Ep 30 - Case Study On Finding Untapped Goldmines Hidden Within Your Business

In this episode I take you through a case study of how to find untapped goldmines hidden within your existing business. We also discuss why most people are building sales funnels in completely the wrong way and how, when you get your strategy right, you get everything right.

In this episode we'll discuss...

- Why simply putting together a series of pages and emails and calling it a "sales funnel" is going to leave you broke and frustrated...

- How I discovered 1 segment of his customers worth 33x his average customer...

- Why all customers are NOT even remotely equal and how to segment and leverage your hyper-responsive buyers in your marketing...

And so much more!

Transcript:

Hey, this is Jeremy Reeves and welcome back to another episode of the sales funnel mastery podcast.

Alright, so I’ve been going through a lot of changes in my business this year and one of those changes is actually, funny, believe it or not, getting out of sales funnels, okay.  Not that I'm not doing sales funnels anymore, but I'm thinking about them in a very, very, very different way.

Okay, so it's kind of, it really hit me this year that people just don’t think strategically anymore.  It's kind of like, “Oh, I need a sales funnel, let’s just throw together any old landing page” you know, kind of market to any customer, you know, put together some emails and they kind of just, you know, it goes after a broad range of people, and that does not work.

You might get to, I don’t know, you might build a 6-figure business something like that doing it like that, but if you're really looking to grow or if you're really looking to make as much or more money than you are right now by working, you know a quarter or half of the time, you can't think like that, okay.

So one of the things -- one of the bigger realizations that I have had lately is that I'm actually -- since I don’t really care, I kind of had another breakthrough recently that information products really don’t do anything for me, okay.

I have never once in my entire life out of all the thousands and thousands and thousands of dollars had a breakthrough from an information product, and that’s actually why -- I'm actually considering taking all of my information products completely out and just being you know being who I am, giving my best absolute -- you know just zero secrets information and just moving to just 100% service business.  Because, it's just, you don’t get breakthroughs from information products.  All the breakthroughs I’ve ever had in my life came from me, giving somebody else a lot of money.

I spend you know, roughly $25,000 to $30,000 a year on coaching and those where I always have my biggest breakthroughs okay. 

So, just for one example, I was just talking to someone on the phone, and this is you know, kind of the reason that I'm making this podcast, I know they have been scarce lately, hopefully, I can start doing them more.  I know everybody wants to, you know everybody wants to smack me in the head, you know, for being so slack on these.

I just got off the phone with somebody and in my business, one of things that I'm doing is switching from a model of building sales funnels and saying, “Okay, I'm going to do ABC for you, you're going to give me X dollars” and I'm switching to a model of just saying, “Hey, listen, you're already doing well, I have found several untapped opportunities in your marketplace, and I'm just going to fill those for you and you just pay me on the results.”

You know, so instead of like having people money and they don’t know if they're going to get results, they all worry, it's like, you know it's big drama thing.  I'm kind of just, you know, taking it up 321 and saying listen, “I only get paid when you get results and you're going to get more than me, you're going to get the lime share of the profits.” 

So, that’s kind of where I'm starting to head, take my business.  Only in certain cases where I know that it's an easy win. 

So I'm talking to one guy, just got off the phone with him, actually about 5 minutes ago and once I got off the phone I realized I had to do this, okay.

So, he runs the business and he tells me that his average customer, okay I'm going to give you some numbers, I want to see if you can figure this out while I'm talking about it, alright, and I'm going to try to teach you to think strategically and find the untapped opportunities that nobody else is seeing.  I have a feeling you know, hopefully you get it, but before I can explain it, okay.

So, I'm going to give you some numbers and you can write this down if you want to.  If you're sitting in your computer or something grab a piece of pen and a paper, okay.

So, his lifetime customer value is $1200, okay.  You write that down.  Lifetime customer value is $1200.  25% of people or actually 75% of people only use him one time, okay, and the average sale is $300, okay.  So, again, $1200 customer lifetime value that’s over all of his customers.  So if you get him a 100 customers, you know, he’s going to make $120,000 okay, total, with all those customers, okay.  75% of them are only going to use him one time and spend $300, okay, so write that down.

