Brian Johnson:
This is something that I want to just hit on and you don’t have to be an expert in this. But I think you should be aware of it and be thinking about it as you’re building your marketing campaigns and running your business and. It’s actually to me life cycle to me is more important than lifetime value comes out of what you do with your life cycle with a customer or prospect.
Because really is only two things you can do with a prospect or a customer. One is you can either increase their life cycle, which means how long they stay paying attention to you or how long they stay in your funnel or whatever it is, or increase how much that they spend within that life cycle. So we really get into like a lot of the stuff I showed you in the tracking and stuff.
I’m gonna show you some more in a second. We really get into understanding how far and how long, where do they deflect from us as a company. Something’s happening. There’s an average that happens along all of our customers and prospects. Then all of a sudden when you find that point of deflection where they start to drop off, that’s where we focus.
Okay? And that’s where we go and look. Let’s go look back a few emails. What did they see? Or what’s happening here? Or let’s go back a week before that, or a month, or whatever it is that your cycle is. And we really spend time focusing on that. We’re constantly looking at how can we increase life cycle?
And while they’re in it, how can we increase what they buy? Split testing, new copy, all that stuff that a lot of you are familiar with. And this is pretty typical of a lot of people that we talk to in the business world. Most people go out and they focus right here. They go out and do a little launch or they’ll put a product up and they’ll buy a little bit of traffic.
And they don’t sell as much as they want and they stop. They didn’t measure, they have no idea what their numbers are, their metrics are. So this is a perfect example. Which I see constantly is you get people that go out, do a launch or put something out there and say, wow, this is great. They killed it. And then they don’t track anything in their lifetime value drops off and then they have to go do it again.
Then they go do it again and they go do it again. And they’re not paying attention to this, which is why you see down here. This is a very common occurrence in the customer behavior mapping. If you’re not tracking it, you won’t know what’s happening, which is typical of most people. They have no idea that’s even happening to them in their company.
Leading to poor decisions about profitability and or your ad campaigns. We actually, and I’m going to show you some spreadsheets, the precious moments, but This time is that we have a negative ROI on the front end. But because we understand our lifetime value and because we know that our processes are working, That we actually have something that in the beginning might be lower from a sales standpoint, but we know the lifetime value is higher.
This is just a quick example, pay attention to this, this is really the biggest thing here. Mhm.