Likely the most important online business article you can bookmark and share this year…
This customer value optimization is an online business strategy guide for anyone in any business who hasn’t fully grasped the absolute foundation of marketing online with services, retail sales, information sales, or multilevel marketing on the internet.
Customer value optimization is about you being valuable to your customer and your customer being valuable to you. Business is a give and take for the owner and the customer, and it is done willingly by the customer when the owner optimizes the value to the customer.
This is a roadmap, a mind map, a blueprint, a real business strategy.
It’s for beginners to start the right way and for seasoned pros to review their current business to help you get even better. It’s about having the edge of your competition because you pay attention to what really makes a business grow.
I created this page because you deserve a master resource to guide you in your online advertising and digital marketing. It’s the “right stuff” to make you and keep you growing and keep you “unstuck.”
The 5-Box System
It’s the same system as the Fortune 500 businesses. Companies like Amazon, Starbucks, Overstock.com, L.L. Bean, Walmart, Office Depot, and literally anyone or any business succeeding online today. I learned this from my mentors, people like Tellman Knudson, Eben Pagan, Dustin Mathews, Dave VanHoose to name a few. I modeled the style of presenting is from Kenny Cannon.
People claiming to have invented themselves, for the most part, lie to you.
The 5-Box System is what all the most successful business and online entrepreneurs use for maximum sales, highest return on investment and deliver the highest customer value optimization for incredible business growth.
The bottom line is to grow your business online or off you must do one of the following:
- Get more customers
- Sell more “stuff” to existing customers
- Increase the average amount each customer spends on each transaction
The 5-Box System allows all of this to happen online with low cost, and high return while being completely scalable to any size business.
Learn the Steps to the 5-Boxes Maximizing Customer Value Optimization
The following simple flow chart shows you the 5-Box System.
Download the PDF – Strategy Box Planning
Print this PDF and then post it near you. Someplace close to where you do your work. You will need it often to ensure everything you do fits in the boxes correctly and so you can always visualize how your tactics function in this Big Picture strategy.
With every advertising tactic you learn for Facebook advertising, banner advertising, SEO, Video Marketing, etc, you’ll need to have this reminder of the 5-Box System. If you don’t, then it’s your money and time you lose, not mine.
Important Learning Point. Spending time and money on the latest Facebook ad tactic, or Pinterest advertising, or even the latest keyword tool for some “guaranteed” SEO tactic cannot and will not, in and of itself, generate the profit you desire. The real win for your business is understanding to apply them within the 5-Box System.
Here is the 5-Box System flow diagram…
You must understand these 5-boxes apply to ANY business or offer online. You don’t even need to know your product, service or offer to know this is the process for how you will achieve real customer value optimization and maximize your sales.
Here are the 5-Boxes
- The Lead Magnet
- The Segmentation Sale
- The Core Product
- The Profit Center
- Customer Retention
Almost all businesses leave out at least one of these pillars. The ones who are using all 5 pillars are taking over their respective industries (Amazon, Starbucks, L.L. Bean, Staples, etc.). The pillars are low cost and high return which is why big companies do them!
By implementing the 5 Pillars into your business and applying proven marketing tactics within each box, you will see an instant increase in revenue, lead generation, and of course, PROFIT!
Box 1 – The Lead Magnet
Your lead magnet is the “bribe” to your page visitor. It’s no some junk. It must be something of value, solving a problem and you give it away in exchange for their contact information.
This is your first transaction. Even though it is free, it must be valuable because it is the first exchange leading to box 2 – the segmentation sale (often called a trip-wire).
The lead magnet is best offered on a landing page type known as a squeeze page or opt in page. Its only purpose is to offer the bribe, and collect the lead information.
Here are some great examples of squeeze pages by Digital Marketer and others…
More squeeze page examples…
Your lead magnet exists to get more leads and start them on the path to becoming paying customers.
The more “opt-ins’ you get, the more sales you ultimately achieve.
You can give away services, information, reports, DVDs, interviews, podcasts… quite literally anything providing something of value demonstrating your companies value to the customer.
But some leads take action, and some leads don’t which is why you have Box 2…
Box 2 – The Segmentation Sale
Doing this step right is where you quite literally double your sales over your competitors. In fact, you can triple or quadruple your sales here easily.
Since, for your business, your ultimate goal is to get more paying customers, we can start immediately. So far, you only have a lead. Now let’s segment the leads from the buyers immediately.
