GROWTH HACKS THE 12 STRATEGIES FOR DOUBLING YOUR PROFITS …Hacks... · Maybe you will, but if you run some math on that, you will find you can lose 10%, 20% of your customers with

GROWTH HACKS THE 12 STRATEGIES FOR DOUBLING

YOUR PROFITS RIGHT NOW

Module 4

#10 – Pricing #11 - More Touches

#12 - List Segmentation

With Dan Kennedy and Dave Dee

www.gkic.com

© 2015 Glazer-Kennedy Insider’s Circle, LLC. All Rights Reserved.

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GROWTH HACKS THE 12 STRATEGIES FOR DOUBLING YOUR PROFITS RIGHT NOW

© 2015 Glazer-Kennedy Insider’s Circle, LLC. All Rights Reserved. Page 3

CONTENTS

Strategies for Doubling Your Profits: Module #4 .............................................................................................4

Pricing .........................................................................................................................................................4

Lowest Price ............................................................................................................................................5

Raising Price ............................................................................................................................................9

List Segmentation .....................................................................................................................................12

Collecting Data ......................................................................................................................................13

Effective Examples ................................................................................................................................16

Touch Me Baby .........................................................................................................................................19

Sending Newsletters .............................................................................................................................22



STRATEGIES FOR DOUBLING YOUR PROFITS: MODULE #4

Dave Dee: Welcome to session #4 and the final session of Growth Hacks: The

12 Strategies for Doubling Your Profits Right Now.

In this session we'll be covering the hows and whys of raising your prices or

fees, how precise targeting or list segmentation could give you exponential

growth and the strategy I like to call the “Touch Me Baby” strategy.

PRICING Okay, Dan, let's talk about raising prices because this is a nice Growth Hack

and it's really not that difficult to do.

Dan Kennedy: It's the easiest one.

Dave: Right. It's pretty simple.

Dan: Again, it by itself you're probably not going to double… you're certainly not

going to double revenue. You may double profits though.

Dave: Right, which is the promise of this. By the way, if you use all of these...

Dan: Yeah. First of all, most businesses are

underpriced at least somewhere. They may not be

overall underpriced, but they're at least underpriced

on something or some things to somebody.

The main reason for that is that they are either just

skittish and squeamish and timid and fearful… Zig said timid salesmen have

skinny kids… or they pay too much attention to industry norms; formulaic

pricing – “It costs me X multiplied by 2.3, add $1, that's the price it should sell

for;” their competition; they're not really effective at selling in a vacuum.

Don't settle for

continually being

poorly compensated.



They may fear it because they have bad marketing and sales skills… and the

answer to that by the way is “Go fix your marketing and your sales skills.”

Don't settle for continually being poorly compensated.

They have bad deliverables. The answer to that, “Fix your deliverables.” “Well, I

don't dare charge more because the place isn't clean and my people are nasty.”

Well, fix that.

Or they're not doing the math right. They fear, “If I

raise my price, I'm going to lose some customers.”

Maybe you will, but if you run some math on that,

you will find you can lose 10%, 20% of your

customers with a 30% price increase and look at

what happens to you.

Going and raising the price… particularly if you can create an environment in

which you can test it… is the fastest and easiest path to increasing profits in a

business.

There's a theory that a lot of people have that, “I’ll sell more units at a lower

price and I'll sell less units at a higher price.” Generally, broadly, yes, it's true,

but narrowly, it often isn't.

You'll sell more cars at $50,000 than at $200,000, but 50 to 59, 50 to 62,

probably not. Certainly not enough to sacrifice that extra $12,000.

LOWEST PRICE Dave: Yeah, absolutely. Another myth that people have, which is “People are

only shopping for the lowest price.” We hear this a lot. “My customers, my

clients, my patients want the lowest price.”

I was just talking to my wife, who's getting into real estate, trying to be a

real estate agent, and actually selling some homes and doing that, but she's

Raising the price is

the fastest and

easiest path to

increasing profits in

a business.



lamenting the fact that real estate agents in our area are cutting

commissions.

They're cutting commissions, and she doesn't want to cut commissions. She's

like “Everybody is going to go with the person that's doing it for 1%.” So talk

to Karen for me!

Dan: First of all, it's only a max. of 15% of people who automatically, constantly,

and consistently buy by price.

The overwhelming majority of them do so because

they have no alternative. Single mom, deadbeat dad,

three kids, and a bad job. She's buying whatever

soup's on sale because she has no choice. If she has

to sell her house four steps ahead of foreclosure,

she's listing with whoever will charge her the least to do it. She's under so much

economic duress, all of her decisions are driven by price.

It's less than 15% of the population or of any population you want to put

together… Chinese restaurant owners in Sheboygan, it's 15% of them who are

under that kind of pressure and have to behave in that way.

The rest of the people behave situationally and, when they buy the cheapest of

whatever is being offered to them, they do so in the absence of persuasive

information about comparative superiority.

We were talking about this jacket earlier, which I should never have bought. By

the way, any time I try and use a coupon, Armageddon ensues. You don't even

want to be in the same state with me when I try and use a coupon, but I should

never ever buy anything on sale either.

If you walk into a store and there's two jackets and they appear to be identical

to you and you feel them and they feel identical and you try them on and they

Only a max. of 15%

of people constantly

and consistently buy

by price.



feel identical when you put them on and one's $199 and one's $499, unless

you're just goofy, you're buying the $199.