And then, so I want you to break that down, okay.  So, I broke it down for you. So, I have down here 100 customers, he’s going to make $120,000, 75% of them are going to spend -- so basically 75 of them are going to spend $300, that’s $22,500.  Now remember, out of 100 people, he’s making $120,000.  75 of those people, 75 out of 100 are giving him $22,500.  So, he has the other 25% of people that are multi-buyers that you know, spend -- they come back to more than once. They are giving him $97,500, okay.

Now, I'm kind of going slow here because I want you to figure out where the opportunity is here. 

What I realized is that, okay, and here -- a couple more numbers here.  What I realized is that, a one-time customer is worth $300 to him, but his average customer is worth $1200, okay.  And again, I'm pausing a lot here because I want to see if you can come with the solution here.  I want to get you thinking, right. Because I like to teach people, I don’t like to just get 619 things that you should do.  I want you to learn here.  I want you to, you know, rack your brains.  So, while I'm talking here, I want you to think about what you would do in this scenario, okay, and let’s see if you're right, okay.

So, again, people do come to him and they buy one time worth $300.  His average customer is worth $1200.  So, where is that opportunity?  The opportunity is in building campaigns to target his hyper-responsive buyers, okay.  Because, I figured it out, I want -- you do the math, but I figured it out that his one-time customers worth $300 and if they come back more than once, they worth $3900, 33 times the amount.  If they do business more than once.

So, obviously, and hopefully you got it by now, because I have given you pretty much everything I could possibly give you.  Obviously, the opportunity here is getting people to come back more than once.  It's not about building a new landing page, it's not about testing and tweaking to get more customers, it's about none of that stuff, okay.  

That’s what most people would do and say, “Oh, well you know, my average lifetime customer value is $1200, you know, so we are okay there and I just want more customers, let’s just get more customers, let’s add it in up sale, you know, blah.. blah.. and it's like no, no, no, no, stop.”

That’s not what you should be doing, yeah, sure that stuff might help a little bit, you might get incremental improvements, but think about if you got -- if you switch that and get 75% and I haven’t done the numbers here, so I don’t know what it would be, but say that 75% of people to come back to you and be worth that $3900 rather than the $300.  What do you think that would do for your business?

In fact, I'm actually going to do the numbers here.  So, we got, out of 100 people you have 75 times $3900 and that is $292,500 and then we have the other 25 people are spending $300, so that is $7500.  So that’s $300,000.

So, basically, if you could switch that equation, and if you could go from 75% only using it once to -- only 25% using you once which I know that’s a big job.  That might not be realistic, although, it could be.  I'm going to tell you how in a second.

That takes your profit from $120,000 to $300,000.  So, you’re almost tripling here, I don’t know whatever that is, 2.7 times or whatever it is, okay.

So, that’s where you need to focus your energy and that’s why -- that’s the kind of thing that I'm good at, is finding those you know, untapped opportunities and you know, fixing them.  Because in most cases, stuff like that is going to give you a bigger overall impact on your ROI than -- you know, you have to have a funnel.  I mean you have to have that, yes, but people think that you just get a funnel and that’s it like it's just some magic bullet and it's not, and listen, I'm the one that is sitting here selling, you know 934 for your sales funnels, okay.  

But they're not the magic bullet.  You need them? Yes, absolutely.  But you need to do them correctly and I have 944 on this so much, and it's ridiculous, it makes my throat hurt.  But, you know you can have a sales funnel, but if it's not done the right way, it's not going to do anything for you, okay. 

So that’s just one example.  Now, so let’s just say, you know, so you’ve come to a realization that, oh my God, you know we have to flip that equation.  So, how do you do that, okay. 

So, what I would do if this is for my business, I would look at number 1, what are we put in place, how do we create and make a habit out of these people, you know how do we get them to not only use us once, but use us multiple times, okay and by the way, just so you know, I don’t have any knowledge for this, I'm going completely off the top of my head right now.  So, I could probably come up with something better if I actually thought about it, but I didn’t think I was actually get this far on podcast.  So, I'm literally just coming up this thought off to my head.

So, one thing I would do is number 1, you make it a habit, okay.  Make it a habit for them to get a press release.  So, you try to educate them in why something like a press release once a month is going to grow their business and you give them relevant facts and details and case studies and things like that. 

