President and Founder of Larry Jacob Internet Marketing, Diaz interviews Oli as a guest, part two.
But really you should be staggering. NPS score out, within the first 30 days, then 90 days I've 180 days and beyond. I'm actually measuring what the changes are so that you can be proactive in knowing whether or not they're ever detract a passive or, you know, they're a promoter and so that you can see that happiness, from, from what's actually going on. And then you can start segmenting people up and then kicking actions off accordingly. Even generating referrals or incentives or to share offers to where the way testimonials can be generated off of that and things. Sure. Yeah. Yeah, it works fantastically so the fourth thing is segmenting, your clients and your, your customers in humanity ship. See, the thing is, is that, what I mean by that and people get confused by what we mean by that.
Really what it means is, is that if we understand what got them that or why, what caused them to be part of our world as part of the community that we've, where we're creating, then we're able to deliver the right kind of value at the right time to them to make the most impact. And that's really important because you can create still a very customized experience to the people that within your membership site based upon that profile and going through a process of actually continually profiling your membership because of course people's needs, challenges, frustrations, they change and that allows you to be able to then align that content that you're producing towards what is going to serve them the most. And ultimately that's going to increase the stickability and it's going to mean that you're going to extend the lifetime value of, obviously your, of your members as well. So you're thinking of them based on where they are in their journey and then how that maps to what you're producing for them.
It is exactly because see, the truth is, is that, and this leads very well onto the fifth, active idea, which is your service offering to that needs to evolve based upon that the phases of your and the phases that your Manders will naturally go through when they get the benefit from your services. What I mean by that is if you join my membership today, you are joining for a reason now as a result of being in my world and me helping you, you're now naturally going to hopefully grow your business or develop yourself or whatever the purposes of your membership is. And so the phase that I'm in here, phase one will now gravitate towards the next phase or the next level, which is sort of phase two. But the thing is is that I can present what person, what sort of person this is. Now that they consume this content, a passed that course or whatever it may be. And so I can begin to change, my content appropriately so that I can provide the most value to them. Cause the thing is p [inaudible], right? They buy value.
Yeah. No, no. And this is interesting, I wrote an article earlier today is if you're, if your membership site is doing a really good job, you can very easily put your membership out of business because I got them very quickly through and now they, they've achieved their goal and they're done and they're super happy with you, but you don't have a customer anymore. So you know by phasing them like you, you've addressed that.
Yeah. And once, once also critical to understand is that what people want is that they, they want to buy solutions to problems and they want to also buy that half to achieve their goals. Right. I just say that again because it's really, really important. They buy solutions, not problems, but that's all. So buying the path to achieve that goal, meaning if you're the experts, then you are already defining what that path is going to be and what challenges they were ultimately going to face along that journey of being with you. And that means that if you do this phasing in the right way, you can deliver value in exactly the right time to the right phase of where they are and then you will provide them the most and the best experience and be able to serve them on as a, with what they need.
Because it doesn't really matter how much they liked he was a person. Okay. Or how much they liked the business. Or even sometimes the, your, the people, they, you want that problem served this phase where they are, you know, if you run in a business coating side, of course, you know, not everybody's business is the same size. And equally, if you join the business coaching community and you're only doing six figures, hopefully by being in it for six months or a year, you would have increased your revenue. So therefore now you've got different problems, you've got different challenges. Now you've got to think about staff. And so if your membership doesn't talk, so those problems, then you're sensitive. You're going to be losing members, right? And you're anticipating, but I mean, you know what their next problem will be because you know, you've been there, done that and it's interesting you sold them on an initial solution based on that value, but they don't even know the value they need to get next. And if you can lay the tracks, you know, ahead of the train, you know you've got a winner. Right?
Yeah. And that's one of the problems when people first start out stricturing that site Dan membership now offering that whatever it is that you know, they're looking to do online. Cause the, the issue is, is that they, they never really, you know, most people look at this sort of value ladder rule. Most of, you know, you can have a higher tier members, you've got a lower tier membership than a higher tier membership isn't that high as your membership. And this is often found in information marketing type businesses where you've kind of got this foundation and then, you know, you ascend to a high level ultimately into coaching, then ultimately into a mastermind and ultimately into some kind of one to one consultation. Well, that's not uncommon, but the problem is, is that people who join here, you know, you, if you just keep delivering the same value to them and don't make it clear to them that you actually want to raise them up, you can actually tell people when they first come to you, you're not right for this, but you'll know this is the right fit for you.
And so once you're inside it, then you can begin to say, hey, based upon what you've completed, what you've consumed, now we believe that you're in this phase of business and so this is how we're going to serve you. And actually by asking for more money, that point makes more sense to that because I, well now these challenges are more complicated, that more involved, there's more to it. And so I need to be able to know about La in order to scale my business. And that's the reason why you see a lot of people jump from person to person as a person's person and just want the first rule.
The first one, did he meet their needs? Right, exactly. Oh, they've outgrown that fence. And of course, you know, that's the thing, like you just said that you know, you are a business coach and you're offering coaching for example. You know, some people will say, Oh, you know, I heard this a few times. Like they subscribe to the idea of having a coach of having information, having a tool. But then what happens is, is that they will say, yeah, I got value from it, but I kind of outgrew then and I needed somebody else. Well that was just because it was never considered by the person in the first place, right? Right. Of what path that they ultimately were going to go on if they took action on their information. So it's a consideration. Now, the sixth and final, growth activator is actually a signing accountability, full retention, retention, retention, retention is absolutely critical in any kind of recurring revenue, business membership, business.
