Get Customers Cheap - Sales Influence Podcast - SIP 602

Business Viability Formula Customer acquisition cost must be lower than lifetime value to ensure business success—this single equation determines whether a company will survive or fail according to Kevin O'Leary from Shark Tank. 8 out of 10 businesses fail within the first 36 months primarily because they spend more on client acquisition than the return on investment they receive from those clients. Customer Economics Calculation Calculate lifetime value by analyzing purchase frequency and average order value over a defined period like 3 years—for example, a customer spending an average of $20,000 over 3 years represents their total lifetime value. Over 90% of people cannot calculate their customer acquisition cost, yet knowing this metric and comparing it to lifetime value is essential for creating an effective marketing strategy. Growth Strategy Reduce customer acquisition cost while increasing lifetime value through product expansion and service bundling to create a winning sales strategy that attracts investors.

Goal-Setting Strategy Impact Women-run companies achieve 99% positive returns over 10 years by setting realistic 90-day sales goals with 95% hit rate and 17% annual growth, while men hit targets only 65% of the time despite 30% growth rate, according to Kevin O'Leary's portfolio analysis across all company sizes. Realistic goal-setting creates 38% drop in employee turnover and frees up to 11% cash flow in women-run companies, as reduced turnover lowers recruitment and training costs while maintaining consistent operations. Employee Motivation Mechanics Achievable targets provide employees "line of sight" to success, creating culture of winning that motivates pursuit, while unrealistic stretch goals cause disenfranchisement and demotivation when salespeople cannot visualize path to achievement. Consistent goal achievement builds stable company culture and customer experience as employees stay longer and genuinely believe in targets, versus high-turnover environments where salespeople leave after missing unrealistic quotas.

Root Motivation Discovery The "magic why question" is crucial for uncovering the root motivation behind actions, surpassing surface reasons like making money. The "five whys technique" used by Toyota involves asking "why" repeatedly until the fifth answer reveals the core issue, aiding in problem-solving. Successful Company Strategies According to Simon Sinek's "Start with Why," successful companies begin with "why they do it" rather than focusing on the what or how. Personal Motivation and Clarity Completing the statement "I just want to be able to..." helps reveal one's true motivation, whether it's business growth, expanding market share, or family support. Understanding your why provides clarity and direction, determining the what and how needed to achieve goals, especially through challenges.

Financial Strategies The two levers in family finance are reducing costs and increasing income; once costs hit a minimum survival level, focus shifts to income growth. Families often overlook the income side of the equation; exploring ways to leverage skill sets or sell items from the garage and closets can generate additional revenue. Income Optimization The Martinez family discovered they were underpaid and, despite fear, successfully transitioned to new jobs with higher pay, validating the strategy of assessing one's market value. Victor Antonio emphasizes assessing personal skills to determine if one is earning as much as they should, possibly requiring a third-party perspective for clarity. Financial Literacy The first step in improving family financial health is to assess the debt situation and its causes; the second step is enhancing financial IQ to instill urgency for change.

Financial Freedom and Options Money as a raw material represents labor and time, and when processed into options, it guarantees more choices in life, such as buying a house cash or on credit, or switching jobs. The more money you have, the more options you have, which is what Financial Freedom is all about, according to Victor Antonio. Money as Medium of Exchange Money is a medium of exchange that represents energy and work stored on paper, such as a check for $1000 representing 40 hours of labor. Happiness and Wealth Money guarantees options, not happiness, which is a limited argument due to permutations like knowing rich unhappy people and poor happy people.

Victor Antonio explains that there are three distinct types of buyers a salesperson will encounter, and each requires a different sales approach. The first type is the unaware customer, who needs to be made aware of a problem they are experiencing. The second type is aware but apathetic, necessitating a shift in the sales conversation to emphasize pain points and urgency to make them care about the issue. Finally, the third type of buyer is aware and cares but is scared of the risk involved, so the salesperson's job is to mitigate anxiety and increase certainty to facilitate the purchase.

Victor Antonio explains that there are three distinct types of buyers a salesperson will encounter, and each requires a different sales approach. The first type is the unaware customer, who needs to be made aware of a problem they are experiencing. The second type is aware but apathetic, necessitating a shift in the sales conversation to emphasize pain points and urgency to make them care about the issue. Finally, the third type of buyer is aware and cares but is scared of the risk involved, so the salesperson's job is to mitigate anxiety and increase certainty to facilitate the purchase.

Customer Loyalty Metrics Customer loyalty can be measured through three key indicators: repurchase intent, increased spend, and word of mouth (net promoter score). The intersection of repurchase intent, increased spend, and word of mouth provides a comprehensive indication of customer loyalty. Effortless Experience A frictionless buying experience is crucial for customer loyalty, as customers prefer an effortless interaction with companies. The book "The Effortless Experience" by Dixon, Tomen, and Delisia offers empirical data and insights on customer loyalty, particularly valuable for small to medium-sized businesses. Business Impact Focusing on creating an effortless experience can lead to improved customer retention, increased sales velocity, and overall business stickiness.

Sales Process Complexity B2B sales processes are inherently chaotic and non-linear due to changing decision makers, reference points, and company types, requiring salespeople to be highly adaptable. Key Sales Skills Effective salespeople must possess high levels of empathy quotient, product quotient, and persuasion quotient to navigate complex sales environments successfully. Salespeople need to multitask between empathy, education, and persuasion in a circular pattern, adapting to buyers' needs and preferences throughout the sales process. Sales Approach The ability to jump between three cues (empathy, education, persuasion) in response to buyer needs is crucial for success in chaotic sales environments. Customer Understanding A high empathy quotient enables salespeople to understand buyer needs, while a strong product quotient allows for effective education about offerings, and a developed persuasion quotient helps in framing offers and gaining commitment.

Positive Framing Positive questions like "What do you like best?" can shift customer focus to favorable aspects of a product or service, increasing the likelihood of positive feedback. Using loaded questions strategically can guide customers to consider the benefits and strengths of a product, potentially leading to more favorable responses. Customer Engagement Open-ended questions encourage customers to provide detailed, qualitative feedback, offering deeper insights into their preferences and experiences. Implementing follow-up questions helps narrow down responses to the most significant positive aspects, providing more targeted and actionable feedback. Feedback Utilization Customer testimonials derived from positive feedback can be repurposed into effective sales pitches, highlighting real-world benefits and user satisfaction to potential clients.