On episode #499, Eric and Neil list five hacks that will help you make more money off your customers (particularly existing customers). Tune in to hear some great tips that will help to increase your profits!
Time-Stamped Show Notes:
- [00:28] Today’s Topic: 5 Simple Yet Effective Hacks that’ll Get Your Customers to Pay You Double the Money
- [00:35] Hack #1: Increase your prices.
- [01:12] Hack #2: Add upsells and downsells. The easiest way to get more money, is to get your existing buyers to pay you more; it is easier to get people who are already paying you to pay more money.
- [01:34] For example, GoDaddy offers 10-20 upsells or downsells when you are checking out.
- [01:52] What Eric and Neil have found, is that upsells that offer speed and automation tend to have the highest “take rate”.
- [02:22] Hack #3: Retain your customers. Use a program like Ask Nicely, as it will help you automate communication between you and your clients.
- [03:06] Think about how you can retain customers and provide a service for them.
- [03:50] Hack #4: Run re-marketing ads on YouTube.
- [04:15] Do the “opposite” sales pitch; whatever you went with before, market it using the opposite tactic.
- [04:57] Hack #5: Use Drift or a chat box program to keep in touch with customers.
- [05:45] That’s all for today!
- [05:46] Eric and Neil recommend the Problem Solvers podcast, because there is an episode about Burrow, the Dollar Shave Club for couches. To listen go to singlegrain.com/solve.
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Full Transcript of The Episode
Eric Siu: Welcome to another episode of Marketing School. I'm Eric Siu.
Neil Patel: And I'm Neil Patel.
Eric Siu: And today we're gonna talk about five simple, yet effective, hacks that'll get your customers to pay you double the money. So, I'll start this off. Really easy, increase your prices. Okay? So, this is something we're constantly doing. We're doing more and more of this. So, here's an example, right? Let's say we were charging a thousand dollars for marketing services. Well, a couple years ago we were like, "Okay. Well, just cause every other agency out there is charging a thousand dollars, why can't we charge more? Okay. Well, why don't we change our pricing to five thousand dollars, and then afterwards add a setup fee as well?" Right? Add all this other stuff, because when you're growing your costs increase, too, so it's easier ... Prices is one of the biggest levers you can pull to help you get more money.
Neil Patel: Yeah. Hack number two. Add up-sells and down-sells. The easiest way to get more money is to get your existing buyers to pay you more, as Eric mentioned, right? So one is just adjusting your pricing and getting them to pay more. But what we've found is everyone's like, "Oh, I'm gonna keep driving more new customers, and that way I'm gonna grow my business." It's actually easier to get people who are already paying you to pay you more money. That's like when you check out on GoDaddy, they're offering you 10 or 20 up-sells or down-sells. And I'm not saying you should go that crazy, but just doing it simple and saying, "Hey, we're gonna add in one or two up-sells, and maybe a down-sell, upon checkout." And assuming these are valuable to them, people won't have an issue. They can always say no if they don't want them.
And what we've found is, up-sells that offer speed and automation, in other words they help people do whatever they just bought faster and in a more automated way so it causes less work, so it's either one of those two as an up-sell, tend to have the highest take rate. So, if you do that, you usually can get at least 30% extra income from whatever your original purchase price was. So, if you're selling something for a thousand bucks or 10 thousand bucks, assume you can get roughly 30% more on average if you're offering speed and automation.
Eric Siu: Number three is around retention. Neil just talked about it's much easier to grow an account than to have to keep acquiring new customers all the time. So looking at retention, here's something you can do. Let's say you're a SAS product, right? Or even if you're a services-based business like mine, you can use a tool called AskNicely. So, it's asknicely.com, or maybe it's ... Just google AskNicely. So it's an NPS ... It's a net promoter score, or NPS tool, that you can use, and it will basically help you automate that process where you're constantly checking in with customers or even clients that you have to see what your NPS score is, and you can take action on it. If they're promoters you can do something about it, and then try to up-sell them, or you can try to get a testimonial from them, whatever it is exactly.
And then once you automate that process it makes your life a lot easier, but my main point is this. Again, think about how you can retain your customers, how you can do a good job for your customers, right? Because if you have a leaky funnel, it doesn't matter how good you are at customer acquisition if people keep dropping out. If you don't optimize that part, if you're not doing the best job you can possibly do, you're not gonna be able to up-sell. You're not gonna be able to make much more money that you want for the long term. So think about retention, and then use a tool like AskNicely to be more proactive about it, instead of reactive when shit starts to hit the fan.
Neil Patel: Yeah. The fourth tip I have for you is people are gonna go to your checkout page, or your lead page, or whatever, and they're gonna bounce off and not fill in their information or buy. So I want you to put a remarketing pixel on that page. And don't just show them banner ads all over the web, that doesn't work too well, but instead what you want to do is re-market them on YouTube and Facebook. And the remarketing ad should be a video showing them what's it's like to be a customer, or buy the product and go over it, and you want to answer all the objections that they would potentially have that have caused them not to buy the product.
So, what I always tell people who are using this tactic, 'cause it's one of the best forms of ways to get more money from your customers and get them to pay you more, is you go out there and you do the opposite sales pitch. So, for example, if your sales pitch is really emotional on why they should buy and all this kind of stuff, on the checkout page I make it where it's super ... Or, not the checkout page ... On the remarketing video I make it super logical. Because if the emotional pitch didn't cause them to buy, maybe the logical one will, and you're showing them in the video the results, the value, what they can get, what the product looks like or the service looks like if they end up buying it. And once you start doing this, you'll notice that they'll not only buy, but they're much more likely to buy your up-sells and down-sells. And we've found that the people who come from our remarketing video ads are like 15, 16% more likely to buy up-sells and down-sells.
Eric Siu: Yeah. Final thing is, to piggy back on what Neil is saying, so when you think about running remarketing ads, just think about other areas or other touchpoints that you can possibly have, right? So, if you use a chat tool like Drift, for example, you can actually hit those people back when they visit your website. It's like, "Hey, I noticed you were having some difficulty checking out. Is there anything I can help with?" And at the same time, a tool like Drift can also hit them with email, too. So, just think about ... I mean Drift, or like a chatbot's another touchpoint. Your Facebook ad's another touchpoint, too, and then you can also hit them on Messenger if they're on your Messenger list. And then just think about, not just ... We have a remarketing pitch, so not just on Facebook, but YouTube or whatever. Just think about all the channels that your prospect is hanging out on, and just make sure that you're maximizing it and you're creating some kind of work flow that you can follow through on.
So, that's it for today, but before we go, we want to tell you about a podcast on the Entrepreneur Magazine Network called Problem Solvers. So, there's this really cool episode on this company called Burrow, which is the Dollar Shave Club for couches, and how they launch and run a ton of pricing experiments to ultimately win market share. So, if you want to listen to that, just go to singlegrain.com/solve, and we will see you tomorrow.
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