It’s BORING, But It’ll 2x Your Business (fast)

Imagine two businesses, both doing $3 million a year. They've got the same number of customers, the same marketing spend, and the same product. 12 months later, one of them is twice as profitable as the other. And not because they found more customers. Not because they cut costs. They just figured out how to get the customers they already had to happily pay them a lot more. Here's the problem. Most business owners have no process for this, and so they leave enormous amounts of money sitting on the table year after year. Today, I'm gonna show you how to double your average customer value without adding a single new customer and without spending one extra dollar on marketing. It is boring, it's not sexy, and it might be the single highest leverage thing you do in your business this year. Let's get into it. In business, the single biggest expense you will ever have is acquiring a brand new customer. It's not payroll, it's not rent, it's not software. It's also the most risky. And yet, think about how you've mostly been trying to grow. More traffic, more ads, more sales reps, all with the goal of generating what? More customers. We're pouring more money into the most expensive activity in all of business while the customers you already have, the ones who already know you, who already like you, who already trust you, and who, if asked, would happily give you more money, just generally get ignored. And I realize this is obvious, right? The problem is we still don't do it, which is exactly the point of this video, and it's exactly what I want to fix right now. Because when you find a way to make more money without touching that acquisition line item, you're not just adding revenue, you're adding revenue with no acquisition costs attached to it, which means most of the cash you generate becomes just pure margin. And it doesn't stop there. You get to redeploy that extra cash into acquiring more customers, and customers who are now worth a lot more than they used to be. So it's not a one-time thing. It becomes this, like, beautiful flywheel where more profit per customer funds more acquisition of those customers. So more customers bring in more customers who are worth more customers, and it builds upon itself. So again, it's boring. It's not a new channel, it's not a new product line, it's not a new hire, it's not a new tactic. And that's exactly why it's worth 90 minutes of your team's time this week. And so by the end of this video, if you're gonna stick it out, and I hope that you do, you're gonna have 4 things. You're gonna have the exact questions to ask your team, the 3 levers that we use to design the offer itself, the scoring system that tells you which idea to build first, and how to launch it without spending a butt-ton of money on marketing. We call it the 10X for 10% Margin Maximizer, and the idea is simple. You build one premium offer priced at roughly 10 times your average order value. So let's say right now your average order value is $5,000. Well, let's come let's come up with a $50,000 offer. If it's $500, let's come up with a $5,000 offer. I know that might sound ridiculous at first, stick with me. But let's do the math, okay? If just 10% of your existing customers buy this 10X offer, that's going to double your average customer value. That's why we call it a 10X for 10% offer. Now, maybe it doesn't work out that way. Maybe you can't get 10% of your customers to buy this offer. What if just 5% buy it? Well, your average customer value is still up 50%. And if just 2% buy it, well, you know, 1 in 50, that's not bad. You've still grown your average customer value by 20%. Now, if 20% doesn't sound like much, consider this. McKinsey studied thousands of companies and found that just a 1% increase in price boosted operating profits by 8 to 12%. That was just a 1% increase in price. So directionally, what do you think's gonna happen when your effective revenue per customer goes up by 20%, 50%, heck, maybe even 100% with zero new customer acquisition costs attached to it? So that is the entire game. This new revenue carries no acquisition costs, which makes it some of your highest margin revenue. So here's how you build it step by step. Step 1, we're gonna run the 10X for 10% brainstorming meeting. Now what I want you to do is I want you to get your leadership team in a room for 90 minutes, okay? 90-minute meeting, let's get them in a room. What I like to do is actually like to get a big whiteboard. I like to give everybody in the room a pack of sticky notes sticky notes and I like to ask one question. What would it look like to build the ultimate version of what we do? Think about it the way that Disney Imagineers design a new ride at Disney World. If you don't know how Disney Imagineering works, they basically completely throw out the laws of physics. I mean, if they're gonna say, okay, you know, we want people to feel like they're on Mars. It's like, okay, well, step number 1 is we're gonna build a rocket and we're gonna fly people to Mars and we're gonna do this and they're they're truly going to cast off the laws of physics. They're going to say gravity doesn't exist, and they're going to just dream about what this magical, and at times even mythical experience would look like, and then they'll sort of start to pull back, you know, to reality. You can pour the concrete later. Right now we're