When it comes to driving your business forward and understanding the best way to undertaking marketing in the digital age, we can all benefit from some guidance at times.
This guide is the ideal place to understand digital marketing and know how to use it to benefit your business.
In business, it helps to have a system; in fact, it helps to have THE SYSTEM.
All of the major names in business have developed their own system and use this as the template for their business. Even though they have issues and troubles to overcome, major firms like McDonalds and Tesco are so successful because they have systems that they know work, and they follow that system. It is the exact same for Amazon and when it comes to leading brand names in a sector, their employees know what works and how they should be working to make sure that the business is a success.
Don’t be fooled into thinking that only big firms can benefit from working in this manner. It can be of great benefit to start-ups and companies being led by one or two people. It can also work whether you sell products, services or even digital products.
Our system capitalises on the fundamental elements of business growth cited by Jay Abraham:
You can only grow your business 3 ways.
You have to increase the number of customers that you have
You have to increase the average transaction value for every customer
You have to increase the number of transactions for every customer
We work to a system very similar to this, we call it Rocket Marketing System or RMS.
You will find this information to be very important, and it is the sort of information that they don’t tell you about in business school. Familiarise yourself with the system, even print it off and place it on your wall or keep it in a binder on your desk.
In fact stop right now and print your copy for your wall. This is really important stuff you need to think about this constantly while growing your business.
Just make sure that you feel comfortable with the information and that you are ready to implement this into your business. The good thing about the RMS is that can help you in all of your advertising strategies or tactics, so make sure that you are comfortable with what is on offer.
The steps of the system are:
Choose a product and the market fit.
Decide upon a traffic source.
Create a lead magnet and offer it.
Offer up a tripwire.
Offer your core product.
Provide a profit maximiser.
Set up a return path.
These steps can be used for any sort of business and on any type of product or service, so don’t worry about whether it is suitable for your business, just focus on understanding what is on offer because it will boost your business.
Step 1: Choose a product and the market fit
Business can be difficult but it should also be quite simple. If you can move a person from a “before” state to the “after” state that you want, you get paid. For the “before” state, the customer will be unhappy or have a desire that is going unfulfilled. It may be that they are bored, tired, frightened or in pain. For the “after” state, the life of the buyer is improved and you have helped them move from the state that troubled them to a happier position.
It is important to remember that people do not buy products or services; people buy outcomes which will provide them with access to the “after” state. If you have a brilliant offer, people will naturally move towards the “after” state and if you have strong marketing, you will be in a position to articulate this move from the “before” to the after state. This is where many businesses fail and they fail because:
They don’t have an offer that will move someone to the “after” state.
The marketing fails to describe the movement from “before” to “after”.
You have to be clear about the outcome that your offer will provide to people.
To make sure that you are clear in what you offer, ask yourself these questions:
What does the customer have in the “before” state and what does the customer have in the “after” state?
How does your customer feel in the “before” state and how do they feel in the “after” state?
What makes up an average day for your customer in the “before” state and what makes up an average day for your customer in the “after” state?
What is the status of your customer in the “before” state and what is the status of your customer in the “after” state?
A good way to lay-out these questions is to use a before and after grid so you can lay out the answers side by side, making it easier to tell the difference between the two responses.
As an example, think about a business that sells marketing services. Being profitable is hugely important for any business owner, but it can be difficult and challenging. You are looking to move from loss making to profit, they start struggling to get by and you need to get them to to the “after” state, where they now have customers on demand.
To answer the above questions:
You are moving the business owner from HAVING a no customers or very few to HAVING a quality customers on demand.
You are moving the business owner from FEELING stressed and worried to FEELING confident and in control.
You are moving the business owner from having an AVERAGE DAY that was challenging to having an AVERAGE DAY where they are spending quality time growing their business.
You are moving the business owners from a STATUS of feeling embarrassed to a STATUS of feeling on top of the world.
The minimum level of marketing that many businesses undertake will only state what a customer will HAVE if they buy the product or service. Marketers that achieve success will be able to tell a CUSTOMER how they feel, how the AVERAGE DAY can be improved and how their STATUS will be positively impacted upon.
The change from “before” to “after” is crucial and this should now come across in your copy. A good copywriter will be able to create a marketing message that impacts on the customer.
