Generating revenue is a multi-step process in which you have to progressively nurture people before they are ready to make a purchase. A shoe salesperson is nurturing you when they ask your size, show you lots of options, help you try a few pairs on, and let you know about a deal. It’s giving you the information and support you need to make a decision about buying.
You’ve given the prospect all of the information they need to make a decision by this point; they simply need to make it. Lots of people get stuck in this part of the sales funnel, so it is your job to nudge them closer and closer to making a sale without being too pushy. A great option would be to throw in a bonus for free to to offer a limited-time discount.
Prospects next need time to figure out if making a purchase is the best option. At this point, it often makes sense to back off a bit. In our car salesman example, an important part of the evaluation process is the test drive. Depending on your industry, you may want to give someone a free sample or demo. If you aren’t selling in-person, videos can be extremely effective here. Often, during the evaluation process, prospects need to talk to others about the potential purchase, so this is where building up a loyal fan base comes in handy.
Revenue per customer or customer lifetime value: Typically, you won’t get the same amount of revenue for every customer that you acquire. Some of them might purchase at a discount, some others might purchase several products. If you offer a subscription plan, not all of your customers will stay subscribed for the same amount of time. A simple way to calculate this is to add up all your revenue for a specific period of time, and divide it by the number of paying customers you acquired during that period. The point here is that you should understand how much money, on average, you are making for every customer that you acquire. This will help you work backwards from a revenue goal and determine how many customers you need to hit your goals. I recommend that you only run this analysis periodically instead of keeping track of it every day because you will probably see a lot of variability. Teachable also collects all the data you need to calculate this value—just download a spreadsheet of all of your transactions from the Transactions tab.
According to Pardot, 70% of buyers turn to Google at least 2-3 times during their search to find out more about their problems, potential solutions, relevant businesses, etc. Many people also turn to social media and forums for recommendations. At this point, they aren’t looking for promotional content; they’re looking to learn more about potential solutions for their need.
Direct email: Direct email works great if you have a list of people interested in your business. For example, people who attended one of your in-person workshops, a list of current customers, or a group/community you are a part of or manage. Important: Notice how we specify that these should be people you previously had contact with. We don’t recommend that you purchase email lists to do direct emailing as that can have a number of negative consequences for you and your business.
At the start of this article, I talked about making customers, not finding them, but you can only make customers out of leads. Because your sales funnel only works if you put people in the top, let’s look at some tips to help you find more leads. Not everything will work for every business. Choose the methods that work best for you in terms of your available resources and what works for your audience.
Yesterday I was in the Northridge Mall while my tires were being rotated at Firestone outside. When I walked in there a man was promoting Occulus, the 3D experience. . . for $5 a journey. I didn’t have any bucks so I declined. I was wondering why he didn’t use the email model of a free gift to get a subscriber; I mean a free trip using the mind altering adventure. Then I got to thinking about video and 3D in email, and it dawned on me the cycle of a company’s promotion is a like a trip into virtual reality–at least it could be a mind-altering experience for the recipient, especially for someone who’s tired of getting ads, ads, ads.