Facebook Group Updates: Insights, Scheduled Posts and More

Facebook is rolling out new features for Group admins that will aid in the management of members and content.

As I type this, I don’t yet have most of these features. TechCrunch wrote a terrific recap of these updates, and the images below come from that article.

Let’s take a closer look at what you can expect, and how you might take advantage of these updates…

Group Insights

One primary complaint from Facebook group admins has been the lack of any access to metrics regarding the activity of members. Third party tools have sprung up to fill this void in the meantime, but Facebook now provides a native solution.

Facebook Group Insights (TechCrunch)
(Image from TechCrunch)

Group Insights will give admins access to real-time metrics around growth and post engagement. Thanks to the screen grabs above, we see examples of the specific information that will be available:

New Members: How many new members have been added in the past 28 days, and what is the percentage of growth?

Posts, Comments and Reactions: Total number of posts, comments and reactions, and how that compares to the prior period. You can select from multiple time periods.

Popular Times: A graph charting activity level by time of day and day of the week. This can help determine the best time to post content or host group events.

Top Posts: A collection of the posts that received the most likes, comments and views during the selected time period. Learn from what made those posts successful.

Top Contributors: A ranking of the membership who contributed the most posts and comments during the past 28 days. This could be an opportunity to recognize, honor, or give back to those who contribute most.

Age and Gender: A breakdown of your membership by gender. This could potentially influence how you market, run ad targeting, and communicate.

This may only be a sampling of the Insights that will be available, based on the screen grabs from TechCrunch. Facebook has provided few details.

Membership Request Filtering

Facebook Membership Request Filtering (TechCrunch)
(Image from TechCrunch)

This feature could be particularly useful for closed groups that get a high volume of requests to join. Filter pending members by gender and location (though it’s not clear if there is any other filtering available). You can then bulk accept or decline based on that filter.

TechCrunch notes that the danger of this filtering is that admins could exclude people they should not. However, I doubt most admins will be using this to bulk accept/deny without looking more closely. If I had the feature, I may use it to prioritize my membership request workflow.

Of course, that may not cut down on the work of an admin. It’s not nearly as valuable as the screening questionnaire that allows admins to ask questions of those requesting access (we use this for PHC – Elite!).

Removed Member Clean-up

Facebook Removed Member Clean-up (TechCrunch)
(Image from TechCrunch)

Trolls can be a problem, and group admins can now quickly and easily delete all history related to a removed member. Admins can now easily do the following:

  • Delete all of that member’s posts from the past seven days
  • Delete all of that member’s comments from the past seven days
  • Delete any pending members invited by that member during the past seven days
  • Block that member so that they won’t be able to find, see or join the group again

It’s not clear if admins will be able to clean up in bulk beyond this seven day period, but it’s a start.

Scheduled Posts

Facebook Group Scheduled Posts (TechCrunch)
(Image from TechCrunch)

A small thing. And really, why in the world wasn’t this available before? But the absense of this feature in the past has been frustrating and annoying. As a result, the addition of this “small thing” is actually kind of a big deal.

Group admins will be able to schedule posts for a specific day and time just like they can for pages. This becomes additionally useful now that we have metrics from Group Insights indicating the times of day members are most active.

This is a huge deal for me. My private communities are successful because of the peer-to-peer sharing, not because I’m in there every minute of the day. However, I do wish I could have a larger presense there, even if it’s to simply share more.

I read a lot, and I share what I learn by scheduling to Twitter. Now I can grab some of the most important posts and schedule them via my relevant groups.

Group to Group Linking

Facebook Group to Group Linking (TechCrunch)
(Image from TechCrunch)

Admins can link related groups that they manage. This allows them to surface and recommend that related group to members, making it more likely that members of one group join another. Facebook says that this is just the beginning of their attempts to bring communities and sub-communities together.

This particular feature will be great for free, open groups. It won’t be particularly useful for my premium groups as it will only create confusion when a member attempts to join a related group that they aren’t currently paying for.

Your Turn

I’m looking forward to getting my hands on these features. Do you have them yet? What do you think?

Let me know in the comments below!

The post Facebook Group Updates: Insights, Scheduled Posts and More appeared first on Jon Loomer Digital.

