Creating your guarantee (and why you need one)
When it comes to marketing, one of the quickest wins any business can implement to start building trust with new prospects is…
Having an ‘Iron-Clad Guarantee’!
Not just a wishy-washy guarantee with a bunch of “get out” clauses.
A real “everything on the line” guarantee.
That shows beyond the shadow of a doubt – what you stand for and what you expect to deliver.
See, every time I sit down with clients and go through the idea of creating a compelling guarantee.
There’s always the same hesitation.
They’re fearful of getting scammed by somebody who’s just going to take them for a ride and hold them to their guarantee.
Look, in reality, it rarely happens, if ever.
Then I ask them the question, “Well, tell me this, if someone weren’t happy with your product or service, just talk me what you would do to alleviate that situation.”
Then they invariably answer along these lines…
“Well, if someone weren’t happy, I would, I’d work for free until they were happy.”
or “I would give them their money back.”
Quite often, you already guarantee your service, but you’re not articulating it to the marketplace.
That’s why, with my guarantee, I offer a full 90-day, 150% money back guarantee.
See, when I sat down to create my guarantee, I thought, what do my customers really want?
What’s the thing that they worry about when they’re looking to hire a new consulting agency?
I realised they’ve been let down by every other agency they’ve hired in the past.
With big promises and not follow through.
that they’re looking for someone, they can just put their faith in.
I didn’t make it a 30 day because I didn’t want to make the window too short that they were nervous the whole time they were working with me they need to make up their mind to quickly.
I made it 90 days, And the reason was, I knew if I worked with someone for 90 full days. At the end of that 90 days, if I did my job to the level, I expect from myself.
There’s no chance that they wouldn’t be happy.
That’s why, when I put this guarantee together, I thought…
What is it that I do?
What is it that I offer to my customers,
and what is it they’re looking for?
The thing with a guarantee, if it’s meek and mild, it won’t have an impact.
It’s got to be something that scares you a little bit.
I mean, with my guarantee, I’m on the hook 150%.
My fees are $997 a month, which means at the end of the 90 days, potentially … I could lose a whole 90 days of my time, plus have to pay somebody out four and a half grand.
When I put my guarantee to clients, it builds instant trust.
I’ve won a lot of business from my guarantee alone.
The other thing a strong guarantee does is…
It positions you above your competition.
When somebody asks me, “Why should I hire you?”
I can tell them, “Well, I offer this 90-day, 150% money back guarantee.
What is my competition prepared to offer you?
So, it immediately positions me above my competition.
When you put a guarantee out there – you’re giving your prospects the confidence; you stand behind your product or your service.
Because at the end of the day, one of the oldest principles in business is – if you can’t stand behind what you’re selling…
…then you need to question whether you should be selling it.
How you can create a powerful guarantee for your market. And make it so compelling that when they see it. It stops them in their tracks, and they instantly know they’ve found the business they want to engage with.
Understanding your customer Life Time Value (LTV)
Do you know what a new customer is worth?
It’s the price of what they purchased, right?
See, we all know, some customers buy once. While others buy from us many times.
When you run a marketing campaign – You can’t choose which customers buy from you and when…
I’d be great if only those who bought many times became new customers.
But, this isn’t reality….
For this reason – it’s important you know your NEW Customer Lifetime Value (CLV).
Then you’ll know how much you can afford to spend to gain a new customer.
OK, let’s break down the numbers to explain…
Imagine you had 10 new customers. Each sale made was worth 100 dollars.
Below is how often each individual customer bought over the next 12 months (X = sale)
26 sales total
This gives you an average Lifetime Value of 2.6 sales per new customer or revenue value of $260.
Knowing this. Will allow you to track any new sales based on their Average Lifetime Value to your business…
…and, not get caught up in the ‘one-off’ transaction trap.
“Why is this important?”…you ask.
If I use the above example…
The first 5 customers only bought 7 times.
If you were tracking each sale on the transaction value – a ‘one-off’ sale.