dreaming on purpose. Now, if this still feels like you're too all over the place, there is a shortcut, because after doing this a lot of times, what we've discovered is that nearly every premium offer we've ever created pulls from the same 3 levers, and those levers are speed, automation, and access. So let's go through each one, and I'll give you examples so that you can start thinking about how you could apply each one of these levers to your own business. Step 2, we're gonna brainstorm using the 3 value levers. All right, so again, we're in the room, we've got the whiteboard, and what I wanna have is 3 columns, and one column is for speed, uh, the other is for automation, and the other is for access. And we're gonna start with lever 1, which is speed. And so I've got everybody in the room, they've all got their sticky notes, and I'm going to ask them, okay team, let's brainstorm what are all the ways that we can get our customer the result that we promise faster. That's the idea. I'm going to put 5 minutes on the clock and I want everybody just to brainstorm as many ways that we can get them the result faster in Disney Imagineering fashion. I recently purchased a new office desk and I bought it online and the seller that I bought it from wisely had a white glove offer and it did a couple of things. Number 1, it ensured that my desk was delivered in 2 weeks instead of the standard 8 to 12 weeks and this was not a cheap desk but I would have paid double to triple just to get this stupid desk in 2 weeks instead of 8 weeks. But included with this white glove service is instead of just dropping the stupid desk, at my front door, they were also going to bring it in, they were going to fully assemble it, they were going to take away all the packaging and stuff like that, and they were going to even haul off my old desk if I wanted them to, which I did. Now that white glove upgrade was approximately double the cost of the desk, but I would have happily paid that just to get the desk 2 weeks instead of 8, and I would have paid that again to have the thing assembled and to have my old desk hauled off. Why? Because speed, because I value my time and there's almost always someone like me in your database. The question that you've got to ask your team is how do we compress the time between the okay, I paid you and the okay, now when do I get what I paid for? All right, so hopefully you went through that exercise with your team. Again, everybody has their own pad of sticky notes, they're writing down ideas fast and furiously. I like to put 5 minutes on the clock and then I have people come up there and put their sticky notes in the speed column. So, once you've done that, now you can move on to lever 2 which is automation. Now, if speed is powerful and it is, ease is truly irresistible. If we can just do it for them, we got it. So, the question we're asking with lever 2 is how can we get them the result with less work, right? So before it was how can we get them the result faster, now we're asking how can we get them the result with less work. Now we had a client who sold a very specialized niche software product in the agricultural sector, um, and the product was great but it was apparently just a giant pain in the butt to implement, um, and this client had a kind of standard like $1,000 setup fee for a guided implementation, where they would essentially help a new client with the data migration that they would need to make this tool work. So they'd get them on board, they'd get on calls with their people and help them do it and stuff like that. But that was just all the friction. It was just still too much work, and clients weren't incredibly satisfied, and they were getting a fair amount of churn, and it was frankly the reason that just some people weren't even buying. Well, when they went through this exercise and the question was asked, how do we get them the result faster? They pinpointed if we could just do the migration for them, and they all decided it's really hard, it's a big pain in the butt. How much would we need to charge to do it the right way? Well, we need to charge about $10,000. And so they shifted instead of charging $1,000 setup to charging a $10,000 setup fee. Basically, $1,000 setup fee, do it yourself, $10,000 setup fee, we will do it for you. They thought nobody will take this. Well, not only did the majority of people take that and it massively increased their average client value, it also increased their conversion rates because there were a lot of clients who previously simply were not buying who now are like, okay, I'm in now that you're willing to just do that for me. It's important when you think about these offers, you're not just generating more revenue. I mean, you are. You're not just increasing your average customer value, you are, you're also appealing to a much higher segment, very often to a different segment of your market. Even the example before, now I gave that example as a speed example, but it is also an automation example because when you have an offer that crosses over, so it's both speed and it's automation, that's a sign that you have a winner. So when you're going through this exercise and somebody can't quite decide, oh, is this speed or is it access? And the answer is Yes, that's a good thing. So, the question to ask, how do we deliver the same result with less effort required from the customer? And if people