The next step in this funnel is remember we just talked about getting customers
and let's talk about keeping customers.
This is what I called the you-should-be-so-lucky-to-have-this-problem part of the funnel,
and that's how you grow the customers you have.
When you're thinking about growing customers, nothing magic.
You've now sold these customers way back here under purchased,
and you've kept them around with relative programs and product updates,
but really what you'd like to do, understanding now that it's a lot cheaper
to sell existing customers more stuff than it is to get new customers,
is let's go try to sell them some stuff, and how can we do that.
Well, the first thing you might want to think about is,
can I un-bundle some of the stuff in my startup that I tried to package all at once.
What are the mistakes that early stage ventures make that this new company is thinking
that you have to stick every possible feature in the product and sell it for the one price.
It might be possible once you understand more and more about your customers
to know that, you know what, most people just kind of want the base product
or you might have a freemium strategy which just says I'll give them the base product for free
but really understanding that what they're going to want some percentage is these other things.
Un-bundling is just a fancy word for saying--can I somehow decompose the product
into separate pieces, giving some for free or if you're lucky, charging for everyone of them.
I used to do this all the time to actually increase the average selling price by un-bundling the product.
And next thing to think about is can I up-sell the product.
A retailer in the United States called Sears had a line of tools
that they sold to people who made things and their product line always
had three types of products--good, better, and best.
And what they would try to get you to do is get you into the store
looking at the price of the good product but then when you got there, you said--
well, I deserve better and then someday I could aspire to the best.
And so that was kind of up-selling in the same product line
and in fact in the United States from the 1920s to the 1960s,
the master of up-selling was General Motors.
When they had separate brands, each had a fixed price point.
You started buying a car with a Chevrolet then you moved up to a Buick, then a Pontiac,
then an Oldsmobile, then eventually you could aspire to a Cadillac.
And these were all kind of up-selling based on aspirations
and the quality and features of the product increase as well.
You might want to think about creating an up-sell strategy.
Cross-sell, well that's also kind of simple.
Gee, if you're buying one product, are there any accessories
or companion products that you ought to just figure out to make sure
that you customers are aware of or on the pricing page or on a price list say--
Gee, when you buy this product, we'll give you a 20% discount off of this other one,
which most consumers would realize, ooh I'd like to have that too, and so thinking about
what adjacent products, what products next to the one you're already selling
customers can buy is a cross-selling strategy.
Finally, the last piece is referrals and that's another grow strategy.
And referrals basically generates this outer viral loop.
Remember what we were trying to do in the initial purchase
or get your new customers to start telling their friends about your products,
you want to do the same thing after you've had those customers for a while.
Maybe now you want to give them discounts on future purchases.
You want to say thank you for doing this, by the way, a $100 off or $5 off to the next purchase.
When you bring in the next new customers, banks now think that's a popular strategy,
and this referral program just helps your customers,
hopefully, who are satisfied sell more of your product for you.
And so that's get, keep, and now grow customers.
By the way, this grow funnel just like in get customers, there's nothing magic about cross-sell,
up-sell, and un-bundling, there might be other strategies
that your company and your startup might want to stick in to this funnel as well.
We put this up as kind of a canonical model because most companies
tend to use these types of techniques but it really depends
on what you're industry and product line is.