Somebody has to say to you, “Let me explain the difference in the way these

things are made.”

Somebody has to say, in her case, “You can find any number of real estate agents

who will discount commissions, and some will discount more than others. You

will find most won't charge you a listing fee, only a rebate out of the

commission. However, the way I do business is X and here's why that's actually

the better bargain.”

When people say… I used to get a lot if I did hot seats at Joe's for carpet

cleaners… “Everybody in my town buys on price,” If I come to visit, we’d better

only find Walmart and dollar stores. If there is any other retail store in your

town, I'm kicking your butt. We’d better only see Kias. If there's any other car on

the road, parked in a driveway, anywhere in your city, I'm taking a baseball bat

and beating your head to a pulp because you're full of bolognee.

When we got to the grocery store, there had better only be the house brand.

There had better be no Progresso soups in the aisle. There had better be the

house brand of soup, private label. That's it, not even Campbell's.

Because otherwise people are standing there and they are making a choice to

pay a higher price than is right in front of them for a can of soup and there isn't

even a salesperson there explaining it to them. It's all nonsense. It's just not true.

It's not how people behave except in the absence of persuasive information

about comparative superiority.

Dave: Sure, so if you're viewed as a commodity… which the whole GKIC

marketing is all about making sure that you're not viewed as a commodity,

that you're viewed as an authority, celebrity and expert and all that kind of

stuff… it's just crazy. On the Brass Balls seminar, you talk a lot about price

and fee. Talk a little bit about that.



Dan: Really the same thing applies to terms… to how you do business. Again, in

real estate, we have real estate agents charging a listing fee.

Dave: Sure, which they should.

Dan: Of course they should, and they're right up against… The average person

now interviews five before they list a house, so they trot them in and out over

five evenings or whatever.

So the person following my recommendation is

probably going to be the only one sitting there

saying, “It's $997 to sign up.” Everybody else is

definitely not saying that and they're immediately,

“I'll cut my commission.”

They're doing it. So how does this person even

survive?

First of all, they have to be able to maintain a straight face… and hold their

testicles in place if they're a male… while they quote it. That's really what we

talked about a lot in that classic seminar:

• You have to know your worth.

• You have to have deal flow.

• You have to know there's another bus coming.

• You have to be able to make a persuasive argument of comparative

superiority.

You can freely acknowledge, I always have… When I was $8,000, $10,000 to

write a campaign for somebody there were people at $500. Now that I'm at

$50,000 to $200,000, there's a lot of lower priced copywriters.

If you really don't have the ability to pay, the size and scope of your opportunity

is inappropriate for me, I would be happy to recommend some. They're not me.

You have to be able

to make a persuasive

argument of

comparative

superiority.



They may be serviceable though. They're competent. They're reliable. Let me

give you some names. More often than not, by the way, that turns...

Dave: Makes them want you even more.

Dan: Of course. So price, fee, compensation… whatever compensation is in your

business… is more dictated by you than by competition.

First of all, most competitors are terrible. They're lousy at advertising. They're

lousy at marketing. They're lousy at sales, and they're more scared of price than

you probably will ever be.

There's a lot of them, but they're all horrible. You should be able to kick their

butts.

Secondly, the person really doesn't know. They can't judge comparative

superiority, so you get to control that criteria. If you control the criteria

properly, higher price makes sense and you win with 85% of the consumers.

RAISING PRICE Dave: Let's get down to the nitty-gritty details. How does somebody go about

raising prices? Is there a formula, and the follow-up question to that one is,

which we get all the time, how do I deal with my current customers, clients,

or patients if I'm raising the price?

Dan: There's two big approaches to raising price. One is the cowardly lion

approach, which is “I'm going to do it, but I'm worried about it.” So you create

tiers and choices and upgrade opportunities so people choose the higher price.

If a significant majority of them are choosing the higher price, now you should

be emboldened to throw away the low one, take the one you created, make it the

base, create a new premium tier. That's the cowardly approach, but at least

you're in motion.

The other approach is you just do it. You just raise your prices. End of story.



As to the existent customers and clients, there may be reasons to grandfather

some or all. Even I have a few grandfathered clients who would not under any

circumstances pay my current fees. They've been with me for a very long time

and they have other value to me. They're grandfathered.

You can count them on one hand and have a finger left over to do tea. You may

grandfather some. You may grandfather all.

You can take the “good news, bad news” story approach to them, which is “Bad

news, we're raising these prices; good news, we're going to raise them on all the

new ones and we're not going to raise them on you for six months, so buy as

much stuff as you can during the next six months.”

“Good news, when we do raise them, we're adding these perks and we now can...

We don't do an apples to apples price range; we do an apples to oranges price

range.”

The third thing you can do is you can ascend and eliminate, so you force ascend

them and then some people refuse.

Dave: Again, to give a personal example, my

doctor decided that he wanted a concierge

practice and it was real simple. “I'm raising my

prices. Here's what it's going to be; you're going to

pay $2,000 a year but I'm only keeping X number

of you and that's it.”

Dan: That's ascend and sacrifice. Believe me, when

there were unlimited seats and there's now only… what did he tell you, 200?

Dave: Yep. 200.

Dan: He probably went to VIP.

We don't do an

apples to apples

price range; we do

an apples to oranges

price range.



