Peaceful Profits Podcast Ep. 11 - The Difference 0.2% Makes
Synopsis:
A tiny lift can create massive wins. In this bite-size episode, Mike Shreeve shows how a simple 0.2% improvement—from book buyer to backend offer—can unlock ~$800K in annual revenue.
Instead of chasing new funnels, focus on customer experience, micro-optimizations, and retention.
Perfect for entrepreneurs exploring Peaceful Profits marketing strategies, Peaceful Profits coaching, and scalable book-funnel growth without the chaos.
Transcript:
The Difference 0.2% Makes
[00:00:00] Hello dear friends. Hope you're doing well. Mike Shreeve here. Thank you so very much for taking a listen to this very short episode of the Peaceful Profits podcast. This is being recorded as a result of a conversation that our director of marketing here at Peaceful Profits and I had yesterday and something was pointed out and I wanted to make sure that we get it to you because I think it addresses.
A couple of very important issues that a lot of business owners face in this space of online marketing. And it really comes down [00:00:30] to this. There are easy ways to grow a business and there are hard ways to grow a business. One of the hard ways to grow a business is to misidentify what is actually leading to your growth or.
Causing your growth to stall, right? So it's to take a look at what you've been doing. It's to take a look at your data. It's to take a look at what actions you have and haven't taken, and then properly identifying what is the bottleneck. Or what is working, so you can [00:01:00] do more of that. Another really hard way to grow a business would be to jump from idea to idea.
Hoping that the idea is what will be the breakthrough rather than say, for example, your systems or your offers or things like that. Okay. So those are the hard ways to grow a business. The easy way to grow a business is to do exactly what I'm about to share with you, to think about things in the way that we think about things, which has allowed us to grow so quickly.
But it really comes down [00:01:30] to, to, to nothing more than thinking about things like this. So while most people are worried about what funnel, what marketing, what messaging, and throwing the baby out with the bath water and. Reacting to every time a press releases, Facebook changes its name, and now we need to redo everything.
And instead of running your business that way, we look to the two tenths of a percent changes in anything and everything that we're doing. So I'll give you an [00:02:00] example. We were analyzing the performance of one of our book funnels. For those of you who know. What it is that we do low ticket front end acquisition funnels, which lead to selling the backend.
In other words, you can make a mini course, you can make a book, you can make all sorts of different things to offset the ad costs, run traffic at a profit or at least break even. And then build those customers, nurture those customers, turn them into backend sales for higher ticket, high value offer services, et cetera.
[00:02:30] So what that means is that. Rather than jumping from idea to idea or constantly launching a new funnel every two days or freaking out, if we have three days of bad Facebook ads or anything like that, we have conversations like this. We took a look at our book and we looked at the fact that for every 100 books that we sell for.
This specific book that we're talking about, and I won't tell you exactly which one it is, but for the book that we're selling with this particular funnel, we know that one [00:03:00] out of 100 upgrade into a $10,000 offer. So one out of every hundred sales upgrades to at least our $10,000 offer. But we have other stuff.
We just call it the customer. To closed backend sale. So that's basically just the measure that we're looking for. And so you can do all sorts of things, right? You can say how many books do we need to sell per day in order to get a close per day? And what will that cost? And all that kind of good stuff.
But one of the conversations that we always have is, [00:03:30] but what if 1.2 people bought out of every 100, right? Because we already know that we're getting sales. We already know that people are upgrading. We don't need to throw the baby out with the bath water. We're just asking what would happen if we got two tenths of a percent better results from the stuff that is already working, from the stuff that's already working.
And [00:04:00] for us, that represents probably about $800,000 per year in revenue. Specifically revenue. That has a zero cost to acquire. Now, there are of course costs to fulfill, but they're marginal. They're less than, I think, 20% or 25%. So we sit there and we have these conversations and we think, how can we improve something by two tenths of a percent?
'cause right now it's converting at 1%. We want 1.2%. That would get us an extra $800,000. You can do a lot with $800,000 [00:04:30] every year. You can hire all sorts of incredible people, or you can put that money away, or you can do whatever it is that you wanna do with it. That's all, that's a good chunk of money in any business.
And it really comes down to, and this is the thing that I want to overemphasize to everyone, whether you work with us or you don't work with us. Just if you're running a business, please take this message to heart. To make a two-tenths improvement in something where, think [00:05:00] about the customer journey here.
Somebody is coming into your world and buying something from you. What we're really talking about is a two tenths percentage improvement in the customer's experience. And this is where so few people in the internet marketing world are focusing on and as a result, they're losing out on what I believe are some fairly simple and easy profits.
I'll give you an [00:05:30] example. We just recently purchased the services of a publicist. We're at that stage with this particular business and I, I don't recommend that you've hire by the way if you're not like making really good money, don't worry about publicists. That's not something you need to worry about early on.
So please don't take this as me telling you need to go. Hire one. This is something you do later on and et cetera, et cetera. But we just hired a publicist and one of the things they did, which I thought was so cool, because they're not cheap they're quite expensive, is they have something called Ava Bot.
I just discovered this yesterday. We haven't [00:06:00] deployed it. I don't know anything about Ava Bot. I'm not necessarily saying that, and I'm not endorsing it, but it was such a cool experience because. We purchased, and then there's this whole bot system that runs you through and asks you what you like and what you don't like.
And what it's doing is it's custom ordering you a welcome gift. And this is the first time I'd ever seen something like this. You answer a few questions about the stuff you like. It was like, do you like the outdoors? Do you have kids da. All these different questions. [00:06:30] And I thought that was really interesting.
And I noticed myself in how I was interacting with this business. It changed my perception of what I had just purchased. And these are the kind of things that we think about in our company. Because two tenths of a percent is not a significant improvement in terms of the [00:07:00] difficult things to improve, right?
