Chiro Mousetrap Breakdown Ep 243

Abstract
Summary Notes

Abstract

In this podcast episode, the host emphasizes the effectiveness of strategic marketing techniques in the professional services industry, particularly for chiropractors. The host, along with their guest Tim, discusses a successful campaign where a chiropractic clinic spent $200 on ads, resulting in 196 leads, 126 scheduled appointments, and 100 show-ups, leading to $9,000 in revenue before backend sales. The strategy involved offering a free body scan, typically valued at $260, while charging for the assessment, thus separating the free offer from the paid service. By requiring a card on file for a no-show fee, the clinic ensured a high turnout and pre-qualified customers willing to pay for additional services. The host underscores the importance of following best practices, leveraging funnels over lead ads, and conducting phone consultations to maximize availability and conversions. The episode concludes with a call to action to emulate the described 'mousetrap' approach for increased client success.

Summary Notes

Introduction to Business Strategy

  • Speaker A introduces the podcast's focus on customer acquisition, value maximization, and retention.
  • Lessons from past failures are promised as part of the content offering.
  • A positive and motivational tone is set for the audience.

"Now, here's what's interesting about this, and I'm going to try and point out the nuggets and the wrinkles of what small tweaks make this thing super successful."

This quote sets the stage for the discussion, indicating that small strategic adjustments can significantly impact business success.

The "Cairo Mousetrap" Case Study

  • Speaker A aims to dissect a successful campaign, referred to as the "Cairo mousetrap," relevant to medical and professional services.
  • The campaign's success metrics are highlighted: $200 ad spend, 196 leads, 126 scheduled appointments, and 100 shows.
  • A high conversion rate is emphasized, with 51% of leads showing up.
  • The campaign also generated $9,000 upfront before additional sales.

"So the offer that generated this was off one $200 of ad spend. They generated 196 leads through a funnel, and they got 126 to show."

This quote provides specific figures on the campaign's performance, demonstrating a high lead-to-show conversion rate, which is crucial for the campaign's success.

The Offer Strategy

  • The offer includes a free body scan, marketed as a more appealing alternative to a standard assessment.
  • The value of the scan is quantified ($260) to enhance perceived value.
  • A funnel, not lead ads, is used to capture potential clients.
  • The strategy includes separating the cost of the scan from the consultation fee.

"One is, instead of saying an assessment, which everyone's saying, right, they said it was free to get this type of scan, right?"

This quote emphasizes the importance of differentiating an offer from competitors to increase appeal and perceived value.

Appointment Scheduling and Positioning

  • The scheduling process is integrated with a value proposition over the phone.
  • The scan is marketed as free, but the first visit incurs a $130 charge, with a card required on file.
  • A no-show fee is introduced to ensure commitment.
  • The campaign successfully converted 64% of attendees to pay for the first appointment.

"And so when they get on the phone, they would position the offer saying, listen, this is normally a $260 scan. We'll do it absolutely free."

This quote explains how the offer is positioned to potential clients, highlighting the free scan's value and the cost-saving opportunity.

Financial Implications and Conversion Success

  • The campaign's financial success is underscored with substantial upfront revenue.
  • The backend sales potential is mentioned but not detailed in the provided transcript.
  • A high conversion rate of attendees to paying clients is noted as a key success factor.

"Now, they were able to sell 64 out of 100 people that showed up on the phone call for this $130 1st appointment."

This quote indicates a successful conversion strategy, with a majority of attendees committing to a paid appointment after the initial free offer.

Value Perception and Pricing Strategy

  • The free scan was separated from the first assessment to create a perception of added value.
  • The scan was positioned as a $260 value given away for free, enhancing its perceived worth.
  • Customers were not charged the $130 immediately but were required to provide credit card details for a no-show fee.
  • The strategy guarantees a minimum sale of $130 for every appointment made.

"Second, they positioned the scan as a $260 thing that was given away for free so there's more value."

This quote emphasizes the strategic positioning of the scan as a high-value service that is being offered without cost, which in turn increases its perceived value to the customer.

"Your first appointment is $130. And when you get here and you do it, we'll charge you. Then we just need your card for a no show fee, which is $50."

This quote outlines the pricing mechanism where the customer is informed about the cost of the service ($130) and the no-show fee ($50), but payment is deferred, creating a sense of commitment with a lower upfront cost.

Sales and Revenue Generation

  • The initial consult was priced at $130, which is higher than typical low-cost introductory offers.
  • This pricing strategy resulted in $9,000 in revenue before any additional sales or long-term customer value was considered.
  • The approach demonstrates that higher initial pricing can lead to significant upfront revenue.

"Now from those 64 people that they closed, they closed them on the $130 1st consult. So this isn't a $19 1st consult. This isn't a $29 1st consult. This is $130 1st consult all right."

The quote clarifies that the initial consultation was set at a premium price point, distinguishing it from lower-priced alternatives and contributing to a substantial immediate revenue.

Best Practices and Strategy Execution

  • Tim, new to the chiropractic space, succeeded by following established best practices without preconceived notions.
  • He opted for phone calls over direct in-person appointments for greater availability and lead conversion.
  • The funnel used resulted in a 51% lead-to-show rate, which outperformed typical rates of 10-15%.
  • Following the playbook and established strategies is crucial for success and improving client outcomes.

"Follow the playbook. All right, and so I want to outline this for you, because some of you are trying to figure out a way to make more money for your customers, or you should be with the mousetrap."

This quote suggests that adhering to proven strategies ("the playbook") is key to generating more revenue for clients and improving business success.

Separation of Services and the Concept of 'Free'

  • Separating the free offering from chargeable services can enhance the perceived value of both.
  • Offering a scan for free while charging for the assessment leverages the psychological impact of 'free' as a stronger incentive than discounts.
  • The distinction between the scan and the professional assessment adds value to the paid service.