Dave: He did and then dropped them and is just doing it on his own. He got

the model.

Dan: So when it was unlimited and now there's only 200… people have been in

that office and seen 30 there at a time. They can figure this out. 200 will ascend.

It's math by the way.

VIP says, “How many have you got that've been in three or more times this

year?”

“Well, we know what we can ascend. Here's what that does to you

mathematically and financially.”

The guy says “Oh, I can take care of 200 patients and make the same amount of

money I was making taking care of 3,000 people and I can have half the staff and

I can take Fridays off and I can… Gee, what’s not to like about this picture?”

Dave: Yeah, and you get money up front. He's getting $2,000 to be part of his

practice. The reason I brought that up is you've got to be thinking about how

you ... I can see a doctor saying, “Well, I can't do that.”

Dan: “I can't do it. My patients would never do it. Won't work in my community.

It won't work for our...” It's all in the mind.

Dave: The other thing you said that's important though, when raising prices,

you mentioned you've got to explain the benefits of it as well. Because if he

didn't explain the benefits of it to me, if he just said I'm just raising my

prices... “There's 200 people so you're never going to have to wait in the

waiting room ever. If your appointment's at 9:00, you're going to be in a

9:00. If something's wrong with you, you can come in that same day.”

Dan: That helps. It's not necessarily essential, but it's preferable. It's better. I, on

occasion, for a couple things, have raised prices and taken stuff away, so it's just

like supply and demand.



Dave: What if you don't have the supply? There is a positioning element to

this as well.

Dan: You can do the positioning without the supply. That requires bigger brass

balls. But it’s better to have the supply.

If your marketing act is together and you have enough flow… which is fixable in

every business if you don't have it... it's easier to have brass balls.

Also, if you fully monetize… so if you're using all this, every customer's more

valuable to you… it's easier to have brass balls because you don't need as many

new ones all the time.

So if you lose 10%, and you've got to maintain 1,000 customers at your place in

order to make a living and your price strategy is going to lose 100, you think “Oh

my God. How hard is it to get 100? How long is it going to take me to get 100?

How expensive is it going to be to replace the 100?”

If you need 100, and you're going to lose 10, it's the same ratio; but you say to

yourself, “Well, I can get 10. I can replace 10.”

LIST SEGMENTATION Dave: Let's move on to the next Growth Hack,

which is marketing more aggressively to our best

buyers, which of course takes into account list

segmentation. Most business owners, as you know,

treat all of their customers, all of their clients, all

of their patients, exactly the same way. Why is this

such a huge area?

Dan: Well, it's pretty stupid because they're not the same. They're not the same

in terms of differential value to you.

If you have any history at all, if you've been in business for any period of time at

all and you've never calculated it, you could certainly go calculate it and you can

Usually a small

number of your

customers are worth

more per person

than a large number.



take every customer record and see what they've been worth and you're going

to profoundly see that usually a small number are worth more per person than a

large number.

• They're not the same to you in value.

• They're not the same to you behaviorally.

• They're usually not the same statistically, demographically.

So treating them all the same is foolish. It makes no sense. Further, treating

them all the same leaves an enormous amount of money on the table because it

forces you to drive everything to the lowest, to build it for the lowest level.

• Every story has to be acceptable to the lowest caliber of customer you

have.

• Every promotion is built for the lowest caliber of customer you have.

• Every price is built for the lowest caliber of customer you have.

You're wasting all the value of those that are higher in caliber up the spending

pyramid, the ability to buy, the willingness to buy. You're leaving all that behind.

Even with no deliberate intent, you will attract some customers who have

higher interests, higher willingness to buy.

Willingness may mean frequency; it may mean size, whatever, and higher ability

to buy. Even if you were thoughtless about it, it will happen to you

automatically.

If you don't differentially build offers for them and opportunities for them, they

can only take advantage of what you put in front of them. Often, you leave them

so restless and underserved, they go somewhere else, “I'm in the wrong room.”

COLLECTING DATA Dave: In order to segment my list, I need to know what data to collect. What

are some of the different things I should be collecting? How do I figure that

out for my own business?



Dan: Let me give you the short answer instead of the long answer. If you go to

the doctor tomorrow for a routine physical and the doctor comes back to you

and says you may have XYZ and we need to run a bunch of tests.

So we're going to check you into the hospital for two days and we're going stick

a tube everywhere, down your throat and in your ear and we're going to take

some blood. Most people will say “Yes.” Big mistake.

The question they have to ask… and make sure they get an answer to… is what

are the different things the tests could show? What are the possible outcomes of

the test and, for each of the negative outcomes, what are the possible

treatments? If you're not willing to do any of the treatments, why go through the

tests?

By the way, your answer might be different at your

age than my age and it might be different at my age

than somebody 20 years older than I. The same thing

is true with data. The way you figure out what data

you want is by figuring out what data you're willing

to use.

For example, if that restaurant would determine

through their customer base that there were 16

different customer profiles and, if they created 16 different content tracks,

message tracks, and offer tracks for those 16 different kinds of customers, they

could increase prices by 20% and they could increase frequency by 20%, would

they be willing to run 16 separate marketing tracks? If the answer is no, forget

it, don't get the data.

If you're not going to run a really sophisticated birthday campaign, don't get the

data. But if you are, do everything you can to get the data. Ask 26 times. Pay

everybody who has the opportunity to answer a question $10 to get it.