Another thing is maybe you give them a little bit of a discount or you add in some type of a -- like a rewards program, you know, that kind of thing, and one little trick there if someone has to get attend you give them you know, two little punches in the beginning, you know, there is a whole psychological thing on that.  So, those are a couple of ideas. 

Another really, really big one that most people missed, because everybody when they're marketing, they're just going after anybody who buys for him and as you can see in this case, that is not a good thing to do.  That’s not a good strategy, okay.  Because he clearly is attracting 75% of the wrong type of person, okay.  25% of the people who are buying for him are worth $3900 and 75% are worth $300.  Again, that’s 33 times difference, okay, that’s what 3,300% difference.

So, what he has to do is do surveys, do research, call his customers, find out who those people are and find out why they are using him so often, and then what do you do? Then, you create a duplicate campaign, you create kind of like a doppelganger strategy, where you try to clone those customers and that’s who you target.  Even if you have to spend 3 times as much, you know, in this case, you can afford to spend 33 times as much money to get it.  

So, if you know, if you're -- and obviously you're not going to do that because you need profit, but if you're to break even that’s what you can do.

So, even if you spend just a 5 times as much as people, they're worth 33 times more money.  So, if you know exactly what that little segment is, it's bringing you in all that extra profit that’s who you after and you just work your balls off and you -- you know, you go -- you know 1254 and completely just flood that market of that specific type of person.  You throw everything you have at them, because that’s where your money is coming from, okay. 

So, I hope this all make sense, it was probably a little bit deep.  So, you might want to listen to it a few times, but the big lesson here is that you have to look in your business and you have overall profit, you have overall customer lifetime value, but if you really dig down and you look at your numbers and you can strategize and think of this very clearly and articulately and strategically, that’s how you come through with these big breakthroughs like this, okay.

It's not about adding a new landing page.  It's not about adding a prospect sequence.  That stuff helps, but if you don’t have this strategy in place, for example, you know I could work with him and build a whole new funnel just to segment these types of people.  So, that’s where the sales funnel should be, okay.  It shouldn’t be just targeting anybody, it should be targeting these specific group of people, okay.

So, that’s my little spiel for today, actually, I have a meeting in a couple of minutes here, so I got to stop it here, but I got very inspired after that and I thought it would help you.

So, you know, again, the big takeaway here is, look at your customers, your clients, whoever you're serving, and find out what segments of them are making you most of your money.  This follows the 80/20 role.  I don’t know if that’s, let’s see 97 -- this is actually a little bit more than 80/20, it's more like 85/15 I think.  So, he’s making 85% of his profits from about 15% of the market, okay, roughly.  I have to do the math on it whatever $97,500 is into 120.

The big lesson here is look for those segments, those little tiny, you know little hidden gems in your market where they're bringing you in the most money or if you have a continuity program, you know why do you have people that are staying a month versus people that are staying a year, you know, who are those people that are staying a year.  If you have clients, some of them give you 25 grand for projects, some of them give you 5.  Who are the -- you know, who is that, that little segment group that’s giving you 25.  I already know what that is in my business.

Figure that out for your business and it completely changes the entire dynamic of your business, completely changes the entire strategy and it completely changes if you’re looking to get a sales funnel done by me or by anybody else or whatever you're doing by yourself, you have to be building the right sales funnel, okay.  

That is absolutely key here, okay.  It doesn’t matter how you can spend you know, a $100,000 on a sales funnel, but if you don’t have the strategy behind it, like if you're just attracting any old prospect versus the people who are making you the most money, it doesn’t matter, you're going to get better results, but you're not going to get a giant phenomenal breakthrough and that’s what I'm all about here, is getting giant phenomenal breakthroughs, not little tiny, stupid little increases.

So, that’s my 1600 for the day.  If you're interested in talking, getting in touch, about getting the sales funnel done and having this kind of you know, strategic thinking done on your business, or even if you know, you want to do some time at coaching or something like that, just shoot me an email, I'm not going to have a giant pitch for it, just shoot me an email and my email is [email protected].  Tell me what's going on in your business and we will see if we can figure something out.

Alright, so again, this is Jeremy Reeves from www.jeremyreeves.com and I will talk to you soon.