Who Are You Focusing On?

Categories: Blog, Marketing, Philosophy

Who Are You Focusing On?

In Presidential Elections, it's no surprise that the candidates focus most of their budget, human resources, and time on battleground or "swing" states.

Why is that?

It has something to do with Newton's First Law of Motion:

An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an outside force.

States that are historically Democratic will likely stay that way (i.e. - California, my state). States that have historically voted Republican will likely stay that way as well. But some states are up for grabs and swing so much that there isn't such historical consistency to rely on them to come through for one particular party.

In business, two of the most important factors that predict future customer behavior are recency and frequency.

Recency: How recent did the customer last purchase?
Frequency: How often do they purchase?

(You could substitute "purchase" for "vote" because this applies in politics as well).

On a scale of 1 to 5, let's say the most recent and frequented customers are 5 in each of those categories and the least recent and frequented customers are 1.

If you were running for President, who would you give most of your attention and resources to?

Probably not the "55"-rated States ("5" in recency, "5" in frequency) because they will likely "stay" in motion as Newton described and vote for you again. And even when outside forces are present, it takes a lot to stop the momentum of "commitment and consistency." Don't forsake them; simply keep them happy.

Likewise, probably not the "11"-rated States either (this mainly represents the opponent's supporters, especially if you segment out non-voters who would also technically make up this group).

That leaves people (or States) around the "33" mark, give or take. The middle. The battleground.

Now, apply this to your customer base and you'll get a matrix like this:

"Customer Focus Matrix"

In business, there are philosophies that focus on BEST customers. There are reactivation strategies that focus on the WORST customers. And don't get me wrong, there are times and places for it all. But your focus should go to "middle-ground" customers and those likely on their way if no outside forces intervene.

Think about it --- a customer who is a "5" in recency (which means they JUST bought from you) and a "5" in frequency (which means they've bought from you A LOT) will probably keep going, pending that you've continually over-delivered and satisfied their needs. Wait until they show signs of slowing down to a "4" or "3" before you spend precious, limited marketing dollars (or offer unnecessary discounts).

Likewise, those who have been away for years (a "1" in recency) and never bought that much to begin with when they were active (a "1" in frequency) shouldn't get your marketing dollars. Chances are, they will stay at rest (Newton's same law, but also known as "Law of Inertia.")

It's the ones in the middle and the once "best customers gone bad" who have the most potential. To get those folks to the "44" or "55" territory would mean a visible change in your bottom line. Then, chances are, they'll keep buying (they make great continuity customers who will stay with you forever).

Recency is simple but not easy. ONE sale takes someone from a "3" in recency to a "5" because the only qualification is a recent sale. Upselling and exposure to backend offers and continuity eventually gets them to a higher frequency score. But frequency doesn't rise unless they remain recent.

So that means, it's your job to make sure a customer never slides down too far. In my home study course, we cover all these RFM metrics and how to pull this data out of Infusionsoft and other e-commerce systems.

It's said, "Where focus goes, energy flows."

Who are you focusing on?





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9 Responses to “Who Are You Focusing On?”

  1. Hi Jermaine.

    I have a question for you.

    I noticed you have your hearandplay 4 videos in your membership site and also in youtube. I have 10 videos for my membership site that are delivered one at a time.

    Do you suggest these 10 videos are also placed in youtube?

    I am wondering that because once they are in youtube, there is "no need" to have the membership site, no?

    What's your philosophy on that?

    Thanks

    Author
    • J Griggs (PERMALINK)

      This is a great question. In fact, I've been asked it a couple times. It lets me know folks are really going through my sequence and that's great.

      First, I would say my whole video setup will change shortly. I just finished a plugin with wistia that basically runs actions down to the second. So if they don't make it to minute 5, no actions run. Or if they don't make it to 50% of the video, nothing happens. Prior to that, I use a "time on page" script, which is indicative but not precise. However, getting precision requires me to switch to wistia at the moment. So that eliminates the youtube dilemma, if you will.

      I started by using my own custom players in ezs3. But then I thought about the power of youtube. My first video has received 150k views. Our youtube channel has over 23,000 subscribers. And analytics tells me I get a lot of traffic from youtube. By having the videos still viewable by public over there, I can drive them to my landing page with the ads that show up in the video as well as link in the video description (and many viewers do).

      I can also benefit from increased ranking as my views and ratings continue to climb. I suppose I went for the "greater good"... and by putting it on youtube, I benefit from:

      -Increased exposure
      -Traffic
      -And all the things that come with that.