The way you figure

out what data you

want is by figuring

out what data you're

willing to use.



You work backwards from “If I had this data, how would I use it? Am I willing to

do that?” If I'm not willing to do it, no point in getting it.

A lot of businesses have a bunch of statistical data that they never make any use

of and, when pushed, make it clear they are unwilling to use it.

Why are you even collecting it? “Well, my accountant runs that report every

month.” Well, if you aren't going to use it, have your accountant do something

else. Let's get some data we're going to use.

The longer answer is, again, you look at the back end of your business, you look

at the front end of your business. You look at… so let's take behavioral data.

If you look at behavioral data, many businesses would have some people who

only come in on special occasions. Five years and the only time they've been in

here is their birthday and their wedding anniversary.

We have some people who only come in during the winter months… it probably

means they live someplace else during the summer if we don't know that.

There's some people who… and I could keep doing this.

That's behavioral data that is available in most businesses... they’ve got it, they

may never have backed it out and looked at it.

Again, if you're not willing now to build a “Special Occasion” campaign for these

people and create higher priced packages for special occasions and get a limo to

drive them to and from the place, don't get the data.

If you would be willing to do that, see if that data exists. If it does, it's really

valuable data.

Dave: At GKIC, one of the things that we do, because we use Infusionsoft…

and there's other email programs that you can use, so you can segment lists,

not only by buyers. I think people are thinking, “Well, I’m going to segment

my buyers or my prospects...



Dan: Or leads if you have leads.

Dave: Yeah, by leads, but you can also do it more sophisticated by clicks. So if

the person clicks on this certain thing, that indicates that they're interested

in this and then they'll go into a completely different list, a completely

different track.

Again, it's very, very powerful and again, it's done automatically, so there's

really no reason for not doing that.

One of the things that we're going to do this year for Info-Summit is we have

a high rollers list, so we have people who came to previous Info-Summits,

who spent X amount of dollars, which is way more than the norm.

We're going to treat these people like high rollers, like you would do at a

casino. We want them in the thing. The question at GKIC is what if the other

members find out? I don't care if the other members...

Dan: Spend more.

Dave: Spend more. This guy's a high roller.

Dan: You can get on the list, no problem. It's the answer at the casino. How do I

get a comp? You're not gambling enough. You're making minimum bets. You've

got to bet at least a couple of hundred bucks a hand and you got to have 10

grand in play and then I can go get you some comps, Dave. “Okay, I get it.”

EFFECTIVE EXAMPLES Dave: Right. It's pretty straightforward. Can you give us some examples of

businesses that have used list segmentation effectively?

Dan: Yeah, the one everybody sees, whether they know it or not. Credit card

companies, very sophisticated. Credit card companies are using all sorts of list

segmentation to put a credit card offer in front of you as a new person.



You and I may live in the same community next door to each other, we're going

to get two different offers based on all the behavioral data.

Charities, well-run charities, segment a lot. On the front end, let's take

something like Happy Trails Animal Rescue. If they go rent lists, they're going to

rent animal charity lists, but there's dog lists, there's horse lists, there's cat lists,

there's whatever.

They can't really use the dogs and the cats because they do farm animals. The

horse list, they’d better make sure that the picture on the front is of a horse, not

of a cow or a pig.

If they're going to go to farm bureau donors or subscribers, let's show them the

pigs. Let's vary what we put in front of people.

Here's something daring to talk about. I do some pro-bono work for a local food

bank, and a lot of the food banks get pre-done marketing from an agency that

does lots and lots and lots of food banks.

I started having this conversation with them a year and a half ago. They get a

pre-done newsletter by somebody like Shaun Buck's company but is only doing

food banks and two-thirds of it is standardized and one-third of it is drop-in.

The cover of this newsletter every month… and this is risky to talk about, but it's

profoundly important… has little black kids and little Mexican kids, and little

Asian kids on it, and black families and Mexican families and Asian families.

This makes perfect sense by the way, except for the fact, who are the donors? I

said, “Who are the donors?” Well, it's grandma… rich grandma from the suburbs.

Well, it would be a good idea once in a while at least to show her a white family

with kids that look like her grandkids who are going hungry instead of people

who look like she only sees them if she watches reruns of the Cosby Show.



She lives out here in Shaker Heights. She doesn't go to downtown Cleveland. I'm

sorry, but she doesn't. It's just the way things are.

If you want to amp this up, show grandma her grandkids. That's what you want

to do.

You can imagine the reaction because they're all liberals and they're all sensitive

and so one person at this meeting is thoroughly PO'd at me and two others are

shell-shocked.

It takes like a year before they run this experiment. Guess what?

Dave: What happened, Dan?

Dan: 50% bump in response and a 25% increase in

size of donation. You may not like it, but... so smart

charities do it, though.

Casinos, absolutely. List segment up the yin-yang.

The best segmentation is of course customized offers

for customized segments of lists or even per

customer.

Dave: Per customer?

Dan: Yeah. If your customer value's high enough and your transaction value's

high enough, why wouldn't you customize an offer just for Bob? Which takes

your high roller one more level up.

You may have one super high roller who's a big NASCAR fan. Well, what could

we do for him that is NASCAR? That's his thing.

Internally, you can definitely do it.

