Having an Exceptional Customer Service (w Billy Rickman) Pt. 2 Apr ‘19 Ep 465



In a candid discussion on the Billy Rickman podcast, Alex Hormozi shares his unorthodox strategies for business growth, emphasizing the importance of crafting irresistible offers and reversing the traditional sales model. He advises against mirroring failing businesses and stresses the need for exceptional customer experiences and sales skills. Hormozi introduces the concept of 'client finance acquisition'—selling high-value services upfront to cover costs and offering discounts later—as a key driver for his success in scaling businesses. He also highlights the significance of understanding and leveraging business metrics, like attrition, average ticket, and lifetime value, for sustained growth. Hormozi's approach challenges conventional wisdom, urging entrepreneurs to be creative with their offers and to break free from industry norms to achieve profitability.

Summary Notes

Introduction to the Podcast Episode

  • Mosey Nation introduces the second part of the Billy Rickman podcast focused on customer experience and selling high-value items.
  • The discussion references the time before significant business milestones.
  • The aim is to share insights on attracting more customers, increasing customer value, and retaining them, alongside lessons from past failures.

Welcome back to part two of the Billy Rickman podcast, where we talk about getting big in business. This part of the podcast, or this half of the podcast is about having an exceptional customer experience and how to blend that in a way to sell more expensive stuff over time.

This quote sets the stage for the podcast episode, highlighting the main topics to be discussed: customer experience and strategies for selling higher-priced products or services.

Pricing Strategy in Business

  • Mosey Nation critiques the common approach of new businesses adopting the pricing model of existing businesses without considering their financial health.
  • He challenges the wisdom of copying pricing strategies from businesses that may not be financially successful.

But the secret that no one knows is that everyone else is broke. So why the fuck would you copy them?

The quote emphasizes the flawed logic behind adopting pricing strategies from other businesses without understanding their financial situation, suggesting that such businesses may not be the best models to emulate.

Business Growth Strategies

  • Mosey Nation discusses the overarching strategy for business growth, including customer acquisition, value maximization, and retention.
  • He shares that the podcast will cover various experiences and lessons learned in the process of growing a business.

Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way.

This quote outlines the core areas of focus for the podcast episode: acquiring customers, increasing customer value, and retaining customers, while acknowledging the learning process involved in business growth.

Business Philosophy and Brand Personality

  • Billy Rickman notes a shift in Mosey Nation's content towards a more fun and lighthearted approach to business.
  • He inquires whether this change is a deliberate effort or a natural aspect of Mosey Nation's personality.

Is that something like, it's just a part of you, or is that something you tried to now move into to remind yourself? Is it like a conscious thought?

Billy Rickman's question addresses the intention behind the noticeable change in Mosey Nation's business content, wondering if it's an innate characteristic or a strategic choice.

Stress Management and Work Culture

  • Mosey Nation acknowledges the potential for stress in life and business but chooses to focus on humor and light-heartedness.
  • He shares personal anecdotes to illustrate his approach to maintaining a positive atmosphere.

I think that life can be stressful enough as is. We could all be stressed if we choose to.

This quote reflects Mosey Nation's philosophy on stress management, suggesting that while stress is a common factor in life, one can choose to focus on the lighter aspects instead.

The Five Steps of the Customer Journey

  • Mosey Nation outlines the five steps of the customer journey: lead generation, lead nurture, sales, fulfillment, and resell and ascension.
  • He discusses the importance of these steps in customer acquisition and retention.
  • He mentions that HR and finance may be included for larger businesses but are not the primary concern for most small business owners.

Lead gen, lead nurture. Sales fulfillment, and then resell and ascension. And depending on the size of the business, you could also include HR and finance.

This quote summarizes the critical stages of the customer journey that businesses should focus on to grow and maintain their client base.

Client Finance Acquisition Strategy

  • Mosey Nation introduces the concept of client finance acquisition, a strategy he used to grow his gyms and businesses.
  • He advocates for selling higher-priced offerings upfront when customer excitement is at its peak, to cover onboarding costs and provide an exceptional experience.

Client finance acquisition is how I grew my gyms. It's how I grew gym lunch. It's how we did all of them so fast.

The quote explains the concept of client finance acquisition, which played a significant role in the rapid growth of Mosey Nation's businesses, emphasizing the importance of initial customer excitement in selling high-value services or products.

