You’ve ultimately spotted it…
The “treasure map” to building an unstoppable business.
We call it the Customer Value Optimization process.
( RELATED: The Ultimate Guide to Digital Marketing)
If you’re not very well known how we do things here at DigitalMarketer, this is the first article you should read. It teaches you the foundational the concept of digital marketing.
And even if you’re a salty DM veteran, you are able to still want to reread this from time to time as a refresher. It’s that important.
What you’re about to get in this announce is a 10,000 -foot notion of how the marketing process works when it’s done right.
This is vital to understand because all marketers and entrepreneurs are at various levels of STUCK. There’s so much to learn–and the marketing infinite is changing so rapidly–that no one can keep up with every little switching in the market.
But when you understand the big-picture view…
When you can see how all the various segments are meant to work together…
You’ll know how to create a SYSTEM that works to efficiently and repeatedly entice new potentials, proselytize them into purchasers, and get the maximum profit out of them.
Sound like something you’d like to have? Then let’s get right to it.
This is the system Starbucks and McDonald’s used to corner the chocolate and hamburger groceries. It’s the same system Amazon uses to reign ecommerce. It’s how Best Buy, Beachbody (selling workouts like P90X ), and Sports Illustrated have become household names.
It works for small-scale, medium, and enterprise-level business. It works for mom-and-pop patronizes and billion-dollar retailers. It cultivates whether you sell traditional concoctions, digital products, or services.
This system productions because it employs each and every aspect of the irrefutable statute of business growth put forth by acclaimed purveyor Jay Abraham. He teaches that there are only 3 ways to grow a business 😛 TAGEND
Increase the number of members of customersIncrease the average busines value per customerIncrease the number of transactions per customer
If you think about it, this prepares perfect sense.
And the system you’re about to learn–we call it Customer Value Optimization or CVO–leverages all 3 business swelling procedures. That’s what builds it so powerful.
So read this page carefully. Read it multiple times, and commit it to memory.
This is the stuff the world’s best purveyors and inventors know and use daily–but it isn’t taught in any business school.
( NOTE: Before you can start optimizing your clients, you need to know who your model patron is, where reference is, and what they will buy. Download our proven Customer Avatar Worksheet now and get clear on who you’re selling to .)
Learn the Steps to Customer Value Optimization
This handy flowchart outlines the CVO system 😛 TAGEND
Print this PDF and tack it to the wall next to your work station. If you intend to execute this plan, you’ll need to reference it often.
This is your big-picture treasure map to building an unstoppable business. Anytime you’re learning a new tactic–whether it’s Facebook marketing, Google Analytics, search engine optimization( SEO ), and so on–you’ll want to check in to see which part of the Customer Value Optimization process that tactic fits into.
Otherwise, you’re liable to end up waste your time and money.
Take this as a WARNING: “Theres still” little profit in understanding, for example, Pinterest advertising or email market in and of itself. Because individual tricks like that represent just one section of the whole.
But there is an ENORMOUS profit in understanding how to apply these traffic policies within the context of the CVO process.
Here is a flowchart of the whole Customer Value Optimization system 😛 TAGEND
When you violate it down, the authorities have 7 steps to Customer Value Optimization 😛 TAGEND
Determine Product/ Market FitChoose a Traffic SourceOffer a Lead MagnetOffer a TripwireOffer a Core ProductOffer a Revenue MaximizerCreate the Return Path
Lean into this article and pay close attention–we’re about to reveal the EXACT process we use to sell products and services in numerous niche markets and mainstream horizontals including…
Finance and InvestingMen’s ClothingHome ImprovementSurvival and PreparednessBeauty
… simply to words a few.
Let’s begin with…
Step 1: Determine Product/ Market Fit
We begin the Customer Value Optimization process by getting clear on the most important person in your business: your customer.
At its core, business is pretty simple.
We get paid to move these purchasers from an undesirable “Before” state to a attractive “After” state.
In the “Before” state, the customer is discontent in some way. They might be in pain, bored, feared, or unhappy for any number of reasons.
In the “After” state, life is better. They are free of pain, entertained, or unafraid of what previously beset them.
People don’t buy products or services …
They buy transformations.
AKA a most desirable “After” state.
This means that a good OFFER will deliver the “After” state the person or persons wants…
And good MARKETING will express that alteration from “Before” to “After.”
The flip side is also genuine: when a new business miscarries, it’s often because it FAILED to either…
Offer a desired “After” state( the volunteer was no good)Articulate the free movement of persons from “Before” to “After” (the marketing was no good)
Needless to say, coming clearly defined the desired outcome your offer delivers is fundamental to the success of your business.
