Ditch_Leads_and_Acquire_Customers

Reality

Copyright response mine interactive 2010. All rights reserved. ☺

Ditch Leads. Acquire
Customers.
Or
The Killer Business Strategy

12.8.10

What’s Important?
@KenRobbins


On average, the lifespan of a Fortune 500 company

is 40 years.


Real Meetings. Actual Decisions.


Real World: Average Nonsense

A national home services company.
12 repair services ranging in price from
$350 to $13,000.

$25 CPL target for every service.


Real World: Travel Policy

Airline has connection delays from Europe.
Last leg is a largely empty flight.
No more passengers were eligible for upgrades so…
…airline upgrades 7 dead-heading
employees in Business Class.


Real World: Volume vs. Profits

Publicly-traded continuity product marketer
LTV model allows for $400 cost-per-new-patient.

It loses money if it pays more than $600.

30% of its customers come in at ~$700 ea.


Real World: Wireless Disconnect

10,000 legacy rate plans
New plans at least 20% cheaper

Don’t ask, don’t tell renewing customers because “we
need the profits.”


Real World: Checked Out
Resort Hotelier

= ADR $209 + 20% discount

Digital Marketing = ADR $239 @ 14% marketing
cost

Decision- Pause digital marketing


Real World: Budget Politics

“Here’s $200,000 marketing budget left over that I
have to spend before year end.” “If I don’t spend it I’ll
lose it.

- Fortune 500 Client
Probably happens at all 500.


Real World: Form over Substance

Client desire: increase form leads (70% calls)

Reason: Client assumes 70% of calls are customer
service

Audit: 60% of calls are new sales at ½ the cost

Decision: “But I still really need more forms”


Real World: Short Term Memory

Between 1993 and 1995 a player traveled to Vegas
and stayed at Luxor 18 times and was given full RFB
comp.

After a break from the action, attempt to book
in 1997 was met with
“we don’t have you in our system”


Basic Strategy


The Killer Business Strategy

Seg ues
s

ard
Tes able nalyze men Va l
t/a

Re w
time
ow
Meas t epor Scor t
ife
All

ure R e L
Efficiently acquire high value customers.
cog nize
Dat Repeat
Re
te
aba
unica

se
CR
Comm

M
purch
ase


Efficiency

European Family
Vacation


Efficiency


Acquiring / Repeat


You are either focused on…

Transactions
Customers


Every Client has
…friends who vacation annually.
…a place they “love to go”
…special interests & preferences

Unlike healthcare, legal, roof repairs or other
industries, travelers can be acquired.
This is especially true for Luxury travelers


Common
Customer Acquisition
Misteaks


#6

Fail to act on the fact that
some customers are more valuable.


From Angel Customers & Demon Customers- Larry Seldon


125% Top 8 Deciles

From Angel Customers & Demon Customers- Larry Seldon


#5

Report revenues / bookings without breaking
out
new customers acquired, repeat clients,
referrals


#4

Install a complex IVR to “help” the caller.


IVR


#3

Fail to get other value from a lead
that did not convert.


#2

Use departmental budgeting and
tolerate company politics


… and #1


#1

Don’t improve conversion.


marketing
Improving
website
Conversion
phone


Horizontal vs. Vertical Forms

+26%


7.8%

10.2%


10.2%

10.3%

9.4% 14.4% 11.2%


+10%

+50%


“Ken, where can we learn more?”


Efficiently Acquire & High Value
Market Keep


Interesting People to Follow

@pricing
@landingpagetips
@unbounce
@60SecondTweets
@annatalerico
@JeffreySummers
@acquirecustomer
@performable

Advice

“How many new clients last month, quarter?”


Advice

“Who are our client types,
What are the acquisition costs, revenues and
margins for each type?”


Advice

Learn why your best customer books through you.


Advice

Start reporting on new clients acquired by each
marketing effort and share with all your staff.

Start reporting on repeat bookings too. ;-)


Trust.


Efficiently acquire high value customers.


Now… prizes


Thank You.
Remember - @KenRobbins ;-)


Ditch_Leads_and_Acquire_Customers

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