“Making your business profitable with customers on demand, doesn’t have to be a difficult and scary challenge”
“Banish the stress of running your business! By knowing exactly how many customers you will attract each month you can remove the guess work from running your business”
“Your business will benefit from being able to control the flow of customers to the business. Gone are the days of feast and famine”
These examples move the business owner from “before” to “after”, removing the stress and strain of the situation and making things better for the business
You will also find that the movement from “before” to after” can also impact on how much you can charge for your product. (Hint you need to be charging more for your products and services)
This is because the distance between the “before” and “after” states is recognised as VALUE. If you want to charge a higher price for the product or services you offer, create more distance between the “before” and “after” state. You can do this by:
Making a better offering (product or service)
Clearly articulate the movement from “before” to “after”
Keep things simple
You also want to make sure that you are clear with respect to the “before” and “after”. If you are unable to do this, you may not have the right product/market fit. If you are unable to get this stage right, you may well struggle at every point because the system and process is dependent on having access to a group of people that are willing and able to buy.
Step 2: Decide upon a traffic source
It is very likely that you DO NOT have a traffic issue. You may have issues with your business model, in your offer or even in measuring what you do but you DO NOT have a traffic issue.
When it comes to traffic, you need to understand:
How you can measure traffic to know what it is worth.
How you can gain the highest level of immediate value from traffic.
That tactics aren’t of benefit if you do understand the RMS process.
If you have no system or context you will be frustrated.
You have to stay focused on a single source of traffic and then master it. Once you master it, add a second source of traffic and then master that, and so on and so on.
Your traffic sources should include:
Organic Social Media
Social Advertising (Facebook/Twitter/YouTube ads, etc)
The traffic strategy that you use is all about your end goal. If you are looking to acquire new customers and leads, your traffic strategy is all about driving visitors into the Rocket Marketing System funnel that you have set up.
Knowing what you can afford to pay for traffic and what benefit you receive from this expenditure is the crucial factor because there are many ways in which you can pay for traffic and achieve success.
Step 3: Create a lead magnet and offer it
The following two sections (“Create a lead magnet and offer it” and “Offer up a tripwire”) outline how you can expand your business via the first of the methods cited by Jay Abraham, increasing the number of customers.
The Lead Magnet is a great enticement that provides a large level of value to a potential customer in exchange for information that they hold, usually contact information. While no money changes hands at this point, IT IS A TRANSACTION, and it is normally the very first transaction you have with a customer.
It is important to provide great value with a lead magnet. The lead magnet is normally provided on a web page that is referred to as a squeeze page or a landing page, and this page will have been optimised to convert leads. You don’t need a fancy landing page, it just needs to do the task that you need it to.
The role of the lead magnet is to increase the leads that you have. As the lead magnet is placed nearer the top of the RMS funnel, being able to increase the number of opt-ins at this point will pay off throughout the rest of the process.
You should bear in mind that not all lead magnets are created equally or can be as successful. The most important thing to get across with your lead magnet is being focused. You need to be laser focused with your lead magnet.
(Seriously, who is going to sign up for another newsletter?? Not me thats for sure)
You need to have an offer and it needs to be specific. Your customer isn’t looking for an e-course spread out over 20 parts, your customer has an issue or problem that they want resolved. They are looking for a solution and a good lead magnet will solve an issue or problem for a certain segment of the overall market. If you do this, you will generate more leads and an increase in leads will lead to more Tripwire sales.
Step 4: Offer up a tripwire
If you can understand this step and get it right, you will find yourself ahead of your rivals and competitors. The number one aim at this step to increase the number of customers that you have and the use of the lead magnet has generated leads, but it hasn’t delivered new customers yet.
The Tripwire offer is aimed at those who have shown an interest via the lead magnet. Your Tripwire should usually be an irresistible offer available at a super low price (offering deals for £1/$1 or up to a reasonable value exist to solely bring people on-board and convert the prospects into buyers). Obviously, the cost of the offer should be relative to the overall cost of your product or service and high cost products can have successful Tripwire offers at a high price, just make sure that it is relevant.
You have to make a Tripwire offer that is impossible to resist or turn down. A very common way of doing this is to sell your Tripwire offering at cost, or even at a loss. You will not be able to make a living from your Tripwire offering but you will be able to acquire buyers, and this is where the real value comes in. There are few things, if any, in business that are more valuable than having access to a list of buyers.
When you understand the Rocket Marketing System, you understand how vital the Tripwire offer is and how important it is to your business, even if you are unable to make a profit from the offer.
Readers of a certain vintage will remember in the 1980s and 90s that a number of music labels and companies would provide buyers the chance to buy a collection of albums (be it on vinyl, tape or cd) for a low price. There were some offers that provided people with 10 CD albums for £1!
(I bloody loved this as a young lad, I could not believe the value they gave.)
This was a deal that people signed up to in droves to save money and while it sounds like a big loss-maker to the company, the benefit of acquiring a list of buyers was the biggest aspect for them.