Here’s how to get that clarity…
The 10 -Question “Before& After” Grid
Before you compose or market another present, ask yourself these 10 questions 😛 TAGEND
What does your prospect HAVE in the “Before” state? What does your expectation HAVE in the “After” state? How does your potential FEEL in the “Before” state? How does your prospect FEEL in the “After” state? What is an AVERAGE DAY like for your potential in the “Before” state? What is an AVERAGE DAY like for your expectation in the “After” state? What is your prospect’s STATUS in the “Before” state? What is your prospect’s STATUS in the “After” state? What is an EVIL that is plaguing the prospect in the “Before” state? How does your promise quell it and raising more GOOD to the world in the “After” state?
Just put your answers in a simple table like this 😛 TAGEND
Here’s an example, employing our own corporation DigitalMarketer. How do we cure our patrons reach a positive conversion in their own lives?
For this illustration, we’re going to use our “Marketing Executives” avatar. So these people charged with the responsibility of a marketing department–usually the CMO, the VP of Marketing, or the Director of Marketing.
We know from experience that parties in these berths run into a lot of questions. A pile of unwanted “Before” states. So, we’ve generated training programs that can help solve those problems and deliver the “After” states these parties really want.
How do we make love? By transforming the marketing executive…
From HAVING a disorganized unit … to having a team that’s a well-oiled machineFrom FEELING annoyed, overwhelmed, and scared of losing their job … to feeling confident and in controlFrom having an AVERAGE DAY in which they have to “coach up” under-performing team representatives … to an average day in which they’re free to focus on big-picture strategy because they can trust their other squad members to take care of the details correctlyFrom a STATUS of being disrespected and behind the times … to a status of being respected, up-to-date, and even up for a promotionFrom the EVIL of being a victim of an old-school university model that doesn’t organize graduates for current realities of sell today … to the GOOD of helping to train the marketing leaders of the future
Average marketers merely articulated what a customer will HAVE if they purchase their product or service.
Great marketers speak to the changeovers around how the customer will FEEL, how their Average DAY will change, how their STATUS will hoist, and how they will solve an EVIL in the world( making them a real-life hero ).
With this simple 10 -question “Before& After” Grid, any half-decent copywriter will be able to create a marketing meaning that will have an impact.
The marketing imitation writes itself now that you are clear on the “Before” and “After”…
“Turn your disorganized unit into a well-oiled machine that’s ready to kick some serious sell butt.”“Tired of having to’ instruct up’ your crew day after day? With DigitalMarketer HQ, you’ll be free to step back and concentrating on big-picture strategy.”“Just imagine feeling confident and respected in meets, knowing that your next promotion is coming soon.”
Do you is how this photocopy clearly expresses how the commodity will move a marketing executive from a “Before” state of stress and frustration to an “After” state of confidence and success?
It’s powerful stuff.
Make sure to complete the Before& After Grid for ALL of your client avatars, because each customer segment will go through a different transformation.
Understanding how you will transform your prospect from a “Before” state to a hoped “After” state also impacts…
( NOTE: Before you can start optimizing your purchasers, you need to know who your model client is, where they are, and what they will buy. Download our proven Customer Avatar Worksheet now and get clearly defined who you’re selling to .)
How much you can charge
What is the interval between the “Before” and hoped “After” state?
That distance is called VALUE.
A stick of gum is inexpensive, in part, because it plasters a short distance–from “bad feeling in your mouth” to “good taste in your mouth.”
By comparison, a auto plows a much greater distance: from “stuck at home” or possibly “forced to take a populace bus to work” to being “free to travel where you are mis in privacy and comfort.” The car caters much more value, and accordingly, it’s also a lot more expensive.
Do you want to blame more for your products and services?
If so, the mixture is simple: create more distance between the “Before” and wanted “After” state by either 😛 TAGEND
Creating a better product or service( better offer) Articulating the movement from “Before” to “After” differently or more clearly( better sell)
When rolling out a new volunteer, starting a “companies “, or moving into a brand-new market–make sure to get clearly defined your “Before” and “After” states. And as I said, make sure to do it for EACH of your customer avatars.
If you’re not able to clearly articulate how you can take your potential from the “Before” state to a desired “After” state … you may have an issue with Product/ Market Fit.
Product/ Market Fit may be the single most important part of the entire Customer Value Optimization system. Simply, because every other part of the process is dependent upon having a group of eager and able buyers.
Once you have that group of customers, the next step is to find a way to bring those people to your website. Which generates us to Step 2: Choose a traffic source.
Step 2: Choose a Traffic Source
Now that you’ve achieved Product/ Market accommodate, your next step is to find out how to reach that market and get them to your website.
