The Winning Formula For Acquiring Customers Without Losing Money

By on January 24, 2017

The Winning Formula For Acquiring Customers Without Losing Money

Want more customers? Grab our proven 6 Step Predictable Selling System and never worry about where your next customer is coming from again…

What’s the most important thing in business?

Is it a great product or service?

Is it creating a market for your product or service?

Is it offering the lowest price with the highest value?

Or Is It Something Else?

A lot of analysts will list one of those factors above as the main obstacle to your success.

But here’s the thing…

I don’t think it’s true.

I might disagree with a lot of “business experts” out there, and that’s okay.

But I believe the most important thing in YOUR business is getting customers… and I’ll prove it to you in a second.

Customer Acquisition Is Key

Want to know the truth?

Most businesses can’t get a steady flow of customers.

They have a great product or service…

And they even have the right infrastructure to deliver it…

But they’re not operating at their max capacity because they can’t get customers.

Why Does This Happen?

Most business owners focus on the product or service being delivered and constantly agonize about making it better.

After all, who hasn’t heard this popular misquote:

“Build a better mousetrap and the world will beat a path to your door”

We’re led to believe that great products and services always win… but it’s a lie!

Here’s The Truth About Great Products

According to Wikipedia:

“4,400 patents [have been] issued by the United States Patent and Trademark Office for new mousetraps, with thousands more unsuccessful applicants, making them the ‘most frequently invented device in U.S. history.'”

And the most popular version of the mousetrap today? Invented in 1899!

So let’s stop pretending that great products always win.

Here’s What To Do If You Want To Succeed

Become a better marketer so you can…

  • Teach your market why they should want what you’re offering
  • Build trust so people know you’ll fulfill your promises
  • Convert interested prospects into buyers (and repeat customers)

Because just offering a product or service doesn’t automatically mean that your target market is ready to buy from you…

EVEN if they want or need it.

Giant Footprints

Guess which companies know that customers are the key?

The giants that you see every day like McDonald’s and Domino’s Pizza.

Does McDonald’s serve the best burgers in the world?

No way… but they have the most burger customers.

Did Domino’s have the best pizza when it skyrocketed to success?

Nope… they just knew the best way to acquire customers with their 30 minute delivery guarantee.

Now don’t get me wrong… your product or service still has to be good (or people won’t come back).

But that alone won’t lead to success if you can’t find a way of consistently generating sales.

But There’s Good News….

While your competitors invest a ton of time and money creating the best product…

You can beat them all by investing time and money on the most important thing…

Your Predictable Selling System.

Want More Customers?

We all do… That’s why we follow these 6 Proven Steps To Get New Customers Without Losing Money. It’s called the Predictable Selling System… and you can get it working in your business today.

Customer Acquisition Leads To Success

Ok, let’s backtrack a little and talk about the word “predictable.”

According to the Cambridge English Dictionary, the word “predictable” means “Acting or happening in a way that is expected.”

Think about that for a second…

What if you could implement methods that would make sales happen in a way that’s expected?

Wouldn’t that completely change your company’s future?

Your System For Getting Customers

If you want to beat your competitors and grow your business then you need a better system for attracting customers.

Your Predictable Selling System is a way to build a deepening relationship with your market as you move them from a complete stranger to a raving fan.

This system gets you customers on a regular basis and fuels your growth.

So you don’t have to worry about where your next sale is coming from.

Predictable Means Everything To Your Bottom Line

That’s the bonus that you get with the Predictable Selling System….

You get more customers and more cashflow… and that means you can invest in improving and upgrading your products to stay ahead of your competitors.

So you’re not ignoring the quality of your product…

You’re just focusing first on communicating with your customers and then using that success to improve your products and services.

But the best thing about the Predictable Selling System is that it allows your business to gain new customers without losing money.

Because what’s the point of spending $50 to attract a new customer who only spends $20?

Building A Predictable Selling System

Earlier we defined the word “predictable” and now we’ll talk about what a Predictable Selling System really means.

It’s a customer acquisition funnel that provides your business with a steady flow of people who are primed to buy what you’re offering.

It moves people from strangers to customers in a structured and predictable way that you can rely on.

There is no guesswork and no crossing your fingers every month hoping you hit your target sales goal…

If you implement this system in the right way, you’ll never be short on customers again.

So, How Does It All Work?