This is about fully

monetizing your

assets, your

customers, by who

they are.



Externally, there's all sorts of data you can back out of your data and back into...

Guys like Richard Seppala, the ROI Guy, they're really good at backing it out of

your data and backing it into available data.

Craig Simpson's very good at finding it in mailing lists and so forth.

This is about fully monetizing your assets, your customers by who they are, how

they behave, what their interests are, etc., etc.

Dave: Fantastic. In the Growth Hacks toolkit, you're going to find a checklist

of a ton of different ways you can segment your lists and ideas about how to

market to the different segments effectively.

Dan, you just went over a whole bunch of them.

TOUCH ME BABY Okay, last but not least, is the Growth Hack which I

call, “Touch Me Baby,” which is more frequent

touches, not with leads, not following up with

leads, but with customers, clients, or patients.

This dovetails beautifully with list segmentation.

Dan: First of all, again, all the way back to the

beginning, most business owners are thinking all

about new customers and taking the customers they have for granted and

they're horribly reluctant to spend money on existing customers and so forth.

By and large, the more frequently you arrive, the more frequently you engage,

the more present you are, the more business you do, unless you are either

boring or abusive.

The boyfriend who shows up with great regularity every night, but shows up

drunk at 2:00 in the morning and may throw her around is not particularly

Most business

owners are thinking

all about new

customers and

taking the customers

they have for

granted.



welcome. So the frequency in that environment is not perceived as a good thing

and the same thing is true as a marketer.

If you're only doing booty calls and you're only showing up when you want

money and you're a little abusive about it, frequency will not work to your

advantage.

If you’re deadly dull… you are the boyfriend who is going to grow up to be an

accountant…

Dave: There we go. The accountants have just dropped off.

Dan: …you may not be real welcome either. Unless you're boring or abusive

then frequency, consistency, and constancy all matter a great deal.

One of the ways you can get more touches in is if you list segment and you

communicate with different segments of your list differently. That gives you

permission. It gives you opportunity.

The other way you can communicate more without being perceived as a

nuisance is if you do it with multiple media rather one media.

• If you communicate only through email and you never do anything

offline, you will wear out your welcome faster.

• If you arrive in the mailbox every day and you never do anything online,

you will wear out your welcome faster.

• If you only push and don't drive to interesting things they can go see,

play with, etc., you will wear out your welcome faster.

• If you only pull, if everything is about “Now you’ve got to go fetch this,”

then you will wear out your welcome faster.

Again, Disney's very good at list segmentation.

o If you are a Disney timeshare owner, you get a bunch of stuff only if

you're a DVC club member.



o If you're a D23 member, you get a bunch of stuff only if you're a D23

member.

o If you're a regular customer, you get a bunch of stuff only if you're a

regular customer.

o If you're a multi-year visitor, you get stuff that single-year visitors don't

get.

Their level of communication with their best customers who are now in

everything I just named, is very much like ours at GKIC. It is essentially daily. If

you average it out, it's daily.

But it's because that person wants that level of relationship and they are hardly

ever abusive and they are rarely boring.

Dave: Well, we talked about the boring aspect of it earlier. Things have got

to be entertaining.

Dan: Even if they'll pick up the tab, you just don't want to go out to dinner with

the guy who wants to tell you the details of how he does colonoscopies every

time you go to dinner unless you're a guy who does colonoscopies too.

His wife has to have a big talk with him before dinner, “Read the paper today,

dear, because you need something to talk about other than how you do a

colonoscopy or we're not going to have any friends.” So you can't be boring.

Dave: It was interesting, as you were talking, I'm thinking about there's this

company Penguin Magic… and I buy mentalism stuff, that's all I buy; so if

there's a guy doing a lecture online, I'll buy that.

If you look at my buying history, that's all I've bought, ever. That's it. Books,

mentalism books. That's it. For people who don’t know, mentalism is a

branch of magic, it's the one that I'm interested in.

Yet, I'm thinking about the frequency. I get everything. This is such a

simple… if they just looked. That does annoy me.



Dan: Of course it annoys you. Now they could isolate you every once in a while

for a really short, hard cross-sell try. “We see all you've ever bought is

mentalism. However, you might want this because...” They could take a whack,

but they're sending the same stuff to everybody, so they're failing to get all the

money they could get from you and at higher price points for some of it.

Dave: Right. Well, mentalism as you know has high price points anyway.

Dan: Yeah, but they're still leaving money on the table and they run the risk of

annoying you because in essence they're being both boring and abusive.

They're being boring because they're feeding you a bunch of stuff in which you

have no interest whatsoever.

They're being abusive because they're hard selling, they're pushing you to buy

things that you have clearly demonstrated you don't want.

See, the earlier question about the person that's queasy about selling… well,

about the only reason people have a visceral,

negative reaction to being sold is when someone is

trying to sell them something they don't want, they

have no interest in.

People slam the door on Jehovah Witnesses, why?

Because they've predetermined they have no

interest whatsoever in hearing this, and as soon as

there's two people out there with a book, that's it.

We rarely have a negative reaction to being sold something in which we have an

interest.

SENDING NEWSLETTERS Dave: Absolutely. Sticking with this topic for just a little bit, one of the things

that most people don't do is first of all, they don't send any kind of

newsletter let alone an email newsletter.

We rarely have a

negative reaction to

being sold something

in which we have an

interest.