      By keeping it off of youtube, I benefit from:

      -More control in my sequence

      And truth be told, a prospect that will search for what they think is the next video in my sequence (because it's not apparent... they aren't marked part 1, part 2, part 3, part 4) is a great prospect. And if they go ahead, so be it. It's a loss of control and it may throw off some of my tracking but apparently, I'm willing to give that up.

      With that said, you could easily go both ways. I mean, if you really value control and don't think you'd gain enough traction to warrant putting videos on youtube, keep them 100% private. In our case, we had a youtube following and some good traffic to our channel as well as great rankings. These videos were on youtube FIRST... not in my funnel. I just chose to keep them on there.

      With wistia, the user-based tracking down to the second and the ability to run actions directly from the video is such a powerful tactic, I'm willing to switch players... BUT STILL keep my youtube videos out there. But since my player won't say youtube, no one will be prompted to go search youtube unless they do it on their own.

      I hope this all makes sense. With where I'm going, I probably would recommend most people keep them private because that's what my sequence will look like days/weeks from now. But if they have a great youtube following or using content that was formerly on youtube, I wouldn't absolutely say take it down or make it 100% private either. Dualities reign in both decisions.

      Thanks,
      JG

      Author
  2. This is a great answer Jermaine.

    I like it when you say that you don't mark it part 1, part 2, etc.

    What do you think if then I take those 10 videos and create a "youtube version" with no "watch the next step"?

    Every video will show a link to the squeeze page to the membership site where they will still get them for free, but at least they are inside my environment.

    I am assuming that not all Youtube visitors that find me will watch all videos in one "sitting", which means, that if they subscribe because of YOUTUBE, now they are in my funnel.

    Where this will leave me is to take advantage of traffic that will come from youtube and I know I may risk a percentage of them that may say "oh, these are the same videos I watched in youtube", but again, now they are in my funnel.

    Do you think this is a good strategy to "re-use" those videos or you still think that since they are not currently in youtube, I should keep them inside the membership site?

    Thanks again....you have helped a lot.

    Author
    • J Griggs (PERMALINK)

      You could certainly repurpose the content on youtube as separate versions that are labeled independently from one another but all lead to your funnel landing page. That could work.

      Keep in mind, that my videos were ALREADY on youtube and I wanted to benefit from the traction they'd already developed. Starting from scratch, you do have the flexibility to do as you said. If you are using customerhub's built in video player, then you can probably have the same videos out there on youtube. I doubt many would find them, especially if you aren't using youtube inside customer hub. If you ARE using youtube inside customerhub, then you could even make two youtube accounts and keep them separate. Youtube allows you to make a video's status "UNLISTED" which means it won't show up. So the videos inside customerhub are unlisted so no one would ever find them even if they got to your youtube main channel. But you have another youtube account that has these videos listed as normal (but no part 1, part 2, part 3, part 4, etc... and titled independently). The odds of them being found by the same people in your customerhub are low. And if they are able to find them with the roadblocks you've put up, they're good prospects! (In your reminder e-mails, you can even throw in a few automation links that say: "If you've watched this video already, click here." This lets people tell you that they've watched it and they'd be treated as someone who took action.

      To be honest, you've given it more thought than I ever have! I just wanted them up! And I wanted the best of both worlds.

      Now, paid membership --- another story.

      Thanks,
      JG

      Author
  3. Yes, the reason I have given it a lot of thought is since I am starting from scratch, just to make sure I do the "right thing", especially learning from the pros like you.

    Yes, I am using customerhub player for the videos so I will only have to post them to the youtube to get some referrals back to my funnel.

    If they realize that those videos are the same as in youtube.....well that's a "nice risk" to take given the fact that I will probably be getting prospects that otherwise I would not have had.

    I will "re-brand" them for youtube.

    I will take a look at your wistia plugin and the "time on page" one to see which one will be more appropriate for me once you make them available in your course which I hope is soon!

    Thanks Jermaine...as I have said.....you have helped me tremendously.

    Author
    • J Griggs (PERMALINK)

      My pleasure Jim. Glad you've got it.

      Course = very soon. This week.

      Thanks,
      JG

      Author
  4. That's great.....early xmas!

    Author
  5. Hi Jermaine, I am looking forward to your home study course.

    Author
  6. I've never seen recency and frequency broken down this way. This was amazing and you're a great writer. Please start back up!

    Author

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