- When ya look at it, what we know is 20% of the people
will spend four times the money.
That's a rule.
That's based on the 80/20 principle originally, right.
That's where that first part comes.
That's why you wanna focus on getting
those higher quality clients.
That's the first reason why I tell my clients to spend
50 to 80% of their time on those 20% because we already know
that their capacity and ability to spend is a lot more.
So, we all know that customers are not equal.
Do we all understand that?
Do we agree, customers are not equal?
Well, most places we go, customers are treated equal.
So we know that customers are not equal,
but we all threat them equal, right.
So you gotta come up with your own
system or format not to treat them all equal.
And, I'm gonna show ya what we call a loyalty ladder.
Now this loyalty ladder was specifically originally
designed for retail, but it's very effective.
It can be used in other ways,
so I think it's just a good example to use from that point.
So, when we look at this, we have five rungs on this ladder.
If we start at the top, we have
what are called the raving fans, okay.
Raving fans, and everybody has 'em
and they just stumble upon 'em.
They don't know how they got them, you know.
They're the ones that always talk about your business.
They're referring you.
They're sending you emails and
ideas on how to improve your business.
You're getting 'em at night.
You're getting tweets, your getting texts, and everything.
These are just raving fans.
They just, they can't stop talking about the business.
They love it, you know.
So, most people will stumble upon a few of 'em.
The very smart business owners will actually come up
with a system to actually cultivate
them so that they have raving fans.
Now, the next level is you have what we call members, okay.
Members are just really long-term, loyal clients
that have been coming to you for years,
or doing business with you for years.
You may have different names for 'em.
Some people might call 'em, you know, my tribe,
or my family, or my group, or something or else.
The more important thing is not how you identify them,
it's how they identify themselves.
So it doesn't matter that I say, "Oh, that person is a
"member of the Vancouver Entrepreneurs Group."
So, what?
What's important is when someone else says, "Oh yeah, by the
way, I'm a member of the Vancouver Entrepreneurs Group,"
because they're identifying themselves
and saying, "I'm a member.
"I like this group.
"Come join this group."
That's the shift and differ.
You can call 'em whatever you want.
It's how they look at look at the
perspective in their own mind.
Now, you know, step number three is
on the left right now known as clients.
You know, they're a little bit more lukewarm, right.
They say, "Yeah, you know I've had a good experience.
"You know, I'm coming here, it's working."
But, they're willing to look somewhere else.
A Groupon coupon comes, whose the one
that jumps over somewhere else?
It's your clients.
It's not your members.
It's not your raving fans.
They don't even look at those things,
but when you get to these bottom three rungs,
especially the last two rungs, they'll jump somewhere else
because the reality is, they don't have enough loyalty,
or built in with you from that standpoint.
If you think from that way.
Then you have customers.
You know, if you look at customers, you know, they say,
"Yeah, you know it's okay.
"I may be back, I may be not."
They maybe come to your location once or twice.
They kind of like it.
They haven't made up their mind or anything else,
and you haven't done anything to try to move 'em up.
And then we know that the beginning prospect on this ladder
as was set up is you actually have prospects.
So, how do you move 'em up?
That's the big question, right?
Because you wanna come up with a
system when you're thinking about ...
Remember, we're talking about, how do you
get in front of the right 20%?
Okay, so when you look at this.
When you have prospects, okay.
Prospects you want to attract towards you.
So you can you use social media, you can use websites ...
You want to attract them.
You do not want to chase your prospects.
Don't do it, okay.
Just realize that's the filtering
process there for yourself.
Don't chase your prospects.
When you have customers, start working with 'em.
Try to build a relationship with 'em
and see if you can move 'em to the next level to client.
It comes back to that saying we said before.
People want to do business with who they like, know, trust.
Not every retailer, every business can always get the
respected level, but you're trying to get to that point.
That trust and respect.
When they trust and respect you,
they don't go anywhere else.
So, you know, Dan and I do some work
in the hair industry and everything else.
Do you know that the biggest thing that we see at times is
if a stylist can build trust and respect with a client,
that client will follow that stylist wherever they go.
How many people in this room say,
"Look, I only see this one person.
"I don't care if they move to Hope,
"I'm gonna drive out and see 'em."
How many of those in the room, right?
Okay, see, so what we got an example there is someone that's
built trust and respect with you.
You respect and trust 'em that
their the only people that can do the hair.
So you wanna try doing is start
moving 'em up to the level, right.
Now when you get up to members, you know.
When you get up to the level of members,
there's only gonna be a certain percentage of them,
and they're gonna become raving fans,
and people get frustrated at that level.
So, you gotta just filter 'em.
Some are never gonna become raving fans.
You can try to work on some of you they're ...
Raving fans are more natural.
You can give 'em a little few incentive to help 'em up
from that standpoint, but there's only so much
you can do to help them from that way.
So, that's the loyalty ladder itself there.
That's another filtering process out there,
to get you in front of the right people.
There's a lot of different ways that you can do it.