You might stop the campaign early and cut your losses…
…leaving you with a negative ROI on your AD spend.
Worst still, you’d miss the next 5 customers – who went on to buy 19 more times.
See, by knowing your customers Average Lifetime Value…
It will help allay any stress if your marketing campaign doesn’t fire from the start.
Now, let’s go even deeper – and uncover the real average lifetime value…
See, on top of the ALV of your new customers – you’ll also need to consider any referrals.
Using the example above, if 2 of your 10 new customers – referred another customer to you…
You’ll need to factor this into your new customer lifetime value.
OK, let me explain…
Often, referred customers will spend more with you than cold customers. Because you’ve already built trust through their referrer.
So let’s look at the same process with 10 new referral customers…
…and we’ll assume each referral makes one extra sale.
36 sales total
That’s an average Lifetime Value of 3.6 sales per referral or a revenue value of $360.
Now, considering your new customer Average Lifetime Value is $260 –
And 2/10 new customers refer 2 people to your business with an average lifetime referral value of $360…
For a total of $720 in referral income from every 10 new customers
This adds an average value of $72 to your 10 new customers…
Bumping your Average Customer Lifetime Value up to $332
TIP: Track referrals and new customers separate. You should have a different strategy for growing referrals as you do for new customers.
So, if you’re making an average of $332 per new customer – over their lifetime.
This means if your cost per acquisition is less than $332 you are making a profit on each sale.
By knowing your customer lifetime value…
You can outspend your competitors to get a new customer.
And, still, make a positive ROI on recurring business…
It works because – Your competition will be tracking their AD spend based on a ‘one-off’ sale basis.
Meaning they need to make their budget work on up front ROI. – Using the above example 100 dollars revenue per sale.
You could assume your competitors budget for getting a new customer has a limit. Most businesses can only spend 20 – 30 percent of revenue to make the sale.
So, if your competitors can only spend $30 to win a customer – imagine if you could spend $90.
You could invest more in your initial offer to wow your prospect’s to win their business. Confident you’ll make your profit back in future transactions.
This strategy is –“giving away part of a profit, you would never have had”
Because, if you didn’t sacrifice the profit up front. You’d never get the back end recurring revenue from that new customer.
Even if you acquired the new customer at an initial break-even or worst case – a small loss.
It’s OK. Because you know you can make up the profit on the back end.
This puts you in the position of being able to create powerful initial offers for your prospects….
…Which your competitors will be unable to match.
…Blowing their marketing out of the water.
Understanding your customers Average Lifetime Value. Will enable you to outbid your competitors for new business. It’ll also help you stay relaxed if your marketing campaigns don’t start well. How have you used your customer ALV to boost your initial offers?
How to Hire Virtual Staff:
Hiring Virtual Staff can be a great way to help manage your marketing strategies, or even to take over your marketing for you.
But it can also have its challenges!
In this blog, I’m going to be talking about how to hire virtual marketers.
As you know, with the constraints you have around running your own small business and learning the new stuff.
Finding the time to learn the tech components and implement them can be challenging.
One of the ways around this is by hiring virtual staff from overseas countries. Who have the technical skills to help you implement your marketing strategies and mostly do it on a budget!
But first, let’s look at why I hire virtual marketers?
It’s not just about hiring affordable virtual staff, because the reality is if you’re paying for really cheap services you’re getting pretty shit results from it.
Or they’re not doing what you want them to do at the level you needed.
And so most people get frustrated with hiring virtual staff because they can’t seem to make it work.
The reason I hire virtual staff isn’t that it’s cheaper labour, because I pay my virtual marketing staff $15 an hour – when the market average is about 6-7 dollars an hour.
Most of my staff are in India and the Philippines, where $15 an hour there is a high wage. The reason that I do this is – because I want the best staff.
And I want the job done right…
…and I want them to be loyal to me and not have to find other work and have my projects pushed aside when something better comes along.
But at $15 an hour, it still works out valuable for me.
