Video Transcript: Conversion Funnels - part 3

So welcome back to the final lecture in one of the final modules here on the  marketing class here at the Christian Leadership Institute, we're going to kind of  pick up and continue the process that we've been following on, building the  conversion funnel for whatever enterprise you're working with, whether it's a  nonprofit or whether it's a profit type situation, step number four, if you've been  keeping, and hopefully you've been keeping track of the step number four is  offering what we Call a profit maximizer. The second sale is always the  cheapest, easiest sale that you'll ever make, because by that point in time, you  no longer have to invest any time, energy or money to attract somebody to  actually give you more money. So the second one is always the easiest, and  that's why we talk about these trip wire offers for $7.95 it, you know, it, maybe it'll make them think twice to separate them from the $7.95 but once you've done  that, the next time you want to ask them for money for $99.99 or $129 or  whatever. That second sale is going to be the cheapest, easiest sale that you'll  ever make, and it's the most and the most effective profit maximizer of all is  speed and optimization, or automation. Let me we're going to talk about that.  What we mean, if you can help your customer achieve their desired end result.  And we're talking taking them from that before phase, life before, to a very  desirable after situation, scenario in a faster, less time and with less work, they'll  buy it every time. So let's do some examples speed and automation upsells,  expedited delivery, assembly or advanced training on how to use the product  done for you services, and that's applicable with software or even consulting  work, installation or migration services, as well as a higher level of customer  support, a more hands on experience, or the opportunity to move your client to  the front of the line. So these are all four of these are examples of how you can  enhance your offer with speed and automation upsells to get them from that  before state to the after state. You want to do it as quickly and as easy as  possible. Three magic words. You want fries with that you want some help. And  the lesson here is it doesn't even have to be your product. You can make a lot of money selling somebody else's product. Step five, architect a return path. Very  interesting concept. Not everybody I go through this funnel is a customer ends  up being a customer, ends up giving you money, ends up using your products or your services. So what you do is you have a very defined path that will lead  them back to some point, some previous point on the conversion funnel path.  Remember, a lot of sales, like we said before, they simply aren't going to occur  on the first visit. That's why you hear marketing people talk about multiple points of touch, for example. In other words, there's kind of a well known school of  thought that says somebody needs to hear about you or hear about your  product seven times before they're going to buy. Well, that may be true, that may not be true. May be less true now than what it was 10 years ago, but the point  is, most sales do not occur on the first visit, especially if that sale involves a lot  of money or a big commitment, and that's why you need to follow up, and that's 

why we spent a fair amount of time optimizing our lead magnet that was back in  step two that you see kind of illustrated on this diagram here, but it's not just an  email process. There's all kinds of things that we can do to help with that return  

path, like exit offers. Maybe you would like if you like Item A, maybe you'd like  item B, for example. You can see some examples of retargeting these people to  reinforce the fact that, well, maybe they do need seven points of touch of  hearing about you or your product. but nothing at the end of the day, nothing's  as effective as automated email follow up to develop that return path that we  talked about for nurturing people who did not pull the trigger, they didn't take that desired action when they got to the bottom of your conversion funnel, nothing's  as effective about nurturing these people along for a future sale as an  automated email follow up system. So if you think back to what we talked about  in one of our earlier modules about email marketing, we had five specific phases in that, didn't we? Indoctrination, engagement, ascension, segmentation, re  engagement. And we talked about the formula here, with conversion for  conversion funnels. In the, I think in the very first lecture of this series, we talked about the leads, the customers, the increasing your margins and increasing the  frequency that your customers buy from you. In other words, maybe they only  buy once a year. What would happen if they bought twice a year? Same thing  twice a year they bought? In other words, they buy twice as much from you, or  they'd buy it more quickly. And you can very quickly see the impact. Now this,  the illustration here is talking about doubling each of these four factors. The  reality is it might be 1.5 or just kind of like a small incremental adjustments that  you'll want to make here, but you can see if you make a small incremental  adjustment on the number of leads that you have coming in. You make a small  adjustment on the number of customers that you're working with. You make an  adjustment or an increase on the margins and on the frequencies of purchases.  You can see on the right hand side the huge impact that this has on your overall  profitability and on your sales revenue. And that's where we get into the five well that will actually went backwards. So you can see the impact that all this has, if  you're paying attention to these return path structure of continually nurturing  these people along and keeping them in that conversion funnel that we talked  about, some of the terminology that we'll use in conversion funnels. Terms that  you need to know is a statement of value, describing the value of how you  transform people from a before state to an after state. We talked about product  splintering, which is really kind of a subset of the overall end product that you  want them to end up with. We discussed speed and automation and the impact  that it has, either as a feature of what you're offering or even as an upsell for an  extra fee, we'll make sure we'll send it overnight, automated email follow up  systems, drip marketing, nurturing on a return path, Marketing Strategy at the  end of your conversion funnel. So some of the metrics that we need to pay  attention to while you're dealing with your conversion funnels, things that we 

measure, that we pay attention to, that we use as markers of success. Metrics  that matter is, how much money do we have to spend to get each client cost per acquisition, average customer value. Another term for that is lifetime customer  value. What? And this really kind of has some interesting implications, because  sometimes you can spend $30 on a marketing campaign. You can spend $30  per customer that you've got to sell a $20 item, but you know that in two months, three months, that customer is going to be coming back to get a new battery for  it, or a new ink cartridge, or whatever the case is, sometimes it's not that initial  purchase that you're after, it's that lifetime customer value over a one year time  time period, earnings per click. So for each person that clicks on there, how  many clicks does it take to make $100 for example. So that brings us to the end  of our lengthy discussion that we had about conversion funnels. Really, there's a lot of detail here that we haven't covered about conversion funnels, but I'm really trusting that if you've paid attention to the things we've talked about in this series of lectures, That you've got a good idea of things that you need to worry about  and think about as you perhaps start putting together your own conversion  funnel for your for your nonprofit, for your ministry, or even for a business that  you might might be working with. So thank you for watching and the best of  success for to you going forward,