Upselling Strategy: "Downsell the Upsell"

  • Mosey Nation discusses a counterintuitive sales strategy he calls "downsell the upsell."
  • The strategy involves offering customers more of the product or service they just enjoyed at a discounted rate, which increases the likelihood of them staying on.
  • This approach contrasts with asking customers to pay more after initially receiving a lot for little or no cost, which is less effective.

"And so most people, in my opinion, have it backwards. And so I got a decent amount of credit for saying downsell the upsell. I don't think I'm the one who invented it, but I don't. But it works well, because what happens is you're like, hey, do you want to have more of what you've just got for half price?"

This quote explains the essence of the "downsell the upsell" strategy, highlighting that it's more successful than the traditional upselling method.

Cost Recovery and Reinvestment in Advertising

  • Mosey Nation illustrates how to recover costs and profit from advertising investments using a numerical example.
  • He explains the sequence from spending on ads to acquiring leads, scheduling, show rates, and final purchases.
  • The example shows that by the fourth day, sales from the first two days begin to cover the initial ad spend, which allows for reinvestment in the campaign.

"Right. It's a negative acquisition cost. And so now I'm making money getting new customers, and so there's really no reason to stop until you have another bottleneck."

The quote emphasizes that once the advertising costs are covered by sales, acquiring new customers effectively becomes free, leading to a cycle of reinvestment and growth.

Operational Bottlenecks After Successful Customer Acquisition

  • Mosey Nation points out that after mastering customer acquisition, the next challenge businesses face is usually operational.
  • He notes that many entrepreneurs lack management and leadership skills, leading to operational inefficiencies.
  • These bottlenecks can reveal the weaknesses of a business, such as poor customer retention due to inadequate operations.

"Usually it becomes operations, because most people don't have the skill set to lead, don't have the skill set to manage. They're entrepreneurs. They're not organized, blah, blah, blah. And so that becomes the next bottleneck."

This quote highlights that after solving the issue of customer acquisition, businesses often struggle with managing their operations effectively.

Importance of Customer Experience and Process Improvement

  • Mosey Nation criticizes businesses that fail to recognize the importance of customer experience and process improvement.
  • He suggests implementing processes such as reach out, handwritten cards, and wow packages to enhance customer experience.
  • The discussion points to a common misconception among businesses that their offerings are better than they actually are.

"And so then they're like, oh, my God. I have all these people coming in, and no one's staying. It's like, right, your shit sucks. That's why you didn't have people to begin with."

This quote conveys the idea that a surge in customer acquisition can expose the poor quality of a business's operations and offerings, leading to customer churn.

The Myth of Unique Customer Service

  • Billy Rickman and Mosey Nation discuss the overused claim of unique customer service as a selling point.
  • They reference a quote by Jeff Bezos about customers' perpetual dissatisfaction and relate it to the unrealistic expectations businesses have about their customer service.
  • The conversation highlights the need for businesses to identify true points of differentiation beyond basic customer service expectations.

"Your customer service is probably just the expected level of customer service."

Billy Rickman's quote underscores the notion that what many businesses consider to be exceptional customer service is often just the standard expected by customers.

Additional Resources for Listeners

  • Mosey Nation invites listeners to check out his YouTube channel for a video version of the podcast, which includes more effects, visuals, and graphs to enhance understanding.
  • He suggests that the video content might engage different learning centers in the brain.

"If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, drawn out stuff, sometimes it can help hit the brain centers in different ways."

This quote offers listeners an alternative way to engage with the content, potentially catering to different learning preferences.

Revisiting Customer Acquisition

  • Billy Rickman expresses interest in revisiting the topic of customer acquisition.
  • He acknowledges that listeners may find the idea of flipping the traditional acquisition model to be compelling and would like to understand more about how to implement it.

"I want to go back a little bit if I can, just to the acquisition, though, because I know a lot of people who were just listening to that would be like, that's awesome, Alex. I totally understand. Let's flip it. Let's get them on the high value first, and then we can deliver a reduced price later."

Billy Rickman's quote indicates a desire to delve deeper into the customer acquisition strategy discussed by Mosey Nation, recognizing its potential value to listeners.

Sales and Making an Amazing Offer

  • Sales are crucial for convincing customers to make high-value purchases.
  • An amazing offer is one that customers would feel foolish to refuse.
  • The business model should support the offer with systems and processes that ensure customer satisfaction and retention.
  • A strong offer can enable anyone to sell effectively.
  • Guarantees can increase customer satisfaction with the experience.
  • Positioning and closing techniques can be used to enhance perceived value and secure higher-priced appointments.

