The easiest (and cheapest) customer to acquire is an existing customer! Do you know the lifetime value of your client, their normal behavior in regards to your services, and how do you track it? That is valuable information you need to know to ensure growth for your business. Listen as we break down the 4 metrics you must have in place that go beyond just getting new sales.
Hey, everybody, it's Tara, Bryan, and you are listening to the course building secrets podcast. Whether you're a coach or a CEO, the success of your team and clients is based on your ability to deliver a consistent experience and guide them on the fastest path to results. This podcast will give you practical real life tips that you can use today to build your online experiences that get results and create raving fans. Why? So you can monetize your expertise and serve more people without adding more time or team to your business? If you're looking to uncover your million dollar framework, package it and use it to scale you're in the right place. Let's dive in.Tara Bryan:
Hey, everybody, in today's episode, I want to talk about your business metrics. I know I know, not very exciting when we have to talk about metrics or data or how we're measuring things within our business. But I want to spend a few minutes talking about this today. Because here is the reality is most people spend a lot of time tracking their marketing and sales metrics, but not necessarily their customer results metrics. And I'm going to tell you, that you're leaving a ton of money on the table by not looking at what's happening once they become a customer. Alright, so let's dive into this. So here's here's the reality is, as you're growing, you're starting your business, and then you're growing your business, you're you're focused on two things, right? You're focused on acquiring new customers, right, you're gonna need people in the door, you need people who are gonna buy your thing. And so you're focused on acquiring customers marketing, you know, you're either organic, or paid or what whatever you're doing, right? A lot of times, we spend a lot of time trying to find new customers, right? We're on social media, we're using paid ads, we're speaking, we're on other people's platforms for doing all of these activities to acquire new customers. And that's amazing. And you have to do that when you're starting your business. And then the second thing that that is happening is you're building your product, you're building your online program, your course your, whatever your fulfillment engine is, right? Do what you do it yourself done with you or done for you services, one of those three things is what you're creating. So So you have to have both, right, you have to have something that you're selling to somebody, again, it could be a product, not necessarily a program or service, but you have something that you're selling to somebody, and then you have, you have to find the people who want to buy the thing that you're selling, okay, that this is business 101. Alright, so you know, the, that you need those two things. So conventional sort of advice is just go out and acquire as many people as you can, doesn't really matter what you have on the backside, just get them in, and once you find them, then you can just, you know, solve their problems. But here's the problem. There's a problem with solving their problems. Isn't most of the time people have your you know, if you're not super clear on what you're providing, what program service or product you're providing, you get, you know, you get people in, and then you spend all your time creating or fulfilling or trying to meet their needs. And it's exhausting. If you have been in that place, it's given me a shout out because you know exactly what I'm talking about. So you spend all your time doing that, right? So so you have a new product, you have something that you're selling, and you're like, Yeah, this is gonna be awesome. It's amazing. This is the best product ever. And then you get people into it, it starts to change starts to morph, and different things happen. But here's the thing is most of the time we are still just focused on how are we doing in terms of our numbers, we know exactly what our cost per click is, we know exactly what's happening with our ads, we know exactly how much it costs to acquire a customer. But how often are you looking at the lifetime value of your customer, right? How much each customer's worth in terms of the full lifetime that they stay with you because most of the time they buy one product and then they buy another and then they buy another and that's a sustainable business model. Right is if you're ascending your customers to new offers, you are getting them in the door and then they stay and and become a customer for life. But a lot of times what happens especially when you get to like, you know, maybe one to 3 million is you start it becomes harder to fulfill it becomes more difficult to to make sure that what you have is meeting everyone's needs. And so if you're not looking at churn, right if you're not looking at lifetime value If you're not looking at customer satisfaction, if you're not looking at, you know how, how people are staying and referring your services to other people, you're, you're missing a huge opportunity in your business. Because the reality is it costs a ton of money to acquire a customer. But once you've acquired them, it's as long as you do a really good job, and you help them solve the problem they're coming to you with, it doesn't cost any more to, to get them back in the door, right? They're the ones who are going to keep going, they're the ones who are going to, you know, tell other people about it. And you have sort of that positive feedback loop that helps to grow your business, it's much easier to grow a business, when people are saying this is amazing, they're really, they're really getting results, and you're able to help them than it is to just sort of churn and burn people out. And, and so one of the ways that we help people, is to make sure that you're not only measuring your your acquisition metrics, but you're looking at your fulfillment and retention metrics in equal measure. Because it does make a huge difference. Profitability goes up. Your the cost to acquire customer, you know, is is less because you have the momentum that you need once you have customers in. And, and so if you're in a place where you're feeling like the I've, you know, sort of created this fulfillment mess, when people come in, it's their, their path isn't clear, they're not getting results, my my churn numbers are going up, which just means that people are coming in, and then they're leaving. Right, so those things are happening, you're seeing some symptoms of people maybe not being as happy as they were when it was just, you know, you're sort of hustling and helping and customizing and personalizing every single transaction or interaction with your customers, then it's the time just sort of stop and look at what you need to do to add more efficiency, add more process, maybe add more automation, to dial in that customer experience that you have. Or you want to provide for your customers. Because because both of the pieces to the puzzle, I call it a peanut butter and jelly sandwich actually. So once being a butter and once jelly, you have to have both in a sandwich unless you're weird, like my grandmother used to have peanut butter and butter. That's not really a peanut butter and jelly sandwich, right? So you have to have both pieces of it and look at at your metrics and eat an equal measure. So I absolutely recommend starting with looking at you know, where your customers are tracking their behavior, are they finishing? Are they getting results, and then focus on the results that they're getting? Use that and keep kind of dialing that in so you can help more and more people. Alright, that is my course building tip for the day really start looking at that lifetime value that that the churn number the satisfaction numbers, how long are people staying all of those factors? As much as you're looking at your your customer acquisition factors and see what happens most often the greatest level of growth and profitability and revenue comes in paying attention to what happens when they already are in in the door. All right, there you go. Have a great rest of your day.