stuff. Because those numbers are addictive. Well, not only are they addictive, but people have different beliefs about money. Yeah. Makes them afraid. And that applies everyone, not just somebody. Right, right. And so when you think about that the ads manager is the one thing where you can where you feel like you have the most control, because you can just turn it off. Yeah, your problems are solved, but at least I'm not losing money. Yeah. Where people tend to get caught up. And this is where I think

Greg Marshall  32:05  
this is where I think the real opportunity is. When I talk to clients about how easy it would be like every single time I've told a client to do this. It's work. Yeah. The customers you have if you give them another offer, your offer will be immediately profitable. Yeah, guarantee. Yeah. And every time they do it, they see these huge spikes, like, wow, I'm getting all these sets. I have one client in my mind, I'm not gonna say her business brand, so you don't copy her exact strategy. I have one client right now that whatever I tell her to do, she executes it. And she executes it. Well. She is literally she's cut her Aspen in half, just because there was an issue with her add a cow, and some frogs and stuff from someone hacked. But she cut her adspend in half. But, but I told her in order to make the main difference. You're not doing text or email. She started doing that. She's actually on pace ever biggest month this month, while spending half on Rakoff. And I said, Well, what why is that? She's coming out with new products. Oh, she's living far. Exactly. Yeah. And if clients spent more time just like, they usually get caught up, and they don't know what to say. Or what to make. Right? And that's usually why doesn't happen. But if you just take any action, you're likely your likelihood of succeeding with the current customer is super high. Yeah. Because she's not making anything like, you know, game changing. Yeah, they're just like maybe a different color of the shirt. Or instead of a T shirt is lost, or the hoodie is now available or create the same phrase at work into a dress. She's not doing anything like some huge innovation. Yeah, it's just it's incremental. Yeah, it's just give something new. Yes. Something something. Anything. Okay. Makes sense. I love it.

Blake Beus  33:58  
Okay, let's let's really quick talk about like consulting coaching professional services, what are some ways that people can improve their customer lifetime value there? Yeah. So the fastest and easiest ways to make it a recurring model, and then focus on your customer retention on that recurring model. So that's number one. Number two, could be you could raise your prices. Number three, could be you have supplemental programs to sell to these people that are related to the product that you're serving them with. Number four, could be improving your referral rate, because those referrals come in at a low acquisition cost was increases the lifetime value of the actual customer who refer a lot of people don't think of it that way. Yeah, but one customer is paying you That refers you to another person, that customer now has doubled their worth. Yeah. Or if they sent four or five now there were five times more. Yeah, because they're showing referral behavior, right. So encouraging your current customers to send referrals and then you know, You could, you could do partnerships with other people that have different products to do an affiliate that sales to your current customer base. But that's, that's essentially how you would do it is controlling pricing, putting them on recurring model, making sure they're sending referrals and then having kind of complementary programs to what you're selling. Right. Awesome. Awesome. And then let's see what's up. What's a model we haven't talked about here? I mean, those are kind of the two everything kind of lumped into one, commerce or service. You know, the other thing maybe you could talk about, you know, brick and mortar, like restaurants and things like that, which I see almost, I don't see very many restaurants using advertising. Yeah, my thought is, I've had very limited experience with restaurants. But here's my thought, restaurants are a low margin business. And so the likelihood of how they're viewing the advertising is tougher, because they're not looking at it as a lifetime acquisition, even though the lifetime value of a food customer. Yeah, have actually be super high, as long as your food is good. Yeah. Right. Because they would just keep coming. There's some restaurants I go to, over and over and over again, there's one restaurant that serves a meal that I like, you know, it's a rice of steak meal. I go there at least once a week. So think about what they're making. All right. And if they acquired me through advertising a front, it would make no sense, right? Well, if it costs you $30, to get me to come in and buy that first time last month, but if I stay with you forever, yeah, then technically that $30 is compounded Yeah, as a return. So I would think that they just need to focus on like the fundamentals of long term things, and then treat, add, create treat ads, as if they're kind of like, a billboard or something that you can't really attribute back to, because the only way you can really attribute that back to is if you give some sort of a discount coupon or whatever. So you're already low margin. So it's most like hey, just kind of do some saturation in the local market here. But focus on customer service and retention and getting people to come back, you know, once they show up in the door. I think the moral of our podcasts on the story is build your business don't only worry about acquisition and have everything else falling apart. Yeah, right. You want to make sure that you have strong systems in place a long term strategy give you a key by awesome All right, well, we're this is one of our longer podcasts let's let's wrap this one up.

Unknown Speaker  37:29  
Greg, how can people get in touch with you Greg Marshall CO and they can book a free strategy session call you can go rocking out

Blake Beus  37:36  
just like me stock calm. You can see my membership on on the page there and and we can connect through them membership. Great. Well Till next time, we appreciate it. Okay, later


Comments (0)

To leave or reply to comments, please download free Podbean or

No Comments

Copyright 2021 All rights reserved.

Podcast Powered By Podbean