Facebook Group Updates: Insights, Scheduled Posts and More
Source: Great Facebook Feeds From Around The Web

How to Find Customer Lifetime Value

Last week, I told you about a new way to target Facebook users similar to your most valuable customers with Value-Based Lookalike Audiences. In order to take advantage of this feature, you need to upload a complete customer list with a column for each customer’s lifetime value.

So the question ultimately arises: How do you find customer lifetime value?

To create such a file, you either need to be able to easily generate a report of lifetime value by customer or do so manually with the help of spreadsheet formula magic.

Let’s walk through both methods…

Find Customer Lifetime Value in Infusionsoft

I use Infusionsoft, so I’ll focus here.

I’m not an Infusionsoft expert, but I’ve fumbled through it for about four years. After poking around contact filters unsuccessfully, I reached out to Infusionsoft support and was directed to a very easy solution.

Select “Reports” under “E-Commerce” in the main Infusionsoft menu…

Infusionsoft Reports

Within the main templates, you’ll see a link for “Customer Lifetime Value Report.” You’ll want to click that.

Customer Lifetime Value Report

Under “Search Criteria,” you may want to set a minimum total purchased or paid of $1.00. I’d also recommend filtering to only include those purchases where no refund was issued.

Customer Lifetime Value Report

Select the columns that you want to appear in the report.

Customer Lifetime Value Report

Make sure that you include the following information:

  • First Name
  • Last Name
  • Email
  • Phone 1
  • City
  • State
  • Postal Code
  • Country
  • Total Paid

You can include other columns as well (like additional email addresses and phone numbers) if you collect it. This will help with your match rate when creating the Custom Audience.

Check the top checkbox to select everyone within your report and then click the “Actions” drop-down and select “Export.”

Customer Lifetime Value Report

You’ll again want to select the columns of data that you want in your exported report.

Customer Lifetime Value Report

We can now use this file to generate a Value-Based Lookalike Audience. We’ll get to that in a minute.

Find Customer Lifetime Value Manually

One issue that I have is that not all purchases have gone through Infusionsoft. I’ve also had purchases go directly through Stripe without the Infusionsoft integration.

As far as I can tell, Stripe doesn’t provide a simple report of customer lifetime value. But I can create one manually. Whether you use Stripe or something else, you should be able to do something similar as I do below.

Within “Payments,” I filtered to only include successful payments that were neither refunded nor disputed.

Customer Lifetime Value Report

I then click to export the report.

Customer Lifetime Value Report

This will be a full report of all purchases that have been made. You’ll first want to clean up your report to only include the data we isolated earlier when generating it in Infusionsoft. You won’t have a column for total paid either. We’ll need to find that.

Now we’ll need to aggregate all purchases made by the same customer. We’ll do that with an Excel formula to add up all purchases made under the same email address.

Sort by email address so that all purchases for the same email address are together.

Customer Lifetime Value Report

Let’s assume that the customer email address is in Column A and the product purchase price is in Column I. We add Total Purchase Price in Column J.

Assuming a header row, place the following formula in the J2 cell…

=IF(A2=A1,””,SUMIFS(I:I,A:A,A2))

Customer Lifetime Value Report

In other words, if the email address in this row is the same as the one in the row above, leave this cell blank. Otherwise, add up all values in Column I for this email address.

All rows with a blank cell in Column J won’t be needed. But first, we’ll need to copy Column J…

Customer Lifetime Value Report

Then paste “special”…

Customer Lifetime Value Report

You’ll paste values only back into Column J to remove the formula while keeping the values.

Customer Lifetime Value Report

If you don’t do this, the cell values will change when you remove blank rows.

Next sort by Column J to separate out the blank cells that won’t be needed.

NOTE: I realize there is probably an easier way to do this. I’ve been an Excel hack for many years and find my own — probably complicated — solutions to problems.

Customer Lifetime Value Report

Select all rows that consist of a blank cell in the J column and delete those rows.

Customer Lifetime Value Report

You will now have a clean file of customer lifetime values.

Create a Value-Based Lookalike Audience

Reminder: The Facebook advertising purpose for this is to create a Lookalike Audience where Facebook analyzes the lifetime values of your customers to find other users similar to those who are most valuable.

All of the details are provided in last week’s blog post, but since I now have this feature (and I didn’t when I wrote last week’s post), I’ll walk through it again here.

Before creating a Lookalike Audience, we’ll need to create a Custom Audience to be the source. We’re creating a Customer File Custom Audience.