So difficult things to improve conversion rates, sales team close rates, marketing, et cetera, et cetera, et cetera. But do you think you could improve the experience? Of the people who are purchasing things from you by two tenths of a percentage point. And I think if you really sat down and thought, how can I make this a better experience [00:07:30] for the people who are purchasing from me?
I think you could probably think of enough ideas to get much more than two tenths of a lift. So an increase in the outcome that you're proposing, if you sit and think through, yes, but how can I make this better? Especially if you're following our particular model. So if you're following our particular model, which is sell the book, use that to offset costs, then what you're really talking about is.[00:08:00]
If a hundred people are buying that book, one of them is upgrading to 10,000, you probably have another 15 to 20 of those same 100 who would have upgraded, or for some reason, they were able to justify not upgrading. So all we have to do is give them a reason to upgrade. And I think oftentimes we think that the reason has to be big and epic, and we need 90 case studies is what we'll finally do, and that'll finally [00:08:30] people purchase emotionally.
And one of the emotional trigger points that we have as human beings is rating how we are treated. Raiding our experiences and then assigning that emotional experience to the person who gave it to us. If you feel let down, you will feel let down. Now, I know that sounds so obvious dude, you are telling me some [00:09:00] obvious stuff but think about that for a second.
If you feel you have been let down, whether you have been let down or not. You will feel that person has let you down, and that could be the only reason that you don't buy the next thing from that person. You could, again, following our model, so you got the book, mini course, whatever. You go through the mini course, you go through the book, you think, oh my gosh, this is exactly what I need in my business.
I love it, da. And then something [00:09:30] happens where you feel let down. Logically you say, this is the best I need this in my business, but I'm not going to buy it from this person. Why? Because something emotional. Because you for whatever reason, right? That's the negative way to say it. The positive way to say the same idea is you come in, you buy the book, you love it logically, you're like, this is exactly what I need for my business, and then all of a sudden [00:10:00] something positive happens.
And you think to yourself I think this is the thing that puts me over the edge. These are the people that I will do business with. And so when you're looking at your business and you're trying to think of ways to extract more margin, 'cause that's what most of us are trying to do, it's not really about revenue.
Like revenue for the sake of revenue is a great way to grind people to. To either quit or not work for you or to grind yourself down, [00:10:30] margin creates peace In a business, the more profit you have left over, the more peaceful your business is. Another way to say that is, can you get more revenue from the same actions you're already taking?
This isn't about launching another webinar and doing another funnel and changing the copy 90 times and do it is if people are coming into my business and look whether you're using my model or not, maybe you want to do lead Mag, maybe you wanna do webinars, whatever it is, if something's working in your business, the first [00:11:00] question to ask is, how can I make it?
A better experience for the people who are coming through. And when you do that, what will happen is the current efforts that you are making will net you significantly bigger returns. And it truly can be as simple as when somebody becomes ex client or ex customer, they get this. It can be that simple.[00:11:30]
You could go this afternoon and find a solution. I'm not saying it has to be Ava bot, I'm not saying it has to be a gift. It could be a free training, it could be some experience, it could be, there's a whole number of things. It could be, we're always testing different ideas. And based off our conversation yesterday, we're definitely gonna be testing a lot more ideas.
But it can be anything that improves the experience of the person who has purchased from you. And as a result, you will get that emotional [00:12:00] buy-in that you need to be able to pull more revenue from the same results, from the same effort, from the same functioning whatever it is you're doing, funnel sales process, et cetera.
Okay, so anyways, I just wanted to share that with you. It's not about jumping from idea to idea, it's about stacking the experience, making it better for the people who are coming through the things that you already have. If you have nothing, then that [00:12:30] means. You can start from scratch. You don't have to wait until it's been out in the wild for a while and think about, oh man, all the 10,000 people that didn't go through this experience, and how am I gonna, so if you're starting from scratch, congratulations.
You can think about this as you go through that process. You can have it from day one. But you need to have it. And then lastly, to think about your business in two tenths of a percentage increments, not in, how can I make this go from 1% to 9%? Because when you go from [00:13:00] 1% to 9%, what you're talking about is a complete rehaul.
You're talking about totally new strategy. You're talking about throwing things out. And look, when you've got a big team and your systems are in place and you're, that's all cool. You can do that. But until you have consistent margins, until you have predictable income, until you have the kind of peace and business that allows for the chaos of completely ripping things out and trying things new, thinking about things in two tenths of a percentage, [00:13:30] execute, okay, measure.
Great. Let's do another two tenths of a percentage execute measure. Did it work? Did it not work? When you're looking at. What's wrong with the business? It's not always about a big gaping hole. Sometimes it's just this thing over here is two tenths of a percentage off, and so it's costing us $800,000 a year, right?
Again, it's a significant amount of money and, but it might only be that two [00:14:00] tenths of a percentage, not 5%, not the, so just as you're running your business. Having the clarity of what is and isn't contributing and then understanding that this is a game of two tenths of a percentage. It's the little micro improvements over time.
Don't throw something out, just because it's not working as much as you would like if it's working a little, [00:14:30] fix it until it's working a lot. That's really the, if I could. Bring a message to the internet marketing world, which is so much about jumping from shiny object to shiny object, and then people get stuck because they're not getting the momentum and nobody's telling them, you know what you need to do?
You need to make something that's going to suck a lot at first, and find out what of it isn't sucking that much, the two or three points, and then fix all the other stuff until over time gradually it will. It [00:15:00] will be the fully functioning thing you hoped it would be. But anyways, wanted to share that with you today.
Hopefully it's helpful. Hope you have a wonderful weekend and I'll talk to you later.