In 2010 Bedros and I met a guy that was down and out, but he was trying to put on a strong face. It was at Frank Kern’s List Control event in San Diego where we became friends, and we even had a memorable dinner down at Roy’s Hawaiin Fusion restaurant on the water.
But then our new buddy disappeared.
He was gone from the scene for over a year. I presume he used that time to become a better person, to clear away his problems, to overcome his obstacles…and then BOOM! Suddenly in 2012 he was back in the online info business world and he was a true Go-Giver.
Some incredible transformation had occurred. He later told me it had a LOT to do with our ETR essays and coaching from Bedros.
(That’s why I highly recommended that you attended this life-changing free webinar with Bedros. Let me know what you thought of it if you made it.)
Since turning the corner in his life, Shaun Hadsall has become a leader in our industry, and the 3rd best copywriter I know (after only Joel Marion and Jon Benson). Shaun has come ‘back from the dead’ and today he generates thousands of dollars in sales every day. Soon his business will be even bigger than the Godfather’s…if he keeps up this Go-Giving!
Shaun has even built his own team of Go Givers, from his business partner, Ryan Colby, to their publishing partners, Nicky “P” Pineault and Dan “The Man” Long). Recently, Shaun and his Go-Giver Team promoted one of my workout products, and their results teach us a big less about the power of:
RFM: Recency – Frequency – Monetization
Here were the results of their various lists:
Shaun’s “NEW customer” list: Earnings-Per-Click = $1.05
Nick’s List: 87 sales, EPC = $0.71 (great for a nutrition list!)
Shaun’s “old customer” List: 54 sales, EPC = $0.43
The results varied between lists for several reasons.
First, “Message-to-Market-Match”, as Dan Kennedy calls it. Selling workouts to a nutrition list is always a tough sell, and in most cases, next to impossible. Expect a lot of tumbleweeds blowing across your order page when you try this.
Fortunately, thanks to Nicky P’s persuasive copywriting skills, he was able to successfully convince his readers of the great value in my workout videos. He overcame a less-than-optimal MtoM-Match, but it’s a lot easier to simply find the perfect products to share with your list. Just take a look at what they have already bought from you and why, and then suggest complimentary programs that solve a similar problem. That’s the best way to find affiliate partners to promote.
Second, the Recency-Frequency-Monetary Analysis Effect came into play. Here’s the definition of that $10 term from:
“RFM (recency, frequency, monetary) analysis is a marketing technique used to determine quantitatively which customers are the best ones by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary). RFM analysis is based on the marketing axiom (Pareto Principle) that ‘80% of your business comes from 20% of your customers.
“For more than 30 years, direct mailing marketers for non-profit organizations have used an informal RFM analysis to target their mailings to customers most likely to make donations. The reasoning behind RFM was simple: people who donated once were more likely to donate again. With the advent of e-mail marketing campaigns and customer relationship management software, RFM ratings have become an important tool. Using RFM analysis, customers are assigned a ranking number of 1,2,3,4, or 5 (with 5 being highest) for each RFM parameter. The three scores together are referred to as an RFM ‘cell’. The database is sorted to determine which customers were “the best customers” in the past, with a cell ranking of ‘555’ being ideal.
“Although RFM analysis is a useful tool, it does have its limitations. A company must be careful not to over-solicit customers with the highest rankings. Experts also caution marketers to remember that customers with low cell rankings should not be neglected, but instead should be cultivated to become better customers.”
The smaller, but most recent customer lists (Shaun’s NEW list & Nicky P’s list) significantly outperformed Shaun’s larger, but older list.
Here’s what you need to know.
As soon as a prospect becomes a customer, they immediately raise their hand as being your best immediate/future repeat customer. They have voted with their wallet, the only vote that counts in business. This is the time to sell again to them, even though your initial reaction would be of one to hold off on trying to sell them anything else.
But remember what R-F-M tells us. People that buy are most likely to buy again, particularly the people that bought most recently, as they are “hot” for your solutions.
Don’t hold back. Increasing your customer value and optimizing your funnel – while delivering excellent value and more solutions to your customer – are the keys to growing a profitable business.
Today’s 10 minute task is two-fold.
First, figure out the best products to sell right away to your newest customers. They have problems and YOU have their solutions.
Second, identify who has the newest customers in your industry (i.e. who did the most recent product launch) and figure out how you can get these other experts to promote your product to their new customers.
These are two insider secrets to rapidly extracting huge net profits from your business so that you have more money to buy new customers and repeat this virtuous sales cycle.
Your life is great enough. Focus your energy on sharing your success with others. Mentor someone. Show them the way. Help more people get what they want and deserve. Add more value to the world and you’ll get everything you want & deserve, too.