This is where paid traffic comes into play.
I’ve often said that in this day& senility, NOBODY has a traffic problem.
You might have a business model trouble, an volunteer difficulty, or a measurement problem.
But traffic is NOT your problem.
Want to know why?
You can always buy more traffic.
Google, Facebook, Pinterest, Twitter, and LinkedIn … these platforms are all basically traffic collects. And they would love to send you more clicks( for the right CPC or CPM, of course ).
When you look at it that highway, the question of traffic comes down to cost. And to generate traffic profitably, you simply need to understand 2 things 😛 TAGEND
How to measure what traffic is worthHow to extract maximum immediate evaluate from that traffic
For example, simulated that you got $ 10 in advantage every time a guest came to your website. Would you be able to get commerce to the site?
Heck yes, you would!
You could pay up to $10 per guest and still break even.
In fact, you’ll be able to pay MORE than $10 to get a visitor to that sheet when you genuinely understand the whole Customer Value Optimization system–because you’ll be able to extract even more benefits from those guests later on.
This is why CVO is so powerful. Because it allows you to earn more gain per visitor…which means you can spend more money per visitor.
I’ve often said 😛 TAGEND
“He who can spend the most money to acquire a new customer … wins.”
And Jeff Bezos, Founder and CEO of Amazon.com, once said something similar( in a tongue-in-cheek warning to his adversaries ):
“Your perimeter is my opportunity.”
Amazon.com sells on the thinnest of perimeters, knowing that acquiring brand-new customers, selling them more products, and selling to them more frequently is how you become unstoppable( there’s Jay Abraham’s law of business growth again ).
Now THAT is a killer traffic strategy–one that sets you up for long-term earnings and steady growth.
And this is also why tactics and “marketing hacks” are worthless if you don’t understand the CVO process.
You can learn about blogging, Facebook ads, or email marketing until you’re off-color in the face…but unless you know how to set up a method that wrings maximum profit from that traffic, you’ll continue to work towards promoting frustrated.
That’s because the goal of traffic generation–no matter which traffic informant you choose–isn’t to generate an immediate profit–it’s to drive promises into the CVO Funnel.
So whatever you do, don’t hop around from one traffic root to the next, looking for some kind of “magic pill” that are able to instant compile your business profitable.
Instead, become a master of a single, steady traffic beginning. Bide focused on that traffic generator and, formerly surmounted, add a second and third traffic source.
These traffic sources include…
Email marketingSocial promote( Facebook/ Twitter/ YouTube ads, etc .) Display advertisingContent marketingOrganic social mediaSEO
And so on.
( NOTE: Before you can start optimizing your customers, you need to know who your ideology patron is, where they are, and what they will buy. Download our attest Customer Avatar Worksheet now and get clearly defined who you’re selling to .)
You won’t make a huge benefit right away, but that’s not the level. The profits will come later IF you use the CVO system.
And the next step of that system is to…
Step 3: Offer a Lead Magnet
The next 2 parts (Offer a Lead Magnet and Offer a Tripwire) see you how to grow your business through the first of Jay Abraham’s procedures: increase the number of customers.
First, let’s talk about Lead Magnets.
A Lead Magnet is an seductive bribe that leaves a specific chunk of value to a prospect in return for their contact information.
Make no mistake, although no fund modifies handwritings, this is a transaction. It is often the very first transaction you will have with a prospect.
In order for your Lead Magnet to be effective, you need to provide prodigious significance with it.
The Lead Magnet is usually offered on a web page called a landing page or mash sheet that is optimized to convert even cold traffic into leads.
Your landing page doesn’t need to be fancy to be effective. Here’s a high-performing Lead Magnet arrival page from Digital Marketer…
The purpose of your Lead Magnet is to generate conducts so you can continue to follow up with them. Because your Lead Magnet is the terribly top of the CVO Funnel, increasing your opt-ins here will pay dividends throughout the rest of the system.
But not all Lead Magnets are created equal. The best Lead Magnet mash sheets will proselytize north of 50% of pilgrims into leads.
How do you achieve such a high conversion rate?
The key is to make sure your Lead Magnet is specific.
Specificity: The Key to Getting More Leads
What irresistible bribe could you give in exchange for a prospect’s contact information?
The good story is that you DO NOT need to create something interminable or complex. In fact, we’ve found that the more laser-focused your Lead Magnet is…the better it will convert.
This, for example, is NOT a good Lead Magnet 😛 TAGEND
There is no offer in this Lead Magnet, much less a specific one.