get stuck, if everybody's kinda stuck, not sure what to do, the simplest way to get unstuck is to pause and to map the entire customer journey. So just say, okay, let's pause, let's go on a different whiteboard and let's get out the sticky notes and let's just map each step of the customer journey from the very, very, very beginning let's think about each and every step of the customer journey from the moment we start working with them, each and every step and stage, and let's just ask, where's their friction in this step? What about this step? And what would we need to charge to remove it? Because right now what you're doing is the best that you can do for what you're charging today, but if we completely remove that constraint, if we say we can charge whatever we need to charge to make the experience amazing and perfect, well, you might come up with some pretty cool ideas. All right, next up, lever 3, we have access. This is the 3rd major way that value is expressed. This is about being closer to the action, about being in the room where it happens, right? And some of your best customers, they don't just want the result faster and with less work, they want to feel like a VIP while they're getting it. So think about backstage passes at concerts or the Disney VIP experience, and this isn't just like a FastPass, this is This is where you actually have your own, you know, private guide and you get to go through the back door. You get to ride, you know, that Guardians of the Galaxy ride as many times as you want to do it. Now, that, by the way, costs about 8 to 10 times the price of a normal ticket. But if you're a celebrity or a high net worth individual and you don't want to wait in line, you don't want to have to fool with that, it's worth it. It's worth every penny. Single penny, not just because it's a better experience, but because it just feels kind of cool. Now, there are lots of ways that this can be applied in businesses. Certainly, if you're a brand that is a luxury brand, then you're going to have people who are going to want to have access to the best part of that. So, I mean, if you think about Hermès handbags, you know, for example, there are certain handbags that you can only get if you've bought other smaller, quote unquote, cheaper versions of the handbag. This is the case also for like Ferraris, right? There are certain Ferraris that you can only buy if you've bought other Ferraris. So this exists in luxury brands, so if you're there, you're probably already doing some variation of this. Certainly if you're an influencer brand, paying for some degree of access to you is very doable. But I'll tell you, this works for virtually any kind of brands. We had a client who owned a men's apparel brand. And he was able to double his average order value when he offered a personal shopper experience. So literally just, if you spend $2,000 or more over a 6-month period, you will have a personal shopper. This is somebody who you will have direct email access to, you know, and so if there's something that you want, you can ask them and they'll make sure they have it. We'll save items for you. When we get shipments in, we'll make sure that we pull your size so they don't get sold out. You'll just have your own person here that's basically your own internal customer support type person. And again, doubled his average order value, not just in people wanting to spend more to get that personal shopper experience. But once somebody had a personal shopper, guess what? The personal shopper was essentially just a salesperson, right? Another kind of fun example, my business partner Roland, he likes watches like, and he doesn't like cheap watches. He likes like really, really, really expensive watches. And I remember this one time we were in a store and he was trying to decide between these two watches. And one of the watches was really expensive and one of them was like really, really, really expensive. And he was leaning more towards the cheaper watch, which I get, 'cause they're both like really nice, but like this one was fine. Like it was nice. And I'll never forget when the associate informed him, you know, this one is great. If you do choose to go with this watch, the only way that we deliver this watch is by armored car. Car with 2 armed guards, and one of the armed guards will have a briefcase handcuffed to them at all times that contains your watch until you receive it and accept delivery. Now that's ridiculous, right? That's obviously ridiculous. There's obviously a lot of pomp and circumstance there, but that's the one that he bought, and that's the thing that sold it to him. It wasn't just a watch. It's an amazing watch, and I'm pretty sure he wound up selling the watch for a lot more than he paid for it, so it was a good investment. But at the end of the day, the thing that sold him wasn't the watch, it was the experience of receiving the watch and the story that he got to tell. So when we're thinking about access, don't just think about the end result. Think about the story that your client will tell other people about how they received the end result. What is it going to look like to give this small group of customers this level of access that no one else gets? What's the, the tiny little moment that you're going to allow them to have and then ultimately to be able to share. Because the beautiful thing is not only will people pay for this, but