One Product You is NOT Optimally Profitable
Here is the simplest business build you will ever do. It consists of just 4 products that will move you to POSITIVELY interrupt your targets and start making a profit.
Product One – The Lead Magnet – What could you package up, from your knowledge and experience, and give to your target audience of potential customers that will grab their attention, please them, and, spark their curiosity to a level that helps them take a tiny tiny action step?
Successful suggestions include a work sample, a live demonstration, a powerful recording, a content rich webinar, a white paper, a quick quiz / audit, a 15 minute coaching call or any other small package that can show your depth, credibility and brand to good effect.
Sometimes called a Product4Prospect, the Lead Magnet is given away in exchange for contact details and permission to approach the receiver in the future.
Product Two – The Trip Wire – You can have an audience of 10,000, but, if they don’t buy anything, you are just a loud and unsuccessful busker!
The genius of the Trip Wire product is that it is cheap enough to trigger a no-brainer buying decision and, at the same time, acts as a psychological doorway, taking the individual from feeling like a distant, isolated observer to feeling like a customer, insider and club member.
That is what is so clever about the Trip Wire product.
Again, it must be packed full of value but must NOT provide the complete solution – They need to fill in the gaps in their knowledge with your Product Three.
Successful suggestions for a Trip Wire product include a starter version of your offering, a paid taster session, a paid intake clinic combining audit with delivered content, your book, a recorded audio product or the how-to film that you have made.
Product Three – Your Core Offering – This is the one product that everybody has. The advantage of running a sequence and not starting by pushing your Core Offering, is that you may achieve extra levels of trust and branding and so, will be able to price your Core Offering at a premium. It is important to max the joy of the customer as they receive your service so that their customer experience, CX is exceptional, memorable and becomes a talking point. It is your customer’s outstanding emotions that will boost and grow your company. Good enough is no longer good enough. Wow is now.
Suggestions for helping support an outstanding Core Offering to attain the level of REMARKABLE – Differentiate your offerings into Bronze, Silver and Gold levels that offer economy, normal and luxury versions, add an accompanying user guide and demonstration that are ACTUALLY usable, rustle up celebrity endorsements, design in fun, energy and humour, add sleek design and cool features, work hard to enrich context with multi-channel delivery, build in the possibility of more interaction with the expert you, include full risk reduction, reversal and guarantees, and, incorporate customer feedback to smooth out the bumps in the customer journey, so you know you are delivering something special.
Is that it? No. There’s more…
Product Four – A Second Product. Did you think that getting the customer to buy your main offering once was the end of the line? No. Now we need to get you to PROFIT.
The costs of customer acquisition are normally assigned to the core offering. This limits any possible profit gained from first time customers. This applies to all one-product companies.
We all know that new customers are the most expensive to acquire and that returning customers are the best to have and the cheapest to maintain.
All that cost of identifying, interrupting, warming, closing and delivering has been sunk. Now, with your Second Product, you know who they are and they understand how you operate. The next “box” you deliver will have a much higher margin. And it does not have to be priced at a super premium to achieve this. Sure, a high-end new offering will sort the wheat from the chaff and get those, “I must have the best” types excited. But, a regular priced offering will really boost profits, even when you average out Core and Second Product margins combined.
Suggestions for creating and supporting a Second Product include – The advanced level version of your core, something complementary to the first purchase, “And customers also bought this…”
If a trainer is selling knowledge first time around, they could sell a change programme as the second bite.
If Tony Robbins is offering you mind reprogramming in his first session, his next offering might provide a deep dive into personal wealth and finances.
So, that’s it. The 4 products you need to complete your set, establish a winning commercial sequence and all done whilst delighting your customers and generating above industry average levels of profit.
Call to ACTION – We are running our next Business Growth Bootcamp for Independent Trainers and Coaches this June in the marvelous Capital city of Lisbon, Portugal, Tuesday 26th to Thursday 28th June 2018. To check out the details, simply click on the link.
Good luck and do let me know if you need some help.