The BIG reason I use virtual marketers is – it allows my business to run 24 hours a day effectively.
With the time difference between countries, I can set up tasks at night and go to bed; When I wake up in the morning, the jobs are completed.
For me is the significant advantage of why I look to go overseas and hire staff.
But, there are some risks with hiring virtual help!
A few things you’ll have to work through are:
Firstly, there’s the language barrier, and this becomes challenging when trying to communicate what it is you want your virtual marketer to do.
If you don’t know how to navigate this effectively, (and I’m not saying you need to learn another language)
But, if you don’t know how to communicate what you need to be done to complete the task- then you can find projects take 3-4 times longer.
Therefore it’s not as cost-effective as you first thought!
Another thing is you can lose a little bit of control over your project because you’re not there to oversee everything.
So I try and factor in about 1.5 times the hours it would take somebody I hire locally to achieve the same task.
If I were factoring it would take someone local 2 hours to do a task, I would probably allocate in my budget 3 hours to a virtual marketer.
The next thing is – where do you go to hire virtual marketers?
There’re a lot of options out there and companies who will go and source virtual staff for you – if you want to pay them a fee.
But I think to start with, keep it simple. Start with the two most prominent virtual marketplaces most people use: UpWork and Fiverr.
Here’s what I do…
I hire a bunch of different people on Fiverr and UpWork and give them a trial run on a marketing campaign.
If I like their work and I like their communication, I’ll hire them again, and I’ll start to build the relationship from there.
Eventually, I’ll get their email, and personal details and I’ll start to build a working relationship.
That’s the easiest ways to find virtual marketers.
But hiring virtual staff if only half of it – then you need to manage your virtual team.
How do I manage my virtual staff?
I found the best way to manage virtual staff is first, test before you hire.
I mean, for things like graphic design and article writing, I hire them, give them a brief; and see what they come back with!
Then I ask myself, “Is this good enough that I could train this person to get them up to the quality that I want quickly?”
For SEO, AdWords, or Facebook I’ll pay them to do an audit of my campaigns and give me a report.
Because the thing is…
Very few virtual hires are perfect out the gate, you’ve got to work with them over time.
And big misconception out there is that you can hire one an ALL in ONE virtual marketer.
This doesn’t exist. You do need to have a group of virtual help, and each staff member pertained to a specific area of your marketing side.
It’s very rare, and I haven’t seen it yet, you get somebody who’s excellent at Google AdWords, Facebook, SEO and Web design.
So, try and find people who specialise in each one of those areas and focusing on that one person and work with them and train them.
Ok, so how do I manage my virtual staff?
Some of the tools that I recommend using that will help you manage your staff are:
Hubstaff tracks what the virtual staff are doing and gives them a time sheet where they click on and click off when they’re working on an individual project.
You then get a breakdown of what hours they’ve worked. It’ll track their screen to show you how active they’ve been. Plus it’ll take screenshots every few minutes. So you can jump into your backend and see where they were working on.
As I mentioned before, communication is the key, and what I also do is – I have a weekly meeting with them.
2) Regular meetings
I use, the program called Zoom,
Zoom’s cool because it’s live broadcasting software, where you can record the meeting. What I do is I set the agenda, I go through all the job tasks I want to be done with my virtual marketer, articulate it, and then I’ll save the video to Dropbox, and I send them a copy of the video to my team.
Another tool that’s handy is Snagit.
It’s a screen capture software.
So, let’s say if you need a change made to a website, I can highlight an area, cut it out, then draw arrows and put text on it to give them directions.
Being as transparent as possible with what you want to be done is the fastest way to avoid all frustration that goes with hiring the virtual staff.
And the last one I’d probably recommend you use is LastPass. LastPass is a password protection software, and what this enables you to do it allows you to share your passwords with virtual staff securely.
That’s the breakdown of how I hire & manage my virtual staff. Good luck getting out there and engaging your own virtual team to help you with your marketing implementation.