"Free is stronger than discount, but separate it from the other service that there was being rendered."

The quote highlights the psychological advantage of offering something for free over providing a discount and the importance of separating this free offer from other paid services to maximize perceived value.

"A scan is one thing, the assessment is another. And so they gave the scan away for free, but charged for the assessment of the scan."

This quote illustrates the strategic separation of services where the scan is offered at no cost, but the professional assessment of the scan is charged, thus creating two distinct value propositions for the customer.

Pre-Qualification of Potential Customers

  • Pre-qualifying customers can increase the likelihood of selling higher-priced packages.
  • Chiropractors can benefit by weeding out customers who are not willing to pay for premium services before in-person consultations.
  • Using phone consults and maximizing front desk availability can lead to a high show rate for appointments.

"And you make that argument for a chiropractor. It's like, listen, someone's not willing to pay $130. They're not going to buy a $2,000 package for me."

This quote highlights the strategy of pre-qualifying customers to ensure they are willing to invest in higher-priced services, thus optimizing the time of the chiropractor.

Efficient Use of Advertising and Scheduling

  • Effective scheduling and advertising can result in a high percentage of appointment shows.
  • A strategic approach to scheduling, such as phone consults, can make appointments more convenient for potential clients.

"So, like 84% show something insane, right. Because it was convenient and the times worked for them, and they were scheduling."

This quote illustrates the success rate of the scheduling strategy, emphasizing the importance of convenience for clients.

Cross-Promotion and Additional Offers

  • Layering additional offers can increase revenue from initial ad spend.
  • Even with a moderate success rate, the financial returns can be substantial when upselling to higher-priced packages.

"And so if you want to build a mousetrap like this, think about the other offers that you can layer into this, because they were already able to make off one $200."

The quote suggests considering additional offers to maximize profit from initial marketing efforts.

Marketing and Sales Funnel Efficiency

  • A well-structured marketing and sales funnel can dramatically increase the return on investment (ROI) for advertising.
  • The funnel should include compelling benefits and an opt-in that requires some level of qualification from potential leads.

"And so then all of a sudden, all in, they paid you ten. They paid Facebook 1200. So they're eleven two, and they made, conservatively, 50 grand."

This quote demonstrates the potential profitability of an efficient marketing and sales funnel, highlighting the significant ROI achieved.

Importance of Optimization in Marketing

  • Funnels and web pages are effective tools, but they require skill and optimization to work properly.
  • Marketers need to focus on creating better offers, copy, and benefits to resonate with the target audience.

"Of course they work. You need to get better at it. You need to optimize. You need to make a better offer. You need to make better copy. You need to make more compelling benefits that are going to resonate with that person."

The quote emphasizes the necessity of improving marketing skills and optimizing strategies to ensure the effectiveness of digital marketing tools like funnels and web pages.

Importance of Detail in Business Operations

  • Attention to detail can significantly impact the effectiveness of business operations.
  • Small adjustments may be crucial for the success of a strategy or system, such as a "mousetrap."

a way. Sometimes you have to split some little details out that can make the whole mousetrap work.

This quote emphasizes the importance of focusing on small details that can be pivotal for the overall functionality of a business strategy or system.

Strategies for Professional Services Appointment Booking

  • Availability dictates the type of appointment selection for professional services like physical therapists, dentists, and chiropractors.
  • Full availability for walk-ins is preferred, but if not possible, alternative methods must be used.
  • Performance partners must be listened to, as their suggestions are crucial for the business's success.
  • Businesses must be willing to make necessary changes or face losing potential customers.

For many of you, the thing that's going to dictate what type of appointment you are selecting is the availability of the type of appointment.

This quote highlights how the availability of different types of appointments influences the decision-making process in professional services.

Pre-Qualifying Customers

  • Separating the irresistible offer from the charge pre-qualifies customers.
  • Ensuring each customer is worth a certain amount before any service is provided increases revenue.
  • Implementing a no-show fee with card details ensures commitment and value from the start.

And then every single person who comes in the door they already know is worth 100, 100 and $5200.

The quote refers to the strategy of ensuring that every customer represents a predetermined value to the business as soon as they walk in, which enhances profitability.

Sales Strategy and Value Proposition

  • The sales strategy involves not charging upfront but requiring a card to secure the appointment.
  • Presenting the service as a discounted offer from a higher original price creates a perception of value.
  • The initial consult leads to a secondary sale where treatment plans or session packages are sold.

I'm not going to charge you right now. I just need a card for a no show. And when you show up, it's going to be $130. If you don't show, it's $50, right?

This quote describes the sales tactic used to secure a customer's commitment without immediate payment, which also introduces a penalty for no-shows to ensure they value the appointment.

The Mousetrap Strategy

  • The "mousetrap" refers to the overall strategy for securing and monetizing customer appointments.
  • It involves using a funnel for scheduling, separating free offers from purchases, and avoiding hard sales.
  • The strategy focuses on providing value upfront and securing future sales through pre-set prices.

Anyways, that was the mousetrap and that was the little tweak that he did.

The quote summarizes the strategy used to attract and convert customers, which is likened to a well-designed mousetrap due to its effectiveness.

Recommendations and Conclusion

  • If performance metrics such as lead show rates are below expectations, modeling successful processes is recommended.
  • The speaker encourages reaching out to a person named Tim for those needing assistance with their processes.
  • The speaker concludes with well-wishes and a sign-off.

If your numbers are not at 50% of leads showing, then I would suggest that you model the process that he did.

This quote advises listeners to emulate successful strategies if their current performance is lacking, suggesting that modeling can lead to improved outcomes.

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