Welcome to the Fanbank 15 minute breakthrough where you take a short break from your incredibly busy day and get a breakthrough idea for your local business. In this quick webinar, we teach you how to grow and strengthen your business and today we are covering taking back control of your customer list.
Hopefully, everyone can see the screen now. So I'm on the agenda slide. So if you have any questions during the presentation go ahead and type them into the QA box on your Zoom conference screen. Will try to answer any questions at the end.
So, first I want you all to know that everyone here at Fanbank 100% gets it. Your goal is customers through the door. Allot some seats, appointments on the books. We totally get it. Ideally you'd be able to run the business staying focused on making your product and making the customer happy.
Taking the time to come up with things to do to grow your customer list probably makes sense, but it's not something you have time for. The goal of this webinar is to show you the direct connection between building your customer list and getting those purchases, getting those seats and appointments on the books and the customers through the door.
So, here's what we'll cover quickly: why customer lists matter, how to control your list and why that's so important, building and engaging your list and then free options and paid options. Throughout the webinar I'm going to include references to the Fanbank features you use to get these things done. If you're one of our visiting guests today, not a member, these strategies and tactics apply to you just as much as any other small business.
Just by way of introduction, I'm Mitch Jacobs, CEO and Founder of Fanbank. Here's what qualifies me to have this conversation with you today. I have spent 25 years as an ally to small business owners. I've been on the forefront of all the payment processing, lending and marketing technology that swirls around your business today. And because I've been on the inside of the decisions about pricing service levels and pretty much everything that goes into these products, I am in a position to share that information with you.
I've also been working directly with many of you on the phone and thousands of businesses around the country for over 20 years now. I know that because you run the whole show and make all the decisions, you don't have time to become an expert really in anything because you have to do everything. So my goal with these sessions is to provide you just enough information for you to take action with your business. Remember, we are always happy to share more and we are always here to help. So let's dive into why customer list matter.
They matter and they are essential part of your business because they are the most reliable way for you to drive sales. This includes sales from new customers, repeat sales, and when you have a customer list, you're prepared to respond to challenges and opportunities in your business.
You see that funnel on the right side of the screen, sales go through these stages: awareness, building your customer list, engagement and purchase. You can't just land at that last step in the process, sell reliably every time you can drive impulse purchases. Things can happen that result in sales, but if you really want to achieve that goal of getting control of your sales, the key is the steps that are above the getting the sale more so than the sale itself.
And what's unique about independent small business owners like everyone who’s on the phone is you have a very, very different funnel than online businesses and chains and franchises do. Chains and franchises benefit from the awareness in dollars that come from enormous sums of money that are spent by their corporate franchises. Online businesses do a lot more with inbound marketing and other strategies that just don't make sense for independent small businesses.
Fanbank members receive some similar benefits on the awareness funnel and the getting the name out that come from the Facebook ads the system runs on your behalf. But with the limited budget that you have, there's a limit to what you can do on the awareness funnel and the efforts to just get your name out. Where you can have the greatest impact is in the part of your sales funnel where you build your customer list and you work your customer list.
If you control the customer list and you put the right amount of energy into these steps, you're going to achieve your sales goals. So the question is are you controlling your customer list. If you're not controlling the top parts of that funnel, the parts above sale, you're missing out on a lot of opportunities and you're making your business vulnerable. And I think a lot of businesses are depending the left side of the screen here, we have followers on Instagram and Facebook or reviews and ranking. And really depending on those things as the top of their funnel.
And as you know these things are wildly out of your control. Small businesses put a ton of work into building followers for their Facebook fan pages and then just a couple years ago, Facebook overnight reduced the organic link so that there's less than 2% of your followers that see your organic posts. That means every time you post as a business fan page, less than 2% of your customers will see those posts.
In review in search sites, you can be a five star champion one day and be hit with a one star review the next. It's not that these aren’t great tools. You just want them to be a part of your mix whereas for too many businesses, they’re brought in the habit of depending on them as their only top of the funnel strategy.
On the right side, there is another hazardous habit that many small business owners I’m talking to today, and that we work with, have gotten into, which is the “do it for me” approach, where businesses are fully relying on third parties to deliver a customer. The recent most glaring example is with Groupon. Groupon shows how expensive it can be to a third party to say “I'm not going to work on this top of the funnel piece of my sales strategy. I just want to work on the sale and the product and the customer. You deliver the sale to me.”
Well, that costs as much as $0.75 on the dollar. Too expensive and not sustainable. Also many small businesses are in a cycle of this sort of constant hiring and firing instead of looking for solutions that can be a part of their effort to grow sales. Where they stay sort of primarily responsible, they're looking for companies that can deliver the end sale and continuously firing companies when they don't get that result. And so you really need to get in the game and start building and engaging your list.
So let's cover some of the keys to success in doing that. The first thing you have to do is break through the noise. So if you're going to start going about creating content or creating ideas for how to engage customers, don't mess around. This is a crowded cluttered world and your customers are extremely, extremely distracted. You've got to go big or don't even bother. And so all of you that are Fanbank members know that we sort of have a big belief in following what the chains and franchises have done using sports and entertainment, music, fashion, travel as ways to get that customer to pop their eyes open and pay attention to you.
Sometimes that could work a little more effectively than another business advertising a personal training session or auto repair or a hair service. You can really, just for a moment, get that distracted customer to pay attention to you. So with the summer giveaway program, you have options for the free cruise giveaway that you see here on the screen. There's a family trip vacation giveaway to an amusement park of your choice. You can go and see your favorite sports team and there's a local shopping spree in your neighborhood. So, a lot of different options in your Fanbank portal, but what you see in the pictures on the right side is that idea of a customer scrolling through their Facebook feed. They see an ad from your local business with a free cruise option and if it’s nothing else, it's something very different and exciting and aspirational to them and so they're starting to pay attention. You've started to win the battle.