You’re probably asking yourself: How does this work without my company losing money?

Like I mentioned earlier, this system is designed so that you if you invest $100 in a customer you get back at least $100… and then much more over time.

The idea is you aim to breakeven on your customer acquisition.

That means you make back your advertising costs from the profit on your first sale (although in some businesses this might take up to 60 days).

Fun With Math

For simplicity let’s say your business sells an information product worth $100.

That means you can invest about $100 on advertising to sell your $100 product (because you have basically no product fulfillment costs).

Or maybe you have a physical product that sells for $100 but costs $50 to make and deliver…

Then you have $50 to spend on advertising to make your money back on that first sale.

Whatever your number, you need to know your Allowable Acquisition Cost.

Just remember that you make your profit by selling more products and services on the back end (because it’s a lot easier to sell to existing customers).

Here’s Where It Gets Clever

Most business owners will be shocked by this because they want to make a profit immediately.

However the smart business owner will realize you make more money from your Lifetime Customer Value.

That’s because the first sale is always the hardest and current customers are always easier to sell to than a completely cold market.

But we also want to build the best Predictable Selling System around so we get the customers and our competitors don’t.

3 Key Concepts

The full Predictable Selling System has 6 steps but for now I want to focus on 3 main concepts that can dramatically change your business.

There are the…

  1. Lead Magnet
  2. Tripwire
  3. Core Offer

Don’t worry if you don’t know these concepts yet because they aren’t difficult to understand…

Concept 1 – Lead Magnet

Most sales aren’t made on the first contact… so you have to follow up.

A Lead Magnet is a small, free offer such as an eBook, guide, discount coupon or some other product or service that you give away to a consumer in exchange for their contact information.

This giveaway is something specific that your target market would find useful.

In our case, one of our Lead Magnets is a free report on how to build your own Predictable Selling System.

We want to deliver value by teaching you something useful and show that we know what we’re talking about.

It’s a way of deepening our relationship in exchange for your email address (our first transaction of value).

Segment Your Market

Your Lead Magnet is a chance to offer something unique that gets your market’s attention.

For example, what do you think is a more appealing Lead Magnet…

  • Free Recipes
  • 101 Free Recipes
  • 101 Free Low Carb Recipes
  • 101 Free Low Carb Recipes For Vegans

Notice that as we continued we got more specific in our offer and our market.

So if you put the final offer in front of vegans who want to lose weight or eat low carb, then you should get a pretty good response.

Plus we stand out since everyone and their dog are offering generic “free recipes” on the internet.

What You Have To Remember

Your goal isn’t to get everyone excited about your Lead Magnet…

Your goal is to get your specific market to opt-in.

Even if you have a wide market like “weight loss”, you’ll do a lot better by segmenting your market with multiple Lead Magnets.

Just focus on getting one working first before you get excited and try to create dozens.

Concept 2 – Tripwire

Now that we’ve started the relationship we want to deepen it even more.

A Tripwire might sound like an odd term, but it just means it’s an easy transaction that converts your prospect (or subscriber) into a customer.

A Tripwire requires a bigger investment from the prospect… but not a big investment.

This can be a small amount of money in relative terms to your main offer.

For example if your main offer is $100 then $7 is a lot easier to swallow.

But if you have a $10,000 product then a Tripwire of $100 or $200 might be appropriate.

Or you might use an investment of their time… like attending a webinar or free Strategy Session like we offer.

It’s A Low Barrier To Entry

Most businesses want people to buy their main product immediately.

But with this approach we’re taking another step to warm up our market in the process.

The difference is that your main product on a sales page will probably convert around 1% or 2%.

Whereas a Tripwire aims to convert between 5% and 15%…

Which means you get a lot more customers coming into your business and increase your chances of moving them to the next step.

Concept 3 – Core Offer

Your Core Offer is just your main product or service that you believe everyone should buy.

We’ve used the Lead Magnet and Tripwire to warm people up so they’re much more likely to buy your Core Offer now (if your Tripwire delivered what you promised).

Remember how we normally get a 1-2% conversion rate on a Core Offer straight to a cold market.

When you upsell your Core Offer to a Tripwire buyer, you’re more likely to see a 20%+ conversion rate.