they'll tell others, and when they tell others, that's free marketing as well. So again, 5 minutes on the clock. Hey team, let's brainstorm. What access ideas do we have? Your customers are already telling you which lever they want: faster, easier, closer, Your job is just to build the version that's worth paying more for. Now, once you've got a list of ideas across all 3 of these levers, we're not going to build all of them. That would be impossible. That'd be ridiculous. We're going to need to score them first. All right, so step 3, we are going to ice score all of these ideas. So ideally, we have just a whiteboard filled with sticky notes of amazing ideas, and some of these ideas are going to be completely over the top. Ridiculous and absurd, and some of them are going to be doable but not that exciting, and hopefully some of them are kind of in the middle. So how do you figure out the ones that are, "Yeah, that's a good idea but impossible," from the ones that like, "Okay, we can do that." The answer is we're going to ICE score it. ICE scoring stands for impact, confidence, and ease. That's ICE. Impact, we're basically going to say, "What's the impact? What's the revenue potential if this works. Confidence, how sure are we that people will actually want this, that the market will actually respond to this? And ease, how quickly and easily can we pull this off? And when we're thinking about impact, for it to get a 10, we do wanna see that this is truly gonna be a 10x type thing, right? If it's just like a 5x, then maybe it's a 5 kinda thing. In terms of confidence, for it to be a 10, we wanna know that this is something that people have demanded. Like that we've sold some version of it in the past, and ease, you know, as we look around, this is something that we've done, we've got the capacity for it, those kinds of things. Now, this is understandably an arbitrary kind of thing, and so it really is the discussion that matters. If you're doing this as a group, I like the idea of I-scoring, everybody I-scoring kind of individually in private and then saying their score and then having a discussion, because the power is gonna be in the discussion and finding out why did this person say 4 and why did this person say 8. Now, the one rule that I follow is never score anything 7. Nobody's allowed to say a 7. 7 is a cop-out, okay? So, you want to make sure that when you are choosing numbers, you are forcing yourself and you're forcing your team to either pick a 6 or an 8. If you think about it, 6 is very, very different than 8. And so, that's kind of the only rule that I have because if you don't do it, everybody's going to pick 7 for everything and it's going to be generally unhelpful. If you kick 7 out, high-scoring actually becomes helpful. So we're going to go through this process and then we're going to pick the highest-scoring idea that your team can actually execute and go and build it. Once you built your 10x for 10% offer, step 4 is simply just to launch it but to kind of launch it quietly, right? The idea here is not to roll this thing out like it's some brand new product that you're launching to everybody because it's not for everybody. That's not what it is. This is intentionally a premium-priced thing that is only for the people that you already have. So you don't need countdown timers or fancy campaigns or announcement sequences. It shouldn't be a big lift in terms of marketing and promotional output, just like it doesn't require a heavy cost in terms of marketing spend and customer acquisition. It shouldn't be a heavy cost in terms of the assets that you need to create. It really should feel like an insider opportunity, right? And so you should be reaching out to your best customers individually. It should be framed as invitation only. You should genuinely only be able to deliver this level of service to only a handful of people. If this is the kind of thing that you can launch just broad to everybody, you probably did something wrong. Like there's probably something here where this is just smoke and mirrors, right? What makes it premium is the fact that it is in fact Limited. And I'll tell you, when even 2 to 10% of your customers wind up saying yes to this, I want you to go back and run the numbers, look at the math, because when your average customer value is up 60, 70, maybe even 100%, and you didn't have to spend another marketing dollar to get it, there's almost nothing else that you can do in your business that's going to make it healthier, more profitable, and that's going to generate the revenue that you need to scale than getting the customers that you already have to happily give you more money. And there's almost nothing you can do to do that than the process that we just walked through right here. Margins aren't made by cutting, they're made by creating. So, set aside the 90 minutes this week and ask your team the ultimate version question until you brainstorm at least a dozen speed, automation, and access ideas. Then score those ideas Build the winner, launch it internally, and watch how much easier everything else gets when every customer you have is worth more tomorrow than they are today. A premium offer is one margin lever. If you want the whole machine, the 3 systems that we use to take a business all the way to $20 million, I broke that down in this video right here. That is going to be your next step, so go check it out.