"Straight off the bat, right? One word is sales. I'm just being like, super real with you because I think the biggest thing that is underestimated and underappreciated is making an amazing offer, right?"

This quote emphasizes the importance of sales and the power of an irresistible offer in securing high-value purchases from customers.

"But it's something that I've really kept, is like, if you have to be an amazing salesman to make the business work, the business is broken."

Mosey Nation suggests that a business should not solely rely on sales skills; instead, it should have a strong offer backed by a solid business model.

"And so the way to make any person be able to sell is to give an offer that's amazing and then let the business model and the systems and processes back up. Why it's so great."

The quote highlights the strategy of creating a compelling offer that's easy to sell, supported by the business's systems and processes that validate the offer's value.

Positioning and Assumed Closing Techniques

  • Positioning involves creating a perception of high demand and exclusivity for the service provider.
  • Assumed closing is a sales technique where the salesperson proceeds as if the customer has already decided to make a purchase.
  • These techniques can be used to secure appointments and upsell services.

"I would be doing two step stuff, which is I'd be closing $100 appointments. Like, pay $100 just to meet with this person because she's so amazing."

Mosey Nation discusses using positioning to create an aura of exclusivity around a service provider, justifying a higher upfront cost for appointments.

"And then I would go in and just have an assumed close for, like, two grand for extensions and whatever. That's the angle I would take."

The quote describes using the assumed closing technique to secure larger sales after establishing the value and exclusivity of the service.

Creative Offers and Ancillary Services

  • Creative offers involve providing a primary service for free or at a low cost and monetizing other related services.
  • Ancillary services are additional services that can be sold alongside the primary offer.
  • This strategy can attract customers and generate revenue from the additional services.

"So an example would be, there's, like, a weight loss clinic that I know I'm not sharing names because they're whatever, but they would run free weight loss."

Mosey Nation provides an example of a weight loss clinic using a creative offer to attract customers by offering a primary service for free.

"And so what would happen is they would come in and they're like, we'll continue. I mean, it was like, $5 a week, something, nothing, right? And as long as you continue to buy food from us or buy bars from us or whatever, then you're good to go where the margin would be anyway, right?"

The quote explains how the clinic monetizes the offer by selling food and bars, which is where the profit margin lies, despite the primary service being free or low-cost.

Splinter Stack and Value Perception

  • A splinter stack is an offer that breaks down services into components and presents them as bonuses.
  • Competing on best value is ineffective if customers do not understand what is included.
  • Clearly naming and stacking bonuses can create a perception of added value and make offers more attractive.

"What else do you sell? You know what I mean? What else is this person who has a bad back coming in with, they probably have pain because they're overweight."

Mosey Nation encourages thinking about what additional services or products customers might need based on their primary reason for visiting, such as a chiropractor considering the needs of a patient with back pain.

"But instead you should peel off each of these things and then name them as, like, bonuses for this thing. So you could have, like, I'll crack your back and as a bonus, you're going to get this and this and this and this and this."

The quote suggests that breaking down the services and labeling them as bonuses can enhance the perceived value of the offer, making it more compelling for customers.

Value Creation in Offers

  • Discusses the importance of being creative in making offers.
  • Emphasizes that finding the right offer can be pivotal for business success.

ng shitloads of value when it was stuff you were going to do anyways, right? Yeah. How can we be creative in how we're making offers? You find the right offer and you're golden.

This quote suggests that providing significant value through offers, especially on actions already planned, can be beneficial. Creativity in crafting these offers is crucial, and the right offer can greatly contribute to success.

Breaking Industry Limiting Beliefs

  • Addresses the challenge of overcoming limiting beliefs within an industry.
  • Recognizes the skepticism around new marketing strategies and the tendency to dismiss them as irrelevant to one's own industry.
  • Highlights the need for industry disruption and the adoption of effective marketing and sales strategies, regardless of technical expertise.

Lastly on that point, it's one of my challenges I'm trying to work through anyway with my clients and certainly in the industry as a whole.

Billy Rickman is discussing the challenge of changing the mindset of clients and the broader industry regarding marketing strategies.

