CVO Lesson 5 Slides
STEP 4: OFFER A PROFIT MAXIMIZER
Here’s a crazy idea…
Once you have a buyer…
$0.50 / click
You should ask them to buy something else…
$10
$50
We call those types of offers “Profit Maximizers”
WHAT IS A PROFIT MAXIMIZER?
Profit Maximizers can be upsells (offering someone more of what they already bought) a cross-sells (offering them a related product or service) or subscriptions (offering them access to a club, community or association), or any other “backend” offer that increases immediate average customer value.
1. IMMEDIATE UPSELLS
CASE STUDY: Cleveland Equipment
NOT NECESSARILY RELEVANT TO CORE OFFER MUST BE APPEALING TO MARKET
2. CROSS-SELLS
TYPICALLY 10X - 100X THE CORE OFFER PRICE WILL ONLY APPEAL TO YOUR TOP 2% USUALLY SOLD AS ACCESS OR “DONE FOR YOU”
3. SLACK ADJUSTERS
4. BUNDLES AND KITS
5. RECURRING BILLING
6. LINE EXTENSIONS
LESSON: IT DOESN’T HAVE TO BE YOUR PRODUCT!!!
But the most effective type of Profit Maximizer is…
SPEED AND...
...AUTOMATION
If you can help your customers achieve their desired end result…
BEFORE
AFTER
(a.k.a. their “after”…)
…faster…
…and with less work…
…they’ll throw their money at you and thank you along the way.
Examples: Speed And Automation Upsells
• Physical product sellers can offer expedited delivery, assembly or advanced training on how to use the product…
• Information sellers can offer done-for-you services, software and even consulting…
• Software sellers can offer installation or migration services, as well as a higher level of customer support…
• Consultants and service providers can offer a more “hands-on”
experience or the opportunity to move your client to the front of the line…
SPEED AND AUTOMATION UPSELL IDEAS
1. SOFTWARE/APPLICATION 2. DONE FOR YOU SERVICE 3. AUDIT/STRATEGY SESSION 4. TEMPLATES/THEMES 5. SUPPLEMENTS 6. EQUIPMENT/TOOLS
3 MAGIC WORDS “Want some help?”
Action Item
Brainstorm three SPEED & AUTOMATION UPSELLS OFFERS
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
THE FORMULA: L
x
c
x
m
x
f
=
GP
THE GOAL: 2L
x
x c m 2 2
x
f
=
GP 8 4
Here’s a crazy idea…
Once you have a buyer…
$0.50 / click
You should ask them to buy something else…
$10
$50
We call those types of offers “Profit Maximizers”
WHAT IS A PROFIT MAXIMIZER?
Profit Maximizers can be upsells (offering someone more of what they already bought) a cross-sells (offering them a related product or service) or subscriptions (offering them access to a club, community or association), or any other “backend” offer that increases immediate average customer value.
1. IMMEDIATE UPSELLS
CASE STUDY: Cleveland Equipment
NOT NECESSARILY RELEVANT TO CORE OFFER MUST BE APPEALING TO MARKET
2. CROSS-SELLS
TYPICALLY 10X - 100X THE CORE OFFER PRICE WILL ONLY APPEAL TO YOUR TOP 2% USUALLY SOLD AS ACCESS OR “DONE FOR YOU”
3. SLACK ADJUSTERS
4. BUNDLES AND KITS
5. RECURRING BILLING
6. LINE EXTENSIONS
LESSON: IT DOESN’T HAVE TO BE YOUR PRODUCT!!!
But the most effective type of Profit Maximizer is…
SPEED AND...
...AUTOMATION
If you can help your customers achieve their desired end result…
BEFORE
AFTER
(a.k.a. their “after”…)
…faster…
…and with less work…
…they’ll throw their money at you and thank you along the way.
Examples: Speed And Automation Upsells
• Physical product sellers can offer expedited delivery, assembly or advanced training on how to use the product…
• Information sellers can offer done-for-you services, software and even consulting…
• Software sellers can offer installation or migration services, as well as a higher level of customer support…
• Consultants and service providers can offer a more “hands-on”
experience or the opportunity to move your client to the front of the line…
SPEED AND AUTOMATION UPSELL IDEAS
1. SOFTWARE/APPLICATION 2. DONE FOR YOU SERVICE 3. AUDIT/STRATEGY SESSION 4. TEMPLATES/THEMES 5. SUPPLEMENTS 6. EQUIPMENT/TOOLS
3 MAGIC WORDS “Want some help?”
Action Item
Brainstorm three SPEED & AUTOMATION UPSELLS OFFERS
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
THE FORMULA: L
x
c
x
m
x
f
=
GP
THE GOAL: 2L
x
x c m 2 2
x
f
=
GP 8 4