The segmentation sale or trip-wire offer is displayed immediately to those who requested your lead magnet.
Ever hear of Columbia House Records?
They were in the back of every magazine on the planet giving away 11 CDs for a dollar.
People thought they were crazy. 11 CDs for a Dollar? How could they ever make money doing that?
By 1996 they controlled 16% of the entire music market and had a membership base of over 16 MILLION people!
They understood that if they offered 1 CD for $15 like everyone else was doing they’d never be able to compete. But by making an “irresistible offer” to first time buyers (11 CDs for $1) they were able to segment the buyers from the “free” prospects.
The price of your segmentation sale should be low – as low as $1 – but of very high value. It must also be a DIRECT compliment to your lead magnet for highest conversion to sales.
The price varies, based on the price of your main sale, but low prices like 1, 5, 7, 9 dollars is best for most markets. Higher price markets may have higher cost trip wires.
This is where your customer value optimization truly begins because you give something of incredible value at very low cost, and you identify the buyers immediately.
This is the single most powerful step you can add to your sales process, DESPITE the fact you don’t profit directly from it.
Yes, it is true, this is not the point in your sales where you are trying to make a living, or pay salaries from selling the segmentation offer. You do something more powerful, you gain trust, and buyers.
By converting the maximum number of leads from your lead magnet to instant buyers, even at an initial loss, will increase your profit margin immediately because you know who to put into the next 3 real profit steps.
(Note: Want to learn the full ins and outs of building the entire strategy, including building and product? You can do so in this Online Business Mastery Course)
Box 3 – The Main Sale
All existing businesses have a main sale or core offer. It’s your main product or service you identify your business with.
The problem is, for most businesses, the core offer has a very low conversion rate to cold prospects, contacts or leads. This is true because you are expecting the consumer to trust you too much on first contact.
Your main sale or core offer will literally explode in sales when you add a lead magnet and segmentation sale offer.
This is so because you now established two levels of trust before seeing the main sale, and this makes your business unstoppable. You can now afford to spend more money to acquire customers… much more than your competitor.
Box 4 – Profit Center
You may be thinking, “Why do you call this the Profit Center?”
It’s simple, once you put this in place, it will make your main offer look like pennies on the dollar. For many businesses, they don’t really profit until this step in the strategy.
This step is all about increasing the average value of transactions with each customer.
In the real world, most businesses… your competition… do not have lead magnets, segmentation sales or profit centers. Their life is difficult trying to always get the sale on the main sale or core offer. For this reason, they struggle endlessly, remain stagnant or die.
The profit center is your first up sell or cross sell.
Keeping it simple, McDonald’s makes around .18 to .20 cents on the initial burger or sandwich sale. The up sell to the meal increases profit by 7 to 8 times from the main offer of the sandwich or burger.
Amazon uses cross sells. When you buy something they show you products other people also bought when making the same main sale purchase and the “Frequently Bought Together” up sell.
Others may make a premium offer like a subscription with recurring billing in a membership site or some other continuity offer that keeps the customer buying month after month after month.
Box 5 – Customer Retention
This is the ultimate customer value optimization comes in.
In the first 4 boxes, you established a level of trust with your customer that is powerful. So at this point, you start increasing the number of transactions each customer makes by having offers to keep them returning.
The customer retention step gets you in contact with your customer regularly, increasing the likelihood they will keep buying from you again and again.
There are many ways to do this. Here are some ideas to consider:
- New lead magnets
- New segmentation sales
- Additional core offers
- Loyalty or frequent buyer programs
- Higher value sales building on existing offers
- Exit offers
- Sales calls
- More content
- Social media
The one thing we don’t consider optional here would be email follow up. Email marketing is truly the core tactic that makes all boxes of the 5-Box system the most powerful they can be.
The single most important action a new business owner can take right now is to get started with the Online Business Strategy Mastery Course/30-15-90 Millionaire Coaching.
This is literally guides you through exactly how to build your 5 Box strategy and automate it. Plus get your email marketing rolling on automatic.
… you can access the Discounted Access by clicking Here.
For the established small and medium business owner, the single best thing you can do to really ignite your business is get started with Premium Success Coaching.
This is one on one business coaching designed specifically for your needs and focusing on getting your 5-Boxes in place and profiting fast.
…you can access the Details of Premium Success Coaching Here.