But this Lead Magnet isn’t considerably better. There is an offer, but it isn’t specific …
The offer of a nondescript “freebie” is not going to move parties to action. They want to solve a problem. They demand an outcome.
( Hint: Any opt-in form or squeeze page that begins with “Subscribe to our newsletter” is probably NOT a good Lead Magnet. Exactly sayin’ .)
Contrast the prior two Lead Magnets with the specific problem that is addressed in this Lead Magnet…
This ad grants a very specific promise to “take your blog berths from’ Meh’ to Magnificent–FAST.”
It’s a specific promise that appeals to exactly what our patron avatar is looking for.
Now, because of the nature of our firm, we tend to offer a lot of online resources–PDFs, videos, that sort of thing.
But your Lead Magnet could be all sorts of things. If you’re a SaaS company like Sprout Social, your Lead Magnet might be a free trouble 😛 TAGEND
Ecommerce companies can offer free send or even a dismis on your first buy like Williams Sonoma does here 😛 TAGEND
No matter what industry you’re in, the take-home word is the equivalent 😛 TAGEND
Make sure your Lead Magnet solves a specific problem for a specific segment of the market.
Do that, and you’ll generate more high-quality precedes … some of whom will then go on to take the next step in the Customer Value Optimization system.
( NOTE: Before you can start optimizing your purchasers, you need to know who your paragon client is, where they are, and what they will buy. Download our substantiate Customer Avatar Worksheet now and get clear on who you’re selling to .)
Step 4: Offer a Tripwire
Now you have a Lead Magnet that is generating opt-ins and helping to build your email list. But your Lead Magnet isn’t generating patrons, simply prospects.
The next step in the CVO process is to turn those produces into purchasers. To do that, you need a Tripwire.
A Tripwire volunteer is an irresistible present that there is one reason and one reason exclusively 😛 TAGEND
To convert prospects into buyers.
Typically, a tripwire is a super low-ticket offer( typically between$ 1 and $20 ), although it is capable of will vary depending on your marketplace. In marketplaces selling high-ticket commodities and services, a tripwire volunteer of $500 might be considered a low-ticket purchase.
The goal of the Tripwire is to fundamentally change the relationship from potential to customer. The transition of a prospect to a customer, even for$ 1, is magical.
The key is to make a Tripwire Offer that your precedes are unable to resist.
The most common road to impel the Tripwire seductive is by selling it at cost and, in some cases, at a loss to you.
That’s correct–you are not trying to make a living from selling Tripwire Offers. You are trying to acquire buyers because “theres nothing” more valuable than a roll of buyers.
When you understand the rest of the Customer Value Optimization process, you will understand that the Tripwire Offer is the single most powerful addition you can compile to your business–even though you meet no direct profit from it.
A classic speciman of a Tripwire Offer comes from Columbia Records…
Columbia House took over the music busines by making an absolutely inescapable furnish( 13 records or tapes for$ 1) because they understood that acquiring a list of customers is the name of the game.
Natures of Tripwire Offers
Physical produces can realize magnificent Tripwire offers…
and so do physical books…
Service-based firms will often commit a steep discount on services to get brand-new patrons in the door–like dentists who furnish low-cost quizs or teeth whitening periods:
Or gyms present a low-spirited preparatory cost on fitness classes…
Heck, Groupon is FULL of Tripwire proposals. It’s a great place for local customs( like lounges) to lure new customers with deeply discounted proposals 😛 TAGEND
Even GoDaddy, the domain registration and website hosting assistance, offers a low-priced discipline to acquire brand-new customers…
Tripwires are all around us.
It’s the unbelievable flat-screen TV deal at Best Buy. It’s the rock-bottom price of a Kindle Fire. It’s every busines will be available for a measly$ 5 on Fiverr.
The strategy behind the Tripwire is simple 😛 TAGEND
Convert the maximum number of Lead Magnet heads into paying purchasers, even at the cost of your earning margin, with the recognizing also that acquiring a pay client will deliver benefit through the next 3 gradations 😛 TAGEND
Core OfferProfit MaximizerReturn Path
OK, now that you understand how to increase the number of clients, let’s talk about increasing the average transaction value per client by selling your Core Product.
Step 5: Offer a Core Product
Now that you have a bunch of customers who have obtained a low-dollar item with you, the next step in the Customer Value Optimization process is to sell these people a higher-priced product.
We call that your Core Offer.
You most likely once have a Core Offer. It’s your flagship concoction or products.
The mistake that numerous businesses become is trying to sell their Core Offer to cold prospects. This almost never acts, because your Core Offer is too expensive. It’s too big of a commitment for someone who’s making their firstly purchase with you.
