Leveraging Customer Knowledge, Data, and List Segmentation Masterclass with Dan Kennedy

So broadly speaking, first leverage makes the difference between income and wealth. Simple example, one to one get customer make sale. That can give us income if we do a really great job with referrals, one equals five. And now we have the money from five sales, but the cost of only really getting the one customer in the first place, that means that at least theoretically we could take the profit from the other four and we could take it out of our business and, and we could invest it over here in order to create wealth. Now I'm being simplistic on purpose, right? 1 out of 10 upmanaged into spending a lot more money with us than is par than everybody else spends. We can theoretically take that extra money out and we can use it to buy wealth.

Hello and welcome to this month's masterclass. I'm Darcy Juarez, your host here with Dan Kennedy. And Dan, this month we're talking about leveraging customer knowledge data and list segmentation. Kind of a lot for us to go through. So let's start with kind of what kind of leverage is this all about?

So broadly speaking, first leverage makes the difference between income and wealth. Simple example, one to one get customer make sale. That can give us income if we do a really great job with referrals, one equals five. And now we have the money from five sales, say, but the cost of only really getting the one customer in the first place, that means that at least theoretically we could take the profit from the other four and we could take it out of our business and we could invest it over here in order to create wealth. Now I'm being simplistic on purpose, right? 1 out of 10 up managed into spending a lot more money with us than is par than everybody else spends. We can theoretically take that extra money out and we can use it to buy wealth. So leverage is where wealth comes from. And if you don't have leverage, about the only place the business owner finds wealth is at the end of the trail, accumulated and captive in his business on the day that he is able and willing to sell it, which is often disappointing by the way. So either by better customer management, better money math management, by taking what you have to do for yourself and selling it to others, which we talked about in another module like Bezos in the US the niche info business model. Well, I really figured out how to kick ass and take names with hardware stores. I might as well sell this to every other hardware store that's not in my area. See, that's leverage because you already you're doing taking the same work and you're getting multiple money out of it. Lead swaps from generating leads. I convert some, but in almost every business, you convert less than the total number, first of all. So who can I swap with thereby? If I swap with one person and we swap an even number, I've essentially cut my cost per lead by half, which means, theoretically, I could take that money and I could go put it over here in my investment portfolio. We were up to. We were on the air with the go by the inch infomercial for nine years. We started with no lead swaps. By the end, we were swapping our lead with eight other entities for their lead so we could stay on the air because the cost kept going up. But think about that. I'm generating the lead anyway, but I am now getting. So I got this lead. I'm now getting eight other entities to give me a lead for my one, I give you one, I get eight. Even if. Even if all those are only half as good as mine. Yeah, I got 4 to 1. Big leverage rolled out into national media, because national media always costs a lot less per eyeball than does local media. So anytime you can move from local media to national media, you have leverage. So from activity, we get income. From leverage, we get wealth.

So let's talk about the leverage least used or most misused by most business owners.

Well, it is customer knowledge. And I don't just mean customer data. I mean customer knowledge. The more I know about you, the more effectively I'm going to be able to sell to you and to sell to you at higher prices and higher margins and to keep you longer and all of that, because people really want more than transactions. People really want relationships. So the salesperson who is managing a. A certain number of accounts, they have an opportunity to be really good at this because they can keep accumulating customer knowledge by the customer. And so I can know what your hobby is. I can. Your kid went away for college this year for the first time. So four months from now, when I talk to you, I can ask you how Susie's doing at college. It gains me an enormous number of points. The first time that I was. That we had both President George Bush one, Georgia Bush one, and Barbara on the second time we had him on the ground. So George was on right before me. Barbara was on a little earlier in the day. And. And so I'm like getting in the tunnel at the same time George is. Because I want to remind him I'm mayor so he can finish on topic, you know. And so he says, how are your Books selling. Do you have any new book books out? And I answer him and he says, and how are the horses doing? Are they winning their share? And I answer, yeah, we met at the last event. He could. I mean, seriously. So I trot over and I asked Barbara, you know, what the deal is? And she says, we have a room of file cards. And George carries file cards with him. He has his whole life. And as soon as he meets somebody, he starts a 3 by 5 car. He tries to accumulate information about that person and put it on the 3 by 5 car. And anytime he's going somewhere, he tries to find out who's going to be there. And then he goes and sees if he has a 3 by 5 car and he refreshes his memory so that he can say two or three things that indicate he's actually been paying attention to who you are and what you say to him and what you do. Right. Because you got to understand, George's whole business, his whole life has been getting elected and raising money. That's what he uses this for. Even if, you know, it's a process, somebody gets points for it. But in many cases, you know, it's a process. Right, right. And it gets you a lot of points. So what the salesperson can do, automation really allows us to do on a bigger scale now if we will. So your customer database should be able to kick out everybody who's having a birthday this month. It should be able to kick out everybody who bought this type of product in the last six months. Right. And separate them from everybody else should be able to kick out the customers who only buy when there's a sale. So if you need money, you can create a sale just for those customers because that's the way they buy. Right. And really it can keep track of almost any information you tell it to keep track of. So if you get information about other kids going to college, that can go in there and it can tell you, okay, this month, here's everybody whose kid went away to college six months ago. There you go. Right. So the more you know, the better you can do. A great example is birthdays, which Rory fatigue.

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