Let’s Check The Maths

In our first case we sent all new Lead Magnet subscribers to our Core Offer (we’ll use low conversion rates for the example):

10,000 subscribers x 1% Core Offer conversion = 100 sales of $100 ($10,000)

So we made $10,000 in sales and if we want to breakeven on customer acquisition then we could afford to invest $1 to get each subscriber.

Or we could send our subscribers to a Tripwire first and then upsell the Core Offer:

10,000 subscribers x 5% Tripwire conversion = 500 sales of $7 ($3,500)
Then 500 x 20% Core Offer conversion = 100 sales of $100 ($10,000)

Now we’ve made $13,500 in sales and can spend $1.35 per lead (a 35% increase).

But most importantly, we have 100 customers in the first case and 600 in the second… customers who are likely to buy more from us in the future.

Plus The Conversion Is Easier

If you’ve delivered great value with your Tripwire then the Core Offer is a natural progression.

There’s no more “I hope they’ll buy”… it becomes a lot more natural and doesn’t really feel like “selling”.

In our case, we see a much higher conversion rate than just 20% of people who take our Strategy Session and then want to work with us (closer to 80%).

But if I just sent people to a sales letter with a big buy button then we’d probably get very little business 🙁

Don’t Go Overboard

A word of caution here…

At this stage, you have to make sure you don’t blow it by hard-selling the customer who is just about ready to commit.

Don’t go at them with a “Buy” mentality that flashes in neon.

You’ve already established some level of trust through the first two steps.

So at this stage, your prospective customer just needs a little nudge to become a full-fledged customer.

Another Advantage: You Don’t Become Boring

We all know businesses with one product…

They just send us email after email trying to get us to buy the same thing.

But when you use Lead Magnets and Tripwires, you suddenly have a lot more ways to sell your one Core Offer.

So you can email your list from a different angle every time.

Predictable Selling System

6 Proven Steps For Getting More Customers Without Losing Money

Can you predict the number of sales you’re going to get before they actually happen? Yes, you can! Discover our 6 Steps For Getting More Customers Without Losing Money and how you can implement it in your business now.

Predicting Results Based On Cost Per lead

What works so well with the Predictable Selling System is that you know whether your funnel is likely to make money based on how much you are investing to get a lead.

That’s why you’re acquiring customers without losing money.

Because if your Cost Per Lead is too high… you know that’s probably not the right move to make (in our example above it needed to be lower than $1.35).

But you’ll know that BEFORE you invest in that lead, giving you the chance to adjust your Lead Magnet, Tripwire and Core Offer so that you’re not losing money.

Benchmarks You’ll Want To Know

To make improvements you determine which area of your Predictable Selling System isn’t working you start with the one closest to the front of the funnel (the Lead Magnet).

Low conversion at the front means fewer people get to see your products anyway.

Here are some benchmarks to aim for:

  • Lead Magnet: 40%+
  • Tripwire: 5-15%
  • Core Offer: 20%+

If you’re close enough then you can move on to the next area of improvement, but this gives you something to base your assessment on.

The Gift That Keeps On Giving

Remember that there’s a domino effect when you’ve acquired a new customer because you can start marketing other products and services to them and now they’ll be much more receptive.

This is known as Lifetime Customer Value and it’s essential to the long term growth of your business.

Always remember that your business should serve the market… not just focus on one product as it’ll be very hard for you to succeed.

So find more ways to serve the customers you have so they stick around and refer more business your way as well.

It Works If You Apply the Principles

The key to acquiring customers without losing a dime is to understand how a Predictable Selling System can work in your market.

There are definitely ways that you can use a Lead Magnet and Tripwire in your business… you just have to put in a little thought.

Sometimes you can even use a Tripwire as your first offer and not have a Lead Magnet at all (although I’d recommend at least having them on your website somewhere).

The important thing is to think about the entire process and experiment with these proven ideas until you get one that works for your business.

Action Steps

To get more information and learn about the full 6 steps, download our free report on the Predictable Selling System if you haven’t already.

And then get to work planning your own Predictable Selling System.

Your competitors won’t know what hit them! 🙂

6 Steps For Getting More Customers Without Losing Money

About Tabitha Naylor

Tabitha Jean Naylor is a certified Inbound Marketing Consultant with over a decade of experience in both B2B and B2C markets. Her intimate knowledge of how sales and marketing go hand-in-hand has resulted in a variety of successful campaigns for start-ups through NASDAQ traded companies.

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