I Made $6 Million in 60 Days to Show It’s Not Luck (Part 2) | Spotify Video Exclusive
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What is the problem-solution cycle in business?
I own 13 portfolio companies and in one of them I unlocked $6 million of enterprise value in 60 days by solving three problems and I did it with data. So this is actually a sequel video and you may remember our three wise men. They came and they were sad because they had problems that they wanted to fix. and they're already making twice as much money just from the fixes that we did from the sales. So we went from 56 units per month sold to 93 units again in 60 days. And so the problem that we encountered after we doubled the sales, now they had twice as many people going to get fulfilled on whatever the thing is that they sold. What was once shaky had completely been obliterated because it was already tough when they had the current amount, but with double, they were completely lost.
So one of the never-ending issues in business is that there's something called the problem-solution cycle. It works like this. You've got problems, you've got solutions.
How can maximizing customer value drive business growth?
That's ugly as shit. Anyways, so the problem is when you solve a problem with a solution, you then create another problem.
What strategies can revolutionize customer onboarding?
So if I 10X your sales, what's the next problem going to be? And so we had to fix that problem now. We wanted to track these three stats because they didn't even have LTV tracked. The first was time to first value.
How can CRM and customer KPI tracking improve business performance?
The second was customer satisfaction. And then we had our ascension rates or the absolute amount of money that they were making on the back end, which is after someone buys the first thing, they buy the second thing. So let's start with where they were at. And by the way, this E is not something fancy.
What is the importance of creating a profitable backend model?
It just should be there, but y'all are cool, so we'll go with it. All right, time to first value is a really interesting statistic. It's probably one of the ones that I care the most about in any kind of service. So in the world of content, like watching TV, there's different shows that you might watch.
How can tracking customer satisfaction enhance retention?
So each show, they calculate an actual retention point. And so Breaking Bad, for example, is one of the best shows of all time. They found that if someone made it to the third episode, they had like an 87% likelihood of finishing the entire five seasons if they got to that point. And so different shows have a different retention point that hooks the viewer for the long haul. And so that's what we're ultimately driving towards. You can call it a retention point.
What metrics should businesses focus on to increase enterprise value?
You can call it activation. You can call it whatever you want. But there's a key moment that transforms the customer relationship into a long-term commitment with you. And what your goal is to pull that as far forward to the present as you possibly can. You don't have to deliver the ultimate result immediately. I mean, the faster you can do that, the better.
What lessons can be learned from the journey to $6 million in enterprise value?
But what you want to do is break it into many small chunks and show leading indicators of success. So in other words, progress. And the more times that you can break down an outcome into tinier chunks, the more reinforced the customer will be for staying with you. So for example, if I was in a high touch agency, so I did marketing services for someone. And let's say we touch base once every two weeks. Now, I do a lot of things between those two weeks for the customer, but if every two weeks I correspond with them, then they're gonna get reinforced every two weeks for me doing stuff. Now, consider a different way of doing it. I onboard them, and then every day I send them what I did to work on their behalf.
At the end of that two weeks, they would have had 14 different positive interactions with me versus one. You can take what you're currently doing, not change much about it, and simply communicate it differently so that they can perceive a faster time to first value. That's the idea here. For example, in the gym launch world, in the beginning it was if we can get someone to do a high ticket sale in the first seven days, it would triple the LTV for us. So then instead of trying to think about churn or any of these metrics, we said, let's just try and make sure every single person gets that sale as fast as possible.
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Chapters
8 chapters
1
What is the problem-solution cycle in business?
0:00–0:45
2
How can maximizing customer value drive business growth?
0:45–0:51
3
What strategies can revolutionize customer onboarding?
0:51–1:01
4
How can CRM and customer KPI tracking improve business performance?
1:01–1:14
5
What is the importance of creating a profitable backend model?
1:14–1:30
6
How can tracking customer satisfaction enhance retention?
1:30–1:53
7
What metrics should businesses focus on to increase enterprise value?
1:53–2:09
8
What lessons can be learned from the journey to $6 million in enterprise value?
2:09–24:18