But if they send an email newsletter, they're not doing a print newsletter

and we have shown over and over and over again that print, as far as a

newsletter goes, trumps it.

Dan: Of course.

Dave: Why is that and why is a print newsletter so effective to send to our

lists?

Dan: Because it's the closest thing to real media of any of the choices and people

grossly underestimate the differences in the way people react and respond to

real media and non-real media.

When Glenn Beck was on Fox, his book factory was second to none.

I think in his peak year, he had 11 or 12 on the New York Times Bestseller List,

four or five at a time for 30, 40 weeks at a time, making millions and millions of

dollars in royalties.

The minute he exited Fox and went to his own internet TV network, whatever

the heck that is, last year he managed to get one book onto the list for a few

weeks.

Bill O'Reilly, however, who stepped right into the vacuum, had nine New York

Times Bestsellers last year.

Dave: Last year?

Dan: Yeah, last year. Some of them now are still on the Times list. I think if you

get a current Times list, four of the top 10 are Bill O'Reilly. They're selling in the

millions of copies because Bill is on real TV.

Real print is the same. I told you I'm not going to name him, but I was telling you

the story about a fairly famous entertainment personality who went through

this two-year buildup of his blog. He has three million readers and does

podcasts.



He said that there's no bump in his book sales from when he was on local AM

radio in LA. Well, local AM radio in LA, it's a big market and it's real media. I

don't know how to break the news to you, there's a difference.

People, when they subscribe to a newsletter and they get it in the mail and it

comes with regularity, they pay a great deal of attention to it.

When they get it by email, first of all, a bunch of it never even gets to them

because there's 412 spam filters in the way.

When it does get there, here's the thing… it's how do they feel about this when

they receive it? “Oh, it's them again?” “Ugh, more of the same,” “I'm too busy

now,” or “Oh, boy, I can't wait to open it.” That feeling is important.

There's also a certain obligation you create when you deliver real print media

because they know you spent money to do it.

They also know, they at least believe, the online stuff costs you nothing.

So at least at 40 and above, there is a subconscious if not conscious response to

obligation.

I can tell you right now, Carla gets all kinds of email

solicitations from charities and she feels no

compulsion; the $19 a month blanket thing comes on

TV, she does not respond to any of that.

She gets the mail from the starving Indians in

somewhere with the free address labels, they’ve got

her because she feels obligated; so it works.

So print media – newsletter or magazine – is entirely different. It's felt

differently than anything you can deliver online.

Print media is felt

differently than

anything you can

deliver online.



That's not to say that you shouldn't be doing a whole bunch of stuff online. I am

not saying that. But the answer to your question, absolutely, is it's felt

differently, therefore it is responded to differently.

Dave: In the Growth Hacks toolkit, there's an example… that's actually

copyright-free so you can use it… of a one-month campaign.

I'm not going to go over the whole thing because we're running up against

the clock, but it involves a whole bunch of different things.

They're all themed, so there’s an offer postcard; there’s a “staying in touch

with you” postcard, which has cool quotes on it. There's an email, there's a

whole bunch of different things and it's over a 12-month period in different

formats.

That's included in there. It's a one-month campaign that you can just take

and you can use it and you can model for other campaigns as well.



TOOLKIT

Module 4 Growth Hack #10 – Pricing

www.gkic.com

Pricing DEFINITION: Going and raising the Price… particularly if you can create an environment in which you can test it… is the fastest and easiest path to increasing profits in a business.

PROCESS: Go through these steps and brainstorm different ideas on how you can raise prices for different core offer(s) for your business.

Note: For additional brainstorming ideas, go through the process associated with creating a PREMIUM offer and a SLACK ADJUSTER offer.

STEP 1: IDENTIFY A SERVICE/PRODUCT YOU OFFER AND CREATE AN A/B OPTION WHERE:

A = Standard Price

B = Premium Price

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STEP 2: DETERMINE THE PREMIUM PRICE OF OPTION B – CONSIDER:

• Adding 25% to 30% to the Standard Price • Adding 50% • Adding 100% • Adding 200% to 300%

Example: Car Wash and Detailing Service at $100. Consider pricing at $125. $150. $200. $300 or $400.

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STEP 3: DESCRIBE THE HIGHER PRICED PREMIUM VERSION IN A WAY THAT:

a) Makes it seem reasonable (e.g., better quality, service, speed, etc.) b) Makes it seem believable... there's a reasonable explanation for the price (e.g., better materials,

higher-skilled labor, etc.) c) Makes the price actually irrelevant to the discussion... this could include factors like better

customers, positioning, scarcity, prestige, and so on.

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STEP #4: REPEAT FOR OTHER PRODUCTS/SERVICES

CHECKLIST OF PRICING CONSIDERATIONS:

� Am I thinking: “Would I pay that for this?” – because this DOES NOT MATTER! � Am I going after BETTER customers who can afford to invest what I deserve? � Am I creating prices based on BENEFITS and VALUE, rather than solely on what’s delivered? � Am I providing CONTEXT for the price that informs the customer of the REAL VALUE, from which

they can see that the final PRICE is actually a discount?