And I think I've heard a lot of you talking about the same thing is about breaking the limiting beliefs around this particular topic about like, no, that doesn't work in the industry.

Billy Rickman emphasizes the common issue of industry professionals believing certain marketing tactics won't work for them, indicating a need to break these limiting beliefs.

Disrupting Marketing Patterns

  • Talks about the tendency of businesses to follow traditional marketing approaches without innovation.
  • Critiques the ineffective marketing strategies that lead businesses to incorrectly conclude that marketing doesn't work.
  • Encourages disruption of established patterns to create more effective marketing strategies.

But I really love what you're doing because you're disrupting patterns and disrupting what people's beliefs are around marketing and offers.

Billy Rickman praises Mosey Nation for challenging the status quo and changing perceptions about what constitutes effective marketing and promotional strategies.

Marketing Effectiveness

  • Asserts that marketing is universally effective if there are people to see it.
  • Discusses the misconception that marketing does not work based on limited or ineffective attempts.
  • Stresses the importance of understanding and utilizing marketing beyond superficial efforts.

Yeah, I mean, if there's eyeballs, marketing works, period.

Mosey Nation makes a definitive statement that marketing is effective as long as there is an audience to receive it.

I had a chiropractor here and he's like, yeah, I tried Facebook ads. They don't work. I was like, yeah, it's like, I tried marketing. It doesn't work. I'm like, what? I tried marketing. I don't even know what that means.

Mosey Nation recounts an anecdote to illustrate the flawed reasoning of someone who has dismissed the entire concept of marketing based on a singular, possibly flawed attempt.

The Pitfalls of Imitation in Pricing

  • Discusses the flawed logic of setting prices based on what others are charging, especially when those others may not be financially successful.
  • Highlights the reality that many businesses are struggling financially and that emulating their strategies is not advisable.
  • Stresses the need for businesses to critically evaluate their pricing and business strategies rather than blindly copying others.

But the secret that no one knows is that everyone else is broke. So why the fuck would you copy them, right?

Mosey Nation points out the illogical nature of following the pricing strategies of other businesses that may not be financially sound.

The Cycle of Stagnation

  • Describes the common situation where businesses are barely surviving and constantly seeking a turning point that never comes.
  • Emphasizes the futility of expecting different results without changing actions or beliefs.

And every day they wonder why they're still going to work.

Mosey Nation talks about the daily struggle of business owners who are not seeing progress but continue to work under the same conditions.

They still think, like, by doing the same thing, they're going to get a different result tomorrow, right?

Mosey Nation discusses the mistaken belief that repeating the same actions will eventually yield different results, highlighting a lack of strategic change.

Key Business Growth Strategies

  • Suggests three primary strategies for business growth: acquiring more clients, increasing prices, and encouraging repeat purchases.
  • Advises on the importance of knowing key business metrics to improve them.
  • Stresses that without understanding these metrics, it's challenging to provide specific advice for improvement.

Yeah, three things. Well, get more clients, increase your prices, and get people to buy more times.

Mosey Nation summarizes the three fundamental actions business owners should focus on to grow their business.

So if you don't know what your attrition is, can't improve it. If you don't know what your average ticket is, can't improve it. If you don't know what your lifetime value is, can't improve it.

Mosey Nation emphasizes the necessity of understanding business metrics as a prerequisite to improving them and subsequently growing the business.

Universal Relevance of Business Principles

  • Acknowledges the universal applicability of the discussed principles to various types of businesses.
  • Suggests that the insights shared, although derived from the gym industry, are relevant to all brick-and-mortar businesses.

And I know you're super busy, and for you to take the time out with me this morning, well, in the afternoon view there is a huge honor. And I'm just super stoked. I know a lot of people, like you said, even though we spoke about gym stuff, a lot of the information you said today is just brick and mortar. Business, small business, growth, marketing, sales, it's all the same stuff, right?

Billy Rickman expresses gratitude for the discussion and acknowledges the broader relevance of the strategies discussed by Mosey Nation, extending beyond the gym industry to all small businesses and brick-and-mortar establishments.

What others are sharing

Go To Library

Want to Deciphr in private?
- It's completely free

Deciphr Now
Footer background
Crossed lines icon
Crossed lines icon
Crossed lines icon
Crossed lines icon
Crossed lines icon
Crossed lines icon
Crossed lines icon

© 2024 Deciphr

Terms and ConditionsPrivacy Policy