And so what we try and do is once we've established the right metrics like we were talking about before, and, and you know, you know, your growth rate, you know, your retention levels, you want to begin to scale up, right? And so when you begin to scale up, there are so many other leavers that you've got to pull to be able to do that. And what you don't want to do is let go of probably the most important thing go over here, which is retention. And so, to make sure that that's kept in order assigning some of the day, you know, whether it be a virtual person or somebody in your office or somebody that's going to come in and solely be responsible for looking at these metrics, looking at these indicators, looking at these reports and knowing proactively what to do about it. And also reactively as well. So purely focused on your job here and you will be, your performance targets will be based around retention while then you go and focus on growing and building funnels, driving traffic and all the other things that come with stuff it's absolutely paramount that you do that. So you [inaudible]
and it's very common to come up. You've worked really hard to get these customers in initially. That's got to be your mindset, otherwise you don't have a business. But, but at some point you really need to flip it because keeping those people becomes more important than acquiring net new clients.
Oh my, certainly we know, everybody knows that, you know, it's not only just easier to sell to existing customers, you know, but the key metric in all of this stuff is lifetime customer value and you're always playing the game of figuring out ways to extend that, whether that be through ascension. So a good stick strategies do actually to get more people to stick around. Do you actually ascend them, which is, which, which works very well, but also, you know, how you can maximize, the value of those customers because it is expensive to acquire members or there's no doubt, there's no doubt about that. So having these six, grows activators in mind really stands you in, on solid ground really to begin building a very valuable and sustainable [inaudible].
That's right. I mean, and when you're starting off, I mean, let's say you've got zero customers and now you got your first 10, your first 20, you know, when you're a 20,000, you know, 20,000 to even two, 5,000, the farm ability of that audience is even more valuable than an additional 500 people you can add to it because these people are now your, your tribe, your community of your loyal fan base. And again, it's a different business model altogether from acquiring new clients versus how do I retain them and keep them very engaged and buying?
No, certainly, it makes so much more sense, and you know, one of the dangers of, of most recurring revenue businesses when people are looking at this, you know, that that MRR metrics and their attrition rate and that growth rate, and their attrition rate versus their growth rate like we spoke, right? And profit activator number one and [inaudible] number one is as your membership business grows, you will not truly begin to inherit more costs. Now, what I mean by that is that although building a membership site is very profitable, so it's extremely, has very high margins, there is obviously a cost to getting it set up, and the technical stuff. But there is other stuff to consider. You know, as you start to evolve your curriculum does it cost to that there is a cost to the right kind of hosting solutions to make things more stable than from a support perspective.
There's a lot more support required. You might bring in additional people to film additional content. You might pay other people to do that as well. And it introduces more costs because you've got to feed it. But here's the thing, as your business grows, as it grows, your cost base rises. So then what happens is, is that if you are not on top of some of these growth activators that we spoke about, you can slide back there the way, but your cost base stays the same. And so don't you create a situation where now you've up, but equally you haven't looked at how you have a, have a lot of the indicators. That's how you actually, you're not going, growing as quickly as you think you are. And then suddenly there's a negative impact. [inaudible] no, no. Right. You've got fixed costs that are exceeding what you're able to bring in and know you took your business from profitable to losing and sometimes very fast.
Certainly. Yeah, he's not too much. And, all these growth activators are the, are very, you know, fundamental to, to, to making all of this work and in a lot of ways are the basic things that a lot of people also look to as an investor to consider before somebody may or choir actually is an exit. [inaudible] somebody coming into a choir, you, or any kind of serious buyer, to, to do, you know, to tell you how your business and take you off the Amazon. I'm buying ads and before you acquire anything, they want to know these numbers and they want to know that you've got a property phased life cycle for your membership phase. They want to know that, you know, your growth rate, your, attrition rate they want to know what indicators there are set at what that are, SAS at what systems are set up within your business that are predictable and, baked into everything that you do to make it a viable opportunity for you, for them to come in, invest in your business as well. So, whether you're trying to raise money or you're trying to get, you know, there's an exit here at some point, they're all very relevant.
Great. Great. Well, Oli, thank you so much. This has been very educational based on the way I'm seeing this, we went way overboard. I'm going to do is I'm gonna cut this up into two different episodes cause there's, there's plenty to chew on here Hey Oli. So if anybody wants to reach you, and you know, maybe make use of your services, how would they do that?
Sure. So, really, the very best place to go to is Oliver billson.com, two hours in Billson Oliver billson.com above your name.
Yeah. Yeah. And on the site that we've got some, some free ungated content on our blog, we post twice a week and we don't have any opting, you can go and check them out. And if you want to go a little bit deeper, we've got a free offer on that site that, for a video series that we created, some time ago that people tell us that they enjoy so do you want to go a bit deeper then go ahead and do that as well. But the first, the best place to go to, isn't it, the website. And, we, we look forward to connecting with it.
Great. Great. Well, Oli, thank you very much. Really appreciate your time and I'm sure people are gonna enjoy watching this. [inaudible] thanks for having me. I appreciate it. Thanks.