Podcast Summary
Understanding why customers aren't sharing your product: Focus on improving customer experience to generate sales and word-of-mouth referrals. Identify reasons why existing customers aren't promoting your product to others.
The quality of your product plays a crucial role in attracting and retaining customers. If you're not making the sales you desire, it's essential to confront the possibility that your product may not be meeting the needs or desires of your audience. It's not enough to rely on the belief that more exposure will solve your problems. Instead, consider why existing customers aren't referring new business. As Dan Kennedy put it, smaller entrepreneurs focus on making sales to get customers, while bigger entrepreneurs focus on getting customers to make sales. By shifting your perspective and prioritizing the customer experience, you can create a product that not only generates sales but also inspires word-of-mouth referrals. Remember, people have already discovered your product, so it's essential to understand why they aren't sharing it with others. By addressing this issue, you'll be well on your way to building a successful business.
Shift focus to creating more value for customers: Consider increasing product price and focusing on delivering significant value to make it worth the investment, indicating a valuable product or service that compounds over time.
Creating long-term relationships with customers and providing value over time is a key aspect of building wealth. The ultra-wealthy have a compounding view on time and value, meaning they invest in products or services that grow on their own and provide significant value over time. To shift your perspective, consider the following questions: If you were to drastically increase the price of your existing product or service, what would you need to deliver to make it worth that investment? This line of thinking can help you focus on creating more value for your customers and building a product or service that is worth investing in for the long term. Additionally, if your product or service requires consistent promotion and sales efforts, it may be an indication that the product itself is not delivering enough value. By focusing on creating a valuable product or service that compounds over time, you can build a successful enterprise that attracts and retains customers.
What justifies a higher price?: Consider what additional value or experience would justify a higher price, maintain profitability with a lower price, and create exceptional experiences to drive word-of-mouth growth.
When considering the pricing and value proposition of a product or service, it's important to ask yourself three key questions. First, if your product or service were significantly more expensive, what would it need to offer in terms of experience and value to justify the price? Second, if it were much cheaper but needed to provide greater value to maintain profitability, what additional assets or improvements would be necessary? Lastly, if you could only acquire one more customer through word-of-mouth, what would you need to do to create such an exceptional experience that they would naturally share it with others? By reflecting on these questions, you can ensure that your product or service consistently delivers value that resonates with your customers and drives sustainable growth.
Three Essential Frames for Creating a Successful Product: Successful entrepreneurs prioritize value, profit, and customer experience frames to create a strong product foundation, effectively promote it, and ensure long-term growth. Utilize various customer acquisition methods, but prioritize delivering a remarkable customer experience for powerful word-of-mouth promotion.
When it comes to creating a successful product or service, there are three essential frames to consider: value, profit, and customer experience. The value frame focuses on creating a valuable product that meets customer needs and exceeds expectations. The profit frame considers the cost of production and the potential for high margins, allowing for sustainable business growth. Lastly, the customer experience frame emphasizes the importance of creating a remarkable experience that turns customers into raving fans, leading to valuable word-of-mouth promotion. Successful entrepreneurs prioritize all three frames, recognizing that a strong product is the foundation for effective promotion and long-term growth. When considering the various methods of acquiring customers, it's important to note that paid media, such as advertising, and promotion, are just the beginning. Earned media, through organic followings, is valuable but requires time and effort. Utilizing your contact list and engaging in manual outreach can also be effective, while partnerships with affiliates can expand your reach. However, the most powerful method of acquiring customers is through word-of-mouth, which compounds over time and requires a strong focus on delivering a remarkable customer experience. Ultimately, a well-rounded approach that prioritizes all three frames and effectively leverages various customer acquisition methods will lead to a successful and sustainable business.
From promotion to people and product: Focusing on making your product exceptional and worth sharing leads to exponential growth through word-of-mouth referrals, while outbound sales and advertising have linear growth. Ultra-wealthy understand this concept and prioritize it.
Not all methods of acquiring customers are created equal. Some, like outbound sales and advertising, scale linearly, meaning if you double your efforts, you get roughly double the results. However, word-of-mouth referrals are the exception, as they compound, meaning the results grow exponentially over time. This is why focusing on making your product exceptional and worth sharing is crucial for creating enduring value and profit. The ultra-wealthy understand this concept, as everything they do compounds over time, making time an asset rather than a liability. In contrast, constantly having to go out and acquire new business can be a drain on resources and requires ongoing effort. The shift from promotion to people and product has been a game-changer in my own career, and I encourage you to consider the same approach.
Invest in creating high-quality offers for significant returns: Focusing on creating compelling offers can lead to loyal customers and top sales, rather than just making a quick sale
Investing time and effort in creating a high-quality product or offer in the beginning can lead to significant returns in the long run. Many people focus solely on making the first sale, neglecting the importance of providing value to the customer. The speaker, who has written a book on the subject, emphasizes the importance of creating offers that are so compelling, customers feel foolish for saying no. This approach not only helps build a loyal customer base but can also lead to being the number one seller in a category on platforms like Amazon. The speaker encourages listeners to invest in their offerings and not just focus on making a quick sale. If you're interested in learning more, the speaker's book, titled "$100,000,000 offers," is available for just 99¢.
