I wanted to share with you a quick video about customer acquisition. In particular, how to acquire the most customers quickly from the web. Take a quick look below and I’ll explain more.
One of the things we’ve learned from Jeff Bezos of Amazon, is he or she who acquires the most customers wins. And you might be thinking why is this?
Traditional thinking is all focused on ‘you need to acquire the highest number of leads’, which is definitely valid but what we do know about acquiring ‘customers’ as opposed to ‘leads’ is that customers are 10 to 11 times more likely to buy from you again than leads.
So, you’re actually better off with a database of 1,000 customers than you are with 10,000 leads. One principal which was just pivotal for us was when we learned the principal of the Tripwire. I learned this from Perry Belcher.
I was in LA and Perry shared a story with me that really hit home with me, and I hope that it does the same for you. Perry lives in a place called Austin, Texas, and he lives in an affluent section of Austin, Texas which they call Millionaire Mile. It’s basically five or six streets of really, really amazing houses.
It was a Saturday afternoon. He gets a knock at the door. His wife get the door and there is a guy there offering to mow his lawn for $5. Perry thinks about it and is standard mow is $42, so he is thinking this a good deal. He talks about it with his wife, and then they agree to go ahead.
The guy goes out. He does an amazing job on the lawn, which is important – You’ve got to do a good job of it. He comes back. They pay him the $5, and he gives them a fridge magnet and a voucher that says we’ve got a special at the moment for second mows of $10.
So then when they need to get the lawn mowed again, rather than get the $42 mow which is their standard mow, they use their voucher. The guy comes back. He does an amazing job, then they do the same thing again. Fridge magnet, voucher, third mows of $30 and basically steps him up so he’s nearly at the same price. But what he’s done there is he’s acquired a customer, which is really, really smart.
But he hasn’t just acquired any customer, he’s thought about who his ideal customer is – in this case the affluent customer, and then he hasn’t just hit up Perry. He’s made the same offer to all the affluent houses in those streets. What we do know from a business owner point of view is if you can get all your customers geographically together you can reduce your costs – and that’s going to be so much better from a time and profitability point of view.
So, it’s a really, really smart concept of how can you acquire your ideal customer. You might be thinking okay, well that works for the landscape gardener, but what about me?
You know in our business we deal with free plus shipping USB’s sticks, other people do it with free plus shipping DVDs. See example below
We do free plus shipping USB sticks, or it might be a splinter offer where it’s part of your product or info product. The real thing is figure out later exactly what you’re going to offer as a tripwire, which is a low price irresistable offer. The real thing about it is take that concept on board and figure out how can you apply it in your business and just make it happen.
I hope you got some good value on that. I know we certainly did when we learned about it. It would be great to hear your thoughts or experiences on this subject. Please share below have you had any success with the tripwire or do you have any questions about what may or may not work?