Then you follow that up with a reason to engage. So with this sweepstakes, it's offering the opportunity to win the sweepstakes, this is the easiest way to get customers engaged and then there's the key step: capture the email. This is the pivotal step. Think of this as turning the yellow pages the way you have to pay for the information to the white pages where the information comes to you for free. So once you get that email address, you now have the ability to communicate with that customer for free. And so, you see the image in the middle of the screen there that has the first name, last name, this is one of our customers, Playa del Rey Florist, that is their email lead capture screen. Every one of you has a customized email lead capture screen.
Every time you capture an email, it's stored in the Fanbank system. You can then email the customer directly from your portal or you can download the list and email them directly. Now the next key is to continue engagement. This is where many businesses are making a mistake. They focus on getting a customer on the list, but they don't follow up and keep engaging the list. So, on your Fanbank platform when the customer enters the lead, they automatically receive an email from you welcoming them to your business so that begins the immediate relationship and deepening that engagement with the customer. In that initial email, there are links to your social profile pages, encouraging them to come and make a purchase. So if you collect an email, it's very important that you immediately start engaging with them.
Then you need to follow up that engagement, not too frequently. The default on the Fanbank platform is every three weeks or so, reminding of the contest, the opportunity to get more entries by making a purchase with you. And you want to follow up with a look and feel of the email that remains similar to what the customer originally saw when they first engaged with you. You know they were interested in something. Now once you've gone six or seven touch points deep, it's definitely time to move on to something new, but when you're in that first phase of deepening the relationship, stay consistent because you're tapping into something you know they're already interested in while you build that engagement in your business.
So those are the keys to success. Let's talk for a second about free and fast ways to build your list. Here’s where you have a huge advantage over the chains and franchises and online businesses. You are a neighborhood, you're a part of the neighborhood, you're a part of the fabric, and so you have contact with the community. Your staff has contact with the community and with customers. Your existing customers can be ambassadors. And you want to make every point of contact an opportunity to build your list.
And what's cool about where things are today is, if you remember the old fish bowl where you you ask people to drop their business card into the fish bowl in order to win something or get something, and then they become a part of your list - well today you have the QR code or the link. These are incredible new tools that enable you to take every point of contact and turn it into a digital landing page experience where you capture the email and automatically begin that cycle of engagement with your business.
So go in your portal, copy the link and include it in every digital communication that you have as a business and that will immediately give you an entirely new email collection system. Or copy the QR code and put it in every print ad or every coupon - anything you print, include that QR code. For those of you who aren't familiar, on all of the iPhones now, when you open up the camera and you just point it at the QR code, it automatically brings up a link to that page on the phone for the customer.
So all you need to do is click and they're on your email entry screen just like that, they don't have to type in any URL. That's why these QR codes are so exciting. An android customer still downloads an app to be able to scan the QR code, but many customers are doing that and all of the iPhone cameras automatically will scan it. It's a really powerful way to turn anything that you're printing into a digital experience and capture that email to begin the process of engagement.
Another option for you is just go to your print material section in the Fanbank portal and there's a business card-size piece that you can print out and hand to everyone. There are flyers. There are posters. Everything you need to turn your staff, or yourself, or your customers into list building ambassadors of your business. Of course, all of those include the QR code and the link so that people can go straight from that physical piece of content into the digital world.
So just to touch on the last point is the big question of: should you pay to be able to generate a list and leads that can become sales for your business? The thing to pay attention to here is that most small businesses underestimate how much they can afford to pay to get a customer and, in the process, miss out on an incredible number of opportunities to smartly invest in building their customer base. So let's walk through an example.
So what you want to do in answering your question of: is a customer worth it to you? You want to understand your margin, you want to understand your average transaction, and your number of visits per year. Just guess at it to start.
If you take an average purchase of $50 and you have a $30 margin per purchase and customers visit four times a year, you're generating about $120 in margin. Now arguably, anytime you spend $120, you're in a break even mode to acquire that one customer. But a good rule of thumb is, you want to generate three times the amount that you're spending to acquire a customer. And so, most small business owners are really surprised to learn that that's $40 to acquire a new customer. Most small business owners are like “no way, I would never spend $40 to acquire a new customer.”
But in the process of coming to that conclusion, you're selling yourself short. If you really understood that that investment drives a customer and imagine walking up to a machine, you put a dollar into it and the machine gives you three dollars back, you would spend your entire day walking up to that machine, sticking a dollar in and taking the three dollars back. Well that's exactly what's happening. I think a lot of small businesses underestimate how much they can spend in acquiring a customer and are too timid as a result and if doing that mapping, really thinking about it and getting yourself comfortable and getting a little more aggressive, you might have a real pathway to grow your business.
Of course we've talked about the free options. We've talked about the tools you have as a Fanbank member or the strategy you should use if you're just visiting to be able to build that list; to understand the keys to success you have to break through the noise, you've got to make sure you're capturing an email on every single engagement and then you're following up with those customers. The Fanbank system is going to help you do that in a whole host of ways, but you've got to turn to yourself, your staff, customers, and really motivate yourself to get out there. Keep working on getting customers to hit your QR codes, join your contests, sweepstakes and different offers to be able to build that list and make those businesses, those consumers a permanent part of your business that you can control and you can reach out to.
That's what we wanted to cover with you today in this 15 minute breakthrough. Thank you for joining. If you have any suggestions for topics, if there's anything you want to know, never hesitate to reach out. We are on your side and look forward to continuing to build successful businesses across the United States every single day. Thanks so much everybody.
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