That’s why we follow the CVO process to turn cold prospects into warm promises and warm prospects into clients. Because those purchasers will be much more receptive to your Core Offer.
Often, simply computing a Lead Magnet and a Tripwire is enough to explode your Core Offer sales.
As long as you over-deliver and equip immense significance with your Lead Magnet and Tripwire, your client will be highly interested in obtaining your Core Offer.
And here’s something to keep in mind:
In some instances, sales from the Core Offer will realize you productive. But it doesn’t have to. If you be complied with on the CVO process, you have been able make everything you reach from the Core Offer and reinvest it to acquire more customers.
( NOTE: Before you can start optimizing your clients, you need to know who your ideology purchaser is, where they are, and what they will buy. Download our proven Customer Avatar Worksheet now and get clear on who you’re selling to .)
Again, this is how you become unstoppable. You build a system in which you can spend more to acquire a customer than your competitors. That means you’ll be able to acquire more the consumers and produce more profit in the long run through future transactions.
Compare that strategy to what most companionships do–which is try to make a living from selling their Core Offer.
But you? You don’t need to make a dime from your Core Offer.
Remember, as Jeff Bezos says, your competitor’s margin is an opportunity. It is your opportunity to, for example, devote more on traffic acquisition, conversion rate optimization, or increase the added advantage of your offers.
It might stun “youve got to” catch out that many of the most successful business in the world realize no advantage until they arrived at the next 2 stages, Profit Maximizers and Return Path.
Here’s where things get very interesting…
Step 6: Offer a Profit Maximizer
The second of Jay Abraham’s business proliferation approaches is to increase the average transaction value per customer.
That’s what the Profit Maximizer is for.
Most enterprises don’t have Tripwire Offers and they don’t have Profit Maximizers. They lives and die selling cold prospects on their Core Offer.
This is why they struggle … but you won’t.
Would it stunned you to catch out that McDonald’s makes almost no money on the burger? The burger is the Core Offer, but it’s the French fry and soda Profit Maximizers that built the Golden Arches.
This type of Profit Maximizer is called an immediate upsell…
Best Buy sells laptops and plasma TVs( Core Offers) on wafer-thin margins you can’t resist. They make up for it on assurances, station, and Geek Squad support( Profit Maximizers ).
Amazon makes a Cross-Sell Profit Maximizer offer when they show you, “People who bought this commodity, too bought that product” to increase the Average Basket Value( also known as maximizing gain ).
But Amazon likewise makes a Bundle Profit Maximizer offer with their “Frequently Bought Together” offer …
And Premium Subscriptions( recurring statement) like membership websites and other connection furnishes represent awesome Advantage Maximizer offers…
Hint: Any present made after the initial sale is a Profit Maximizer.
They’re announced Profit Maximizers because the revenue you get from these marketings is likely to be much more profitable than your Tripwire or Core Offer sales.
Remember: the single biggest outlay most corporations will incur is the cost of acquiring a new customer( which is the job of the Tripwire Offer ).
Everything that happens after that increases the customer’s immediate and lifetime value.
So go some time to think about what you could be offering as an upsell or cross-sell. What could you bundle with your Core Offer? How can you incorporate a due or membership site into your business model?
Find your Revenue Maximizer, and you begin to become unstoppable.
But there is one more way to grow…
Step 7: Create the Return Path
The last-place road to grow a business is to increase the number of business per customer.
Enter the Return Path.
The goal of the Return Path ought to have frequent, strategic communication with your customers and prospects that cause them to buy again and again.
Because you have receiving such contact information through the Lead Magnet, you can continue marketing to them.
You can offer brand-new Lead Magnets, Tripwires, Core Offers, and Profit Maximizers because you have permission to market to them or bring them back to the Tripwire, Core Offer, or Profit Maximizer that they didn’t buy the first time around.
The Return Path is anything that creates “the consumers ” or prospect back more frequently, including…
Email marketingExit offersOrganic social media( like Twitter, Facebook, and LinkedIn) Loyalty programsContent sell Outbound sales callingAd retargeting( More on ad retargeting now)
And that, my friends, is the system we have used( and continue to use) to grow DigitalMarketer and multiple other jobs in multiple industries.
It’s worked for single-member businesses and beings business like McDonald’s and Starbucks.
It studies because it takes all the jigsaw patches of digital marketing and equips them together in a way that fits.
And if you begin applying it the room I’ve exactly asked, it will assist you( more !) to grow and scale your business.
( NOTE: Before you can start optimizing your clients, you need to know who your paragon client is, where reference is, and what they will buy. Download our corroborate Customer Avatar Worksheet now and get clearly defined who you’re selling to .)
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