Eric Deeran breaks down client activation points: milestones that deliver value fast and lock in renewals and upsells. For a video service, that's a pre-production draft, shooting start, and final delivery. One client paying $10k once becomes $50k across three projects when you move them through these checkpoints quickly.
What's going on, guys? In this video we're going to be talking about client activation points and why that's important and why it's important to get your clients to your different activation points to make sure that you can maximize the lifetime value of the client. So without further ado, let's jump into it. So let's talk about client activation points and what that actually means. So what is a client activation point? And pull this up. So an activation point is essentially when your client hits a milestone to, that makes them more valuable to you as a business owner. And so activation points are typically different, like two to three things within your client journey that are gonna make them more valuable, that are gonna make them more likely to be happy with you, that are more likely to renew, get referrals and tell their friends. So if I'm providing, you know, social content or video services to a client, maybe the first activation point is that they get the pre production draft. So that's the first thing. And then maybe the second thing is that we actually start shooting the content and then the third thing becomes delivering the content and that's our third activation point. Now the reason these are important is because when you look at activation points, what happens is, is when somebody buys from you, this is money. There's something called time to first value ttfv. Now when someone buys from you, if they buy from you and then they get nothing for a very long period of time, they're gonna be upset with you as a customer. But what we wanna do is we wanna shorten that timeline from when they buy from you to when they get the time when they get the first value from you. And value would be something that's useful, right? So in this scenario, the first thing they would get from you that's valuable is gonna be the pre production draft in this example. And so we wanna figure out how quickly as far as time can we get them this pre production draft. And let's say that we can get them this within two weeks and then within the content we shoot for another two weeks from there and then delivering the content becomes a final four weeks. Now we want to shorten this time because the longer somebody has to wait to pay you, the more unhappy they're going to be, obviously. And so we want to focus on getting our clients from when they pay us to the first activation point, to the second activation point, to the third activation point. And the quicker we can do that, the happier the client is, the more likely they're gonna refer people to us, the more Likely they're gonna upsell. And because after this, what happens is we try to sell them on the next thing and that's renewing them. And now all of this is important because we're trying to maximize our LTV, which is lifetime value. If a client pays you 10k, but then they never buy anything from you again, their lifetime value or LTV is going to be 10k. But if somebody buys something from you for 10k and then they buy something again for another 20k and then they buy something again for another 20k, let's do my math here. Their total LTV is going to be 50k. But. But they're not going to buy this next thing until you deliver on the promise of the first thing and do a good job. And let's say that there's different activation points here, right? There's this one, this one, this one, there's three here. You have to work on getting them from step to step to step as quickly and efficiently as possible so they're happy. And then you have the right to upsell them into the next thing. And then you have more activation points in this offer, more activation points in this offer. And, and all this is important is because if you're competing, let's say that you're, you're trying to beat your competitors, but your competitor over here is the one with the LTV of 10k, but your LTV is 50k, then you're always going to win because you know if you can get a customer in here for 10k that you have a high likelihood of upselling them to the 20 and the 20K package after that, which maximizes your LTV. And this is important because you're going to win because you can spend more to acquire a customer on ads, if you're spending money on ads, or you can hire more people because you know that each client on average pays you about 50k over the lifetime that they're with you versus somebody who only pays you 10k. So hopefully that makes sense. And this is a little bit about time to first value activation points, why that's important. And I just wanted to make a quick little video on this cause I was on a coaching call and it came up and it was kind of top of mind, so hopefully this was helpful. Let me know if you have any questions in the comments below and I'll see you in the next video.
