- Written by Nicolas Vanhoucke
Let’s just get right to it…
Here is the formula for doubling sales…
L x C x M x f = GP
L = leads
C = customers
M = margin
f = frequency of purchase
It looks like this…
Leads x Customers x Margin x Frequency = Growth Potential
Doubling any of the variables above (leads, customers, margin, frequency of purchase) will double your sales.
Double them all and you will 16X your business. Can you double them all? Doubtful.
Can you double one of them? Two of them? Even 3 of them?
In other words, there are 4 levers you have available to grow your business…
Increase the number of leads
Increase the number of customers
Increase the margin
Increase the frequency of purchase
Let’s look at each “growth lever” in turn…
How to Double the Number of Leads
Want more leads?
You either need…
A Lead Magnet
More Lead Magnets
Better Lead Magnets
A Lead Magnet looks like this…
If you click on that “Download Now” button you will be asked for your email address to receive the content.
Here’s another Lead Magnet…
A Lead Magnet is simply an irresistible bribe offering a specific chunk of value to a prospect in exchange for their contact information.
The key word in the above definition is SPECIFIC.
In nearly every case (assuming you are getting traffic to your Lead Magnet) the reason a Lead Magnet is not performing well is because it doesn’t solve a specific problem.
This is a terrible Lead Magnet…
But this one isn’t much better…
In both cases there is no specificity.
Our testing shows that a Lead Magnet that solves a specific problem can convert over 60% of the traffic to a Lead Magnet offer into a lead.
Take another look at the two Lead Magnet examples above and study the use of specificity…
If you want to double your leads—start with your Lead Magnet.
Start with SPECIFICITY.
How to Double the Number of Customers
Let me be clear…
This section is NOT about doubling profit—it’s about doubling the number of customers you are acquiring.
Acquiring customers is NOT the same thing as acquiring profit. In fact, in some cases acquiring customers will cause negative cash flow. In other words, while acquiring customers can lead to profitability—customer acquisition is NOT about profitability.
It’s about activating BUYERS.
To do that, we use something called a Tripwire Offer.
Here’s one from us…
And here’s one from VistaPrint…
And here’s another from GoDaddy…
We’re not going to get rich selling $9.95 books. VistaPrint doesn’t expect their $9.99 for 500 business cards offer to meet payroll. And GoDaddy shareholders don’t expect $.99 domains to keep the lights on.
We’re simply acquiring BUYERS.
Notice the price point on these offers:
$9.95 for a book
$9.99 for 500 business cards
$.99 for a domain name
We’re not exactly asking for a blood oath here—these are high-value, low barrier-to-entry offers intended that are designed to acquire customers.
If you want to double your number of customers—create a solid Tripwire offer.
But don’t expect that offer to make you more profitable. For that you’ll need to work on your margin…
(NOTE: Want to Learn 6 ways to Double Your Business? You can do so in this free 6-week course.)
How to Double Your Margin
Of course DigitalMarketer doesn’t only sell books.
And VistaPrint and GoDaddy have more than just business cards and domains to sell.
In fact, VistaPrint has a number of ways they can increase the value of that $9.99 transaction.
First, I can add a back side to my business cards for as little as $2.99…
From here I can…
Add to my quantity (Up to $139.99)
Upgrade to a “brilliant finish” (Additional $29.24)
Get better paper stock (Additional $11.24)
Buy one of those fancy business card holders (Up to $8.99)
Actually before it’s all said and done I can buy…
Car Door Magnets
Business Card Magnets
and on and on…
Every offer is relevant. Every offer is consistent with my original intent to get promotional materials for my business.
Every offer is intended to increase margin.
What’s going to happen if I start down the registration process for a $.99 domain from GoDaddy?
First, they’ll offer to bundle the .net, .org, and .info version of the domain with the .com…
Then, they start upselling private registration, hosting, website design, and email…
And it doesn’t stop there.
They’ll offer multi-year registration, search engine optimization, and social media services.
As for DigitalMarketer, we follow the purchase of my $9.95 book about email marketing with a content series designed to sell our $1,997 flagship email marketing training called The Machine.
Do you think making $1997 sales to customers that originally purchased a $9.95 offer increases our profit margin?
You bet it does.
And the additional offers made by VistaPrint and GoDaddy (and every other business that understands how to increase margin) are where the real money is made.
These upsells, cross sells, bundles, etc. are what make the cost of customer acquisition worth it.
Looking to double your margin?
Ask this simple question: “What else can I sell to the customers I am acquiring?”
How to Double the Frequency of Purchase
Ok, time for the last piece of the formula: Purchase Frequency.
What if you could get customers to buy twice as often? Sales would double.
To do that, you need constant, strategic communication.
We call it The Return Path.
The fact is that most sales don’t occur on the first visit, so without follow-up in place—you’re leaving an enormous amount of sales on the table.
These are all forms of The Return Path…
Exit Offers: A pop up offer that appears when a prospect attempts to exit a page
Ad Retargeting: Digital ads that show to prospects based on their prior behavior (Translation: Those ads that follow you around the web after your visit a web page)
Automated Email Follow-Up: A strategic email marketing plan that brings leads and buyers back to offers and content again and again
This last tactic, email follow-up, is the most effective way to double purchase frequency.
Every email you send should have one of five purposes…
Indoctrinate: Teach them who you are
Engage: Get them to buy
Ascend: Get them to buy more
Segment: Learn what they want to buy next
Reengage/Win Back: Reactivate disinterested subscribers
Email follow-up is so critical that we’ve created an entire article on building an email marketing machine here.
If you want to double purchase frequency—you need a Return Path.
Are you seeing the power of these “Growth Levers?”
Good news: I have created a FREE 6-part “Double Your Sales” course for those that want more detail, more examples, and more explanation.
In the FREE “Double Your Sales” course you’ll learn…
* Lesson 1: Discover the 4 unique “Growth Levers” that can increase the sales and profits of a business
* Lesson 2: How to perfectly position your offer so it gives your prospects EXACTLY what they want
* Lesson 3: Increasing Your Leads… the 3 vital elements of any lead magnet
* Lesson 4: Increasing Your Conversions… learn the most under-utilized business asset that can literally double… even TRIPLE your conversion rates overnight
* Lesson 5: Increasing Your Profits… learn 5 of the 3-word phrase that will increase your average profit per customer
* Lesson 6: How to set up an “Invisible Selling Machine” in your business to increase your sales frequency…
Register for the “Double Your Sales” course by clicking on the image below…
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Read more: digitalmarketer.com