You can carry out Tripwire offerings with physical products, books, software, paid webinars or even services.
Tripwires are a very common part of business and they are all around us. You may have heard that Amazon sells Kindles at a low price, and this is true, and it is a great example of a Tripwire. Even if Amazon makes a loss on every Kindle they sell, when people buy books or apps to place on that Kindle, Amazon makes the sale. You will find it with companies who are on Groupon or any other coupon based company. You may think that getting £50 worth of food for £20 is a great deal for you, but it is also a great deal for the company because they can then reach out to you directly.
A Tripwire strategy is simple:
You should look to convert the highest possible number of lead magnet leads into customers that pay, even if you impact on your profit margin. You should do this because if you acquire a paying customer, your will obtain a profit through the following three steps:
Offer your core product
Provide a profit maximiser
Set up a return path
Now that you understand the value of increasing the number of customers you have, we will focus on increasing the average transaction for every customer.
Step 5: Offer your core product
You should already have a core offer in place, it should be your flagship product or service. A lot of businesses try to place their core offers to cold prospects, but they find that this gets them nowhere. However, if you are able to make your core offer after a lead magnet and a Tripwire offer, you should find that your sales increase greatly.
This makes sense because you have already had two successful transactions with the buyer and it is vital that you over-deliver on these offerings.
It is possible to make enough sales, or the right sales, from your core offer that you become profitable but you don’t need to, and it can be difficult to achieve. When it comes to utilising the Rocket Marketing System correctly, many businesses take everything that they receive from the core offer and then reinvest it to pick up more customers. This is the way to build a business and if you do it right, you can achieve great success. It is possible to create a system where you spend more than your rivals when it comes to acquiring customers. With so many businesses trying to make their profits from a core offer, think about how strong you will be if you don’t have to make a penny of profit from your core offer?
Jeff Bezos from Amazon stated about business rivals; “Your margin is my opportunity.” You have an opportunity to spend more on acquiring traffic, on converting and increasing the value of what you offer.
With this in mind, will it shock you to learn that a great number of hugely successful businesses do not make any profit until the reach the following two stages? This is where the process becomes very interesting.
Step 6: Provide a profit maximiser
The second stage of the business growth model cited by Jay Abraham is to increase the average transaction value for every customer and this is what the Profit Maximiser does. You will find that many businesses do not have a Tripwire Offer and they do not have a Profit Maximiser. They try to solely live on their core offer,and they try to reach out to cold prospects. This is why these firms struggle and if you follow the Rocket Marketing System, it is why you won’t.
A great example of how to do things right can be seen with McDonalds. McDonalds makes virtually no money on their hamburger, which is their core offer. However, when they have the Profit Maximiser of fries and a soft drink, the profits soar. This is referred to as an “immediate up-sell” and they are not the only company that performs in this manner. If you have ever bought an electrical good or a white good at a great price, were you then offered a warranty, installation support or general IT or assistance? These are profit maximisers.
Again, look at Amazon. They have a cross-sell profit maximiser when they state “People that bought this item, also bought these items”, and this can raise the average basket value. Amazon also offers a Bundle Profit Maximiser with the “Frequently Bought Together” offering. You should also consider Premium Subscriptions, through a recurring billing system, on membership websites can serve as a tremendous Profit Maximiser.
If an offer is made after the initial sale, it is a Profit Maximiser. The largest level of expense for a company is the cost of acquiring the customer, which your Tripwire Offer should take care of, and then after this point, everything can play a role in increasing the immediate and lifetime value of a customer.
This means that you should think about:
What could you offer as a cross-sell or an up-sell?
Is there anything you can bundle together with your core offer?
Can you incorporate a membership or subscription service to your business model?
When you find your Profit Maximiser, your business will become unstoppable.
There is also one more way to grow your business.
Step 7: Set up a return path
The final way to grow your business is to increase the number of transactions that you have with a customer and this is why setting up a return path makes sense. The aim of this return path is to develop frequent and strategic communication with prospects and buyers that will ensure they buy from you on a regular basis. You have contact information for these people, obtained through the lead magnet, and this means that you have the ability to reach out to these customers time and time again.
It is possible to offer new lead magnets, new Tripwires, new Core Offers and new Profit Maximisers because you have people’s permission. You can even take them back to any Tripwire offerings, Core Offers or even Profit Maximisers that they didn’t buy the first time.
The Return Path plays a vital role in bringing your customer or prospect back to you on a regular basis and it can include:
Organic Social Media
Outbound Sales Calling
These are all powerful but not as powerful as an automated email follow-up. Email marketing is vital and with the right email marketing strategy, you can create the perfect Return Path, and look forward to great success with your business.