Value-Based Lookalike Audience

Select “Customer file with lifetime value.”

Value-Based Lookalike Audience

Upload the file that we created earlier.

Value-Based Lookalike Audience

Map data by selecting what each column represents that you want to upload.

Value-Based Lookalike Audience

Once Facebook is done uploading that data, click the “Create Lookalike” button.

Value-Based Lookalike Audience

Select the country or countries that you want use as well as the size of the Lookalike Audience that will be generated. I tend to select the top 13 countries that represent my customers and focus on the top 1%.

Value-Based Lookalike Audience

It will take a few minutes to generate. Once the audience is ready, you can use it for targeting!

Your Turn

Since this is a new feature for me, I have only begun to test. Facebook recommends using this audience for bottom of the funnel targeting (product sales). I am going to experiment with it across multiple objectives.

Have you started using this feature yet? What results are you seeing?

Let me know in the comments below!

The post How to Find Customer Lifetime Value appeared first on Jon Loomer Digital.

How to Find Customer Lifetime Value
Source: Great Facebook Feeds From Around The Web

Facebook Ads: Create a Value-Based Lookalike Audience

One of the primary struggles for new advertisers with a small audience is uncovering the most effective groups of people to target. Facebook is providing yet another tool for advertisers with the addition of the value-based Lookalike Audience.

As I type this, Lifetime Value (LTV) Custom Audiences and value-based Lookalike Audiences are available to select advertisers. Help Center pages dedicated to these features (here and here) are evidence that this is more than a test, but a new roll-out.

Let’s take a closer look at what Lifetime Value Custom Audiences and value-based Lookalike Audiences are, how to create them, and how you might use them.

NOTE: I don’t yet have this feature, so the screen grabs I provide below are from Nick Platt and David Herrmann, members of my Power Hitters Club – Elite community.

Lifetime Value (LTV) Custom Audiences

Customer lifetime value is the net profit you’ll earn from a single customer over the lifetime of your relationship.

Value-Based Lookalike Audience Facebook

Your customers aren’t all created equal. Even when uploading a list of customers who purchased a particular product, context is being obscured. Some customers are more valuable than others due to their lifetime value.

Some customers make a single purchase. Some come back again and again and again, ready to give you a credit card. It’s important to provide Facebook with lifetime value to help find other potential customers like them.

We’ll get to the details of how to create this in a bit, but understand that the Lifetime Value Custom Audience isn’t a new audience for you to target. It simply provides another column of data for an audience of your customers that you should already have.

The star of this update is the value-based Lookalike Audience that you can now create based on this.

Value-Based Lookalike Audience

The first step will be to provide Facebook with a lifetime value for all customers within a data Custom Audience. You should not focus only on the most valuable customers, but provide a comprehensive list to help differentiate the most valuable from the least valuable.

You will then be able to create a value-based Lookalike Audience. This allows Facebook to focus on those who provide the most value when finding others across Facebook with similar characteristics.

The end goal is to create a cold audience that is most likely to lead to positive results.

Create LTV Audiences

When creating a Custom Audience, select “Customer File.”

Value-Based Lookalike Audience Facebook

If you have this feature, you’ll then see an option for “Customer file with lifetime value (LTV).”

Value-Based Lookalike Audience Facebook

After selecting that, you’ll get what is similar to the typical process for creating a data Custom Audience off of your customer file.

Value-Based Lookalike Audience Facebook

You’ll notice a couple of differences.

First, you’ll need to “include a column with a range of customer values.”

Second, you’ll see a final step to create a Lookalike Audience. So the entire purpose of this, once again, is to create that Lookalike.

A few tips from Facebook…

1. Use dollar values only. Don’t include ratings or rankings, for example. You should be assigning a dollar value for each customer.

2. Include a full range of customers, from low to high value. This allows Facebook to be able to “hone in on what might distinguish an average customer from a great one.”

3. Don’t use negative values to signify undesirable customers. Facebook won’t count those.

4. Make sure you’re using the same currency throughout. Facebook will assume you are using the same currency otherwise.

5. Decimals for cents, but no other punctuation.

This file should include as much customer data as possible that can be matched to a Facebook user. There are 15 identifiers (including first name, last name, email address, and phone number) that can be used to increase your match rate.

