Ditch_Leads_and_Acquire_Customers

Reality

Copyright response mine interactive 2010. All rights reserved. ☺

Ditch Leads. Acquire Customers.

Or

The Killer Business Strategy

12.8.10Copyright response mine interactive 2010. All rights reserved. ☺


@KenRobbinsWhat’s Important?


On average, the lifespan of a Fortune 500 company

is 40 years.


Real Meetings. Actual Decisions.


Real World: Average Nonsense

A national home services company.12 repair services ranging in price from

$350 to $13,000.

$25 CPL target for every service.


Real World: Travel Policy

Airline has connection delays from Europe. Last leg is a largely empty flight.

No more passengers were eligible for upgrades so……airline upgrades 7 dead-heading

employees in Business Class.


Real World: Volume vs. Profits

Publicly-traded continuity product marketer LTV model allows for $400 cost-per-new-patient.

It loses money if it pays more than $600.

30% of its customers come in at ~$700 ea.


10,000 legacy rate plans

New plans at least 20% cheaper

Don’t ask, don’t tell renewing customers because “we need the profits.”

Real World: Wireless Disconnect


Real World: Checked Out Resort Hotelier

= ADR $209 + 20% discount

Digital Marketing = ADR $239 @ 14% marketing cost

Decision- Pause digital marketing


Real World: Budget Politics

“Here’s $200,000 marketing budget left over that I have to spend before year end.” “If I don’t spend it I’ll lose it.

- Fortune 500 ClientProbably happens at all 500.


Real World: Form over Substance

Client desire: increase form leads (70% calls)

Reason: Client assumes 70% of calls are customer service

Audit: 60% of calls are new sales at ½ the cost

Decision: “But I still really need more forms”


Real World: Short Term Memory

Between 1993 and 1995 a player traveled to Vegas and stayed at Luxor 18 times and was given full RFB

comp.

After a break from the action, attempt to book

in 1997 was met with “we don’t have you in our system”


Basic Strategy


The Killer Business Strategy

Efficiently acquire high value customers.

Allow

ables

Measure

Database CRM

Report / an

alyzeTest

Recogni

ze

SegmentScore Lifetime

Values

Comm

unicat

e Repeat purchase

Reward


Efficiency

European Family Vacation


Efficiency


Acquiring / Repeat


Efficiency + Loyalty

You are either focused on…

TransactionsCustomers


Every Client has …friends who vacation annually.

…a place they “love to go”…special interests & preferences

Unlike healthcare, legal, roof repairs or other industries, travelers can be acquired.

This is especially true for Luxury travelers


Common Customer Acquisition

Misteaks


Fail to act on the fact that some customers are more valuable.

#6


From Angel Customers & Demon Customers- Larry Seldon


From Angel Customers & Demon Customers- Larry Seldon

125% Top 8 Deciles


Report revenues / bookings without breaking out

new customers acquired, repeat clients, referrals

#5


Install a complex IVR to “help” the caller.

#4


IVR



Fail to get other value from a lead that did not convert.

#3



Use departmental budgeting and tolerate company politics

#2


… and #1


Don’t improve conversion.

#1


Improving Conversion

marketingwebsitephone



Horizontal vs. Vertical Forms

+26%



7.8%

10.2%


10.3%

10.2%



9.4% 14.4% 11.2%



+10%



+50%


“Ken, where can we learn more?”


Efficiently Market

High ValueAcquire & Keep


Interesting People to Follow

@pricing

@landingpagetips

@unbounce

@60SecondTweets

@annatalerico

@JeffreySummers

@acquirecustomer

@performableCopyright response mine interactive 2010. All rights reserved. ☺

Advice

“How many new clients last month, quarter?”


Advice

“Who are our client types,

What are the acquisition costs, revenues and margins for each type?”


Advice

Learn why your best customer books through you.


Advice

Start reporting on new clients acquired by each

marketing effort and share with all your staff.

Start reporting on repeat bookings too. ;-)


Trust.


Efficiently acquire high value customers.


Now… prizes


Thank You.Remember - @KenRobbins ;-)


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Ditch_Leads_and_Acquire_Customers