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LIST THE PRODUCTS/SERVICES YOU’LL NOW OFFER AT PREMIUM PRICES:

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DATES THEY WILL BECOME AVAILABLE:

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

PRODUCT ___________________________________________________________________ ON _____ / _____ / ______

3



TOOLKIT

Module 4 Growth Hack #11 – More Touches

www.gkic.com

More Touches DEFINITION: More Touches is more frequent contacts with customers, clients, or patients. The goal is to stay in front of them with relevant information that reinforces your status as the premiere choice for products/services.

PROCESS: Go through each step and identify all the ways you can think of related to staying in touch more frequently with leads AND your existing customers, clients, or patients.

STEP #1: IDENTIFY ADDITIONAL WAYS TO CONNECT. Examples:

• Blog post • Video • Podcast • Email • Fax • Tweet via Twitter • Facebook Post • LinkedIn Post • Postcard • 2-Page Self Mailer • 8-Page Newsletter • Audio CD • DVD • Gifts (Candy, Flowers, Books, etc.) • Other ________________________________

STEP #2: CHOOSE FREQUENCY OF CONTACT. Examples:

• Annually • Twice a Year • Bi-Monthly • Monthly • Bi-Weekly • Weekly • M-W-F (or similar) • Daily • Other ________________________________

1

STEP #3: IDENTIFY TOUCHES BY LIST SEGMENT. Examples:

• ALL Segments – Weekly Email Newsletter • Members – Monthly Print Newsletter • Frequent Buyers – Monthly Print Newsletter + DVD

Ways to Connect Frequency List Segment • Blog post • Video • Podcast • Email • Fax • Tweet via Twitter • Facebook Post • LinkedIn Post • Postcard • 2-Page Self Mailer • 8-Page Newsletter • Audio CD • DVD • Gifts (Candy, Flowers,

Books, etc.) • Other _________________

• Annually • Twice a Year • Bi-Monthly • Monthly • Bi-Weekly • Weekly • M-W-F (or similar) • Daily

• Fans • List Members • Buyers • Frequent Buyers • Paid Membership • Other ______________

Ways to Connect Frequency List Segment • Blog post • Video • Podcast • Email • Fax • Tweet via Twitter • Facebook Post • LinkedIn Post • Postcard • 2-Page Self Mailer • 8-Page Newsletter • Audio CD • DVD • Gifts (Candy, Flowers,

Books, etc.) • Other _________________

• Annually • Twice a Year • Bi-Monthly • Monthly • Bi-Weekly • Weekly • M-W-F (or similar) • Daily

• Fans • List Members • Buyers • Frequent Buyers • Paid Membership • Other ______________

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DESCRIBE YOUR PLAN FOR MORE TOUCHES (MESSAGING, PRIORITIES, START DATE, ETC.)

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Your Name Your Street Town, ST 44444

“My! Look At How Fast You’ve Grown!”

4

“My, Look At How Fast You’ve Grown!”

Here’s A Free [YOUR EVENT] That’ll Help You

Grow Faster In [INSERT NICHE] And [INSERT BIG BENEFIT] Hi there – this is [YOUR NAME] and I want to invite you to a one-of-a-kind event taking place at [BUSINESS NAME] that we’re calling:

The Why-Not-Have-a-Party-Party! You may be wondering, “Why the Celebration?” - well, we’re just so thankful for all our friends that we wanted to invite you to come by for a good time on our behalf. It takes place all month and there’ll be cool stuff like [DESCRIBE REFRESHMENTS, ETC] along with stuff like [DESCRIBE KID STUFF] for the kids to enjoy as well. Another reason we’re celebrating is we’ve just announced our [HOT OFFER TITLE], because it includes:

• [OFFER BULLET 1] • [OFFER BULLET 2] • [OFFER BULLET 3]

There’s hardly anything more fun than this [TYPE OF OFFER] – especially when you can get it for [PRICING]! And if you act before [SCARCITY] you can also get [BONUS BULLET] as well! So swing on by this month for treats, refreshments, and some fun stuff for the kids. It’ll be a great time and make sure to check out [HOT OFFER TITLE] [YOUR NAME] P.S. If you can’t make it in, but still want to check out [HOT OFFER TITLE], then [CALL TO ACTION] to get the inside scoop and experience [BIG WIN] too! But hurry, it disappears when [SCARCITY] arrives.

5

Return Address Here

[MONTH] NUGGETS OF WISDOM!

(My! Look At How Fast You’ve Grown! Here’s How To Grow

Even FASTER In [Insert Niche]

6

[MONTH] NUGGETS OF WISDOM

“Perseverance is failing 19 times and succeeding the 20th.” - Julie Andrews

“You are never too old to set another goal or to dream a new dream.” - C. S. Lewis

“The secret of getting ahead is getting started.” - Mark Twain

A reminder: Swing on by for our Why-Not-Have-a-Party-Party taking place ALL this month for treats, refreshments, and some fun stuff for the kids. It’ll be a great time and you’re invited!

But even if you can’t make it in, you’ll definitely want to check out [HOT OFFER TITLE]. Just [CALL TO ACTION] to get the inside scoop and experience [BIG WIN] too!

But hurry, it disappears when [SCARCITY] arrives.

7

15 Minutes of FUN T H E M O N T H L Y E M A I L N E W S L E T T E R

Y O U C A N ' T W A I T T O G E T !

