Yo!
Was chatting to a GM+ member on Friday and we landed on the concepts of revenue growth. Specifically what the biggest brands out there do to hit ever greater profit.
I wanted to share what we discussed here with you.
Mainly because there's a lack of focus on this in the real world.
Most people are still focusing on things like...
- New client acquisition
- Vanity metrics of likes, shares, comments etc
- Revenue instead of profit
All of the above can be useful, but they're not the focus - or at least, they shouldn't be.
Look, acquisition and making sure your AoV is at least (roughly) equal to CPA is key to scaling your biz as it gives you more opportunities.
But the real profit driver is LTV - lifetime value.
How much each customer pays you across the lifetime of their relationship with your business.
I wanna break down something that will help you increase that LTV for your business.
It comes down to something the GM+ member picked up in an interview with the CMO of PwC, Antonia Wade.
Antonia explains it as "share of wallet".
Which is essentially...
How many of your top clients are buying every service they could from you?
So you essentially look at all of your services and offers.
Then you look at how many of your top clients are buying these.
Then make sure those top clients can easily buy more of those offers.
It plays well inot the Pareto Principle for revenue.
80% of money made will be from 20% of your customers.
So, you're essentially making sure that the 20% of your audience are able to buy more from you.
The real question is, how can you capitalise on this?
I'll give a high level overview here, but I'm also building a full system for you to follow in GM+ for this as well.
How to increase your profit potential
In essence, launch more offers.
Take your core hero offer and split it into 12 "micro offers".
Each of these is built like the typical $1 product system with bumps and upsells.
This gives you...
- 12 DIY entry points into your business
Which could be 12 ad campaigns to hoover people up from different segments of your audience.
If the value is there, it deepens the relationship.
Each micro-offer solves one small problem, delivers a quick win, and leads naturally to the next step where you can increase your "share of wallet".
You can then either...
-
Create individual paths to higher-ticket offers like...
- Assistance in implementing (DWY for that offer)
- Add people to your wider ascension for your primary core offer
You also then have multiple smaller ticket items to re-engage past buyers and kick the whole system off again with easy ongoing promotion.
Then, it's just a case of having the right promo system so this doesn't feel like some kind of odd overwhelm.
I'm gonna put an easy-to-follow system for this into a course for you which will be released soon.
If you've got any Qs, hit reply and let me know.
Pete "12 offers per year" Boyle