On this episode of Rhodes to Success I interview Tom Schwab who is the leader of the e-commerce Hub Spot user group and knows how to build and online business with an inbound strategy. Tom led the growth of Goodbye Crutches, a direct to patient private pay e-commerce business from a regional player to national leader in fewer than three years.
Main Questions Asked
- How did Goodbye Crutches come to be?
- What was the journey from Goodbye Crutches to inbound marketing?
- What is inbound marketing?
- What do you have to say about the relationship that inbound marketing has with content marketing?
- Why is it so important that your marketing focus on the customers pain points?
- What do you say to a business owner who is not taking care of a pain point but is offering something that makes life more pleasurable?
- Talk about your strategy to boost the lifetime value of a customer.
- How is your company helping e-commerce do more customer nurturing?
- How do you go from being self-employed to having a salable business?
Key Lessons Learned
- Inbound marketing is permission-based marketing. You are basically asking, “How can I be helpful to people who have a question and make it so I’m the thought leader there to answer?”
- The difference between permission-based marketing and content marketing is life, “Fishing for Sharks and only using Chum.” Sure, it will attract them but how do you get them on the hook?
- Inbound marketing is about listening to the customer and figuring out the tests to improve so you can give the customer more content.
The Decision Process
- 70% of the buying decision is made before you contact the company (research via asking friends, referrals, Google etc.)
- A person will go through the entire sales process and be attracted by great content and offers.
Inbound Marketing vs Content Marketing
- Inbound marketing is a strategy and content marketing is a piece of that strategy.
- You need content in order to communicate with people (blog, videos, podcast) but still need the engine behind it.
- Social media is there to amplify your blogs, testimonials, responding to Tweets and LinkedIn.
- The ‘real’ customer feedback not found in a survey or comment but via looking through your analytics and seeing what people actually do on your site. They may say they love your e-mails but are they actually opening them and driving sales?
- When you are a guest on a podcast that is the content.
- Every piece of content should have a purpose so you need to always have a call to action at the end.
- If you are on a podcast just to be there then that is content marketing. However, if you drive the audience to a sale then that is an inbound strategy.
Focusing on Pain Points
- Nobody wants your product or service they just want the relief or solution.
- If you only focus on the product you won’t connect with the customer.
- You need to identify the ideal buyer persona (the person you want to serve) including the demographics, psychographics. Basically you want to know who they are and what they need from you.
- Even a pleasure point is a pain point (how can I spend more quality time etc.)
- Always focus on the reasons not the product.
- The challenge is making the customer feel the pain point so their urgency to buy.
The Lifetime Value of a Customer and Boosting Sales
- It has never been easier to make a dollar online but it has also never been harder to make a profit.
- The profit of any company comes with the lifetime value and the brand.
- Starbucks sells coffee for $4 a cup but the lifetime value of the average customer is around $40K.
- Getting a customer is just the first step. What can you do to nurture the relationship so they continue to buy and become brand advocates?
- You need to focus on the lifetime value.
- It’s much easier to keep a customer and raise the value of them than it is to get a new customer.
From Self-employment to Salable Business
- Put systems in place to allow you to do things without trading dollars for time.
- Remember, content is king and context is God.
- Ask, “What could I take that I currently do that I can package together and put a price on and give as an easy download?”
- Figure out how you can monetize long term and offer things like downloads, courses, and checklists.
- Making these changes will take you from a self-employed hourly worker to running a business.
The music in today’s episode was written by The Danger Os and produced by Nick Palmer. Check them out at https://www.facebook.com/thedangerosmakemusic
Links to Resources Mentioned
Inbound Movement (Interview Connections offer)
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