INSERT YOUR PICTURE HERE! <Insert Your Contact Info Here>

Y E M A I L N E W S L E T T E R Y O U C A N ' T W Here> Quotables

"Perhaps the very best question that you can memorize and repeat, over and over, is: What is the most valuable use of my time right now?" - Brian Tracy "Experience is not what happens to you. Experience is what you DO with what happens to you. " - Aldous Huxley "To accomplish great things, we must not only act, but also dream, not only plan, but also believe." - Anatole France The Lighter Side... "Oxymorons"

Why is the third hand on the watch called the second hand?

Why do "fat chance" and "slim chance" mean the same thing?

Why do we sing "Take me out to the ball game" when we are already there?

Why are they called "stands" when they are made for sitting?

Why is "phonics" not spelled the way it sounds?

If all the world is a stage, where is the audience sitting?

8

How To Gift The Hosts When You Stay at Their Home

You may wonder what you could do to show your appreciation when you will be a house guest.

The length and frequency of your visits are factors to be considered. If you visit only once or twice a year, it's nice to bring a gift, though it may not actually be expected. In cases where the hosts bring a gift when staying at your place, you must bring a gift.

When visiting overnight or for a weekend, taking the hosts out to breakfast before you leave is a nice touch. Other tips from Charlotte Ford's Guide to Manners for the Modern Age:

• Instead of bringing a gift, some people wait until after the visit to send one. Then, they have an idea about what the hosts would like.

• If you frequently visit with the same person, but they are unable to travel to your home, taking them to dinner at a restaurant is nice.

• Or, instead of gifting each time, you could reciprocate with a membership to a wine-fruit or cheese-of-the-month club.

A thank you note is always appreciated by the hosts, but sending a thank you note by email is now acceptable. That's all for this month! <Insert Whatever Signoff Image/Logo You Use>

Your Name

http://www.yourwebsite.com P.S. A reminder: Swing on by for our Why-Not-Have-a-Party-Party taking place ALL this month for treats, refreshments, and some fun stuff for the kids. It'll be a great time and you're invited!

But even if you can't make it in, you'll definitely want to check out [HOT OFFER TITLE]. Just [CALL TO ACTION] to get the inside scoop and experience [BIG WIN] too!

But hurry, it disappears when [SCARCITY] arrives.

9

http://www.yourdomaingoeshere.com/



TOOLKIT

Module 4 Growth Hack #12 – List Segmentation

www.gkic.com

List Segmentation DEFINITION: List Segmentation is about fully monetizing your assets, your customers, by who they are. The best segmentation is of course customized offers for customized segments of lists or even per customer.

PROCESS: Go through each step and fill in all the ideas you can think of related to how you could segment your list(s) in ways that best enable the creation of highly customized (and highly profitable) offers.

STEP #1: REVIEW YOUR LIST SEGMENTS FOR POTENTIAL USE. Examples:

Demographically:

� Age � Marital Status � Children / No Children � Income / Net Worth � Education Level � Business owner vs Employee � Homeowner vs Renter � City vs Rural � Birthday, Anniversary � Geographically: By Country, by Region, by State, by County, By City, By Neighborhood within a

City

Psychographically (how they think):

� By niche - occupation, vocation... i.e., factory worker, florist, sales clerk, dentist, web developer � By subculture - interests, hobbies, passions... i.e., golf, Harley-Davison motorcycles, college alumni,

sports team, scrapbooking, wine � Political / Religious views - Democrat, Republican, Christian, Agnostic, etc. � Personal Affinities – areas where YOU relate to them, i.e., golfers, sports team fans, professional

career, etc.

Response Patterns:

� Buying history - products / services bought from you, bought from competitors � Average purchase price � By membership level - if you've set one up, USE it � Frequency of buying - target hyper-responses � Types of products/services purchased - e.g. grocery stores create customized coupon books based

on past purchase patterns � Customers who only buy in certain months or times of year (e.g., only in Winter or Summer) � Time elapsed since most recent purchase - used to buy every week but dropped off - gone for 3

months; 6 months; a year; etc. � Response history - do they open email or not? Do they buy online? phone? In person? By mail? � Leads who expressed interest but never bought � Credit Card declines � Returns - contact them to offer another chance or a downsell

1

STEP #2: BRAINSTORM OTHER POTENTIAL SEGMENTS TO TARGET. Examples:

• Affinities: Is there anyone in your list with whom you have a REAL affinity? You're a golfer and you want to make a deal just for golfers on your list. Ditto for other hobbies, sports, careers, etc.

• Customers you simply LOVE to do business with – easy to work with, they pay on time, give you testimonials, whatever.

• LOST Customers – those who were once great, but have dropped off the map.

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STEP 3: BRAINSTORM OFFERS BY SEGMENT. Examples:

• Credit Card declines - go to them and offer to take a different card / check / cash for the product/service they indicated interest in before.

• Subculture – create a Harley-Themed promotion for a regular service, e.g., “ride your Harley to the store and get 25% off any item!”

• Combine segments: Golfers + Gold Members + Big Spenders = Members-Only Golf Trip Offer

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DESCRIBE YOUR NEW SEGMENT-BASED OFFER IN DETAIL.

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DATE IT WILL BECOME AVAILABLE: _____ / _____ / ______

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Documents

GROWTH HACKS THE 12 STRATEGIES FOR DOUBLING YOUR PROFITS …Hacks... · Maybe you will, but if you run some math on that, you will find you can lose 10%, 20% of your customers with