Your file may look like this…

Value-Based Lookalike Audience Facebook

Notice the final column is for “value.”

Calculating Lifetime Value

This whole process assumes you know how to calculate lifetime value of your customers. This is most likely a manual process. And as I consider this for my own audience, it’s not all that easy to execute.

When in doubt, keep it simple. When generating your customer file, add columns for products purchased and price of that purchase. Use a formula to add up the values of those purchases.

This may be easier for some CRM software than others.

Create a Value-Based Lookalike Audience

Now that Facebook has a customer list including values, you will be able to generate a Lookalike Audience of those similar to your most valuable customers. You’ll need to select the country for each audience you create.

At this moment, I don’t have a screen grab for this process. However, I assume it’s no different than creating a Lookalike Audience off of any other source.

How to Use Value-Based Lookalike Audineces

Facebook recommends that you use this audience for lower funnel targeting. For example, use it for promoting a product instead of promoting a blog post or opt-in.

Facebook also says that your cost per result may be higher than usual initially, but that you should focus on the overall return on ad spend. Since Facebook is generating an audience of people most likely to have a high lifetime value, your focus shouldn’t be primarily on a single action.

This is all theory, of course, that needs to be proven in real life. And how we use a feature isn’t always as it’s intended.

My recommendation: Experiment. Try it for promoting content. Try it for promoting opt-ins. Try it for promoting products. You may or may not get great initial results. But you won’t know until you try.

But Facebook’s point concerning return on ad spend (ROAS) is a good one. If the focus of creating these audiences is on lifetime value, we should look beyond the initial action and monitor what these people do over the course of days, weeks, or months.

Future of Lifetime Value Audiences?

When I first heard about this, I assumed it would be based on the Facebook pixel. I’m surprised that the process is entirely manual, forcing advertisers to calculate and upload customer value.

It’s somewhat surprising that this is necessary. Facebook knows who hits a conversion page. They have the capability to assign a lifetime — or at least long-term — value of a single customer over days, weeks, months, or years.

The limitation could be “lifetime.” They can ditch website data after six months for Website Custom Audiences, so they may not have access to more than that at this time. Requiring more could be a storage issue (though I’m certainly no tech person).

Regardless, come on… This could easily be simplified for the advertiser who has routinely used Custom Conversions and events.

Your Turn

Do you have value-based Lookalike Audiences? How are you using them, and what types of results are you seeing? If you don’t have them, how might you use them?

Let me know in the comments below!

The post Facebook Ads: Create a Value-Based Lookalike Audience appeared first on Jon Loomer Digital.

Facebook Ads: Create a Value-Based Lookalike Audience
Source: Great Facebook Feeds From Around The Web

Geography and the Problem with Facebook Ads Optimization

If you’ve been reading these pages for long, you know that my Facebook advertising strategy is focused on targeting those who are closest to me. I decided to take myself outside of this comfort zone recently, and it led me to a better understanding of a major problem with Facebook ads optimization.

Let’s take a closer look at that experiment and how I used current data to solve the problem…

The Experiment

I run 15 Facebook ad campaigns for each stage of the funnel:

  1. Traffic
  2. List Building
  3. Sales

Up until recently, I mostly avoided interest and Lookalike Audience targeting, even at the top of the funnel.

I could do this because I have a large audience of people who visit my website. The success rate when targeting this group of people provides little motivation to expand beyond it.

But if I would use such “cold” audiences, it would be at the top of the funnel. In theory, I could spend more to target people who don’t (but possibly should) know me with helpful content, slowly bringing them through to eventually register and buy.

One place in particular where this could be helpful was when promoting my content for entrepreneurs. I don’t have as large of an audience on that topic as I do for Facebook ads. So I could spend more money while targeting interests to introduce these people to my content. And if successful, I may even try to go straight for an opt-in.

With the help of Audience Insights, I isolated a group of entrepreneurship interests to target when promoting a blog post that may appeal to that group. To help uncover which would be most effective for my audience, I broke them into separate ad sets.

  • 4-Hour Workweek interest
  • Gary Vaynerchuk interest
  • Marie Forleo interest
  • Tim Ferriss interest
  • Other “general” entrepreneurship interests

The Results

It didn’t take long to find a clear top performer. Following are the costs per link click for each ad set (remember that my goal with this campaign was driving traffic):

  • 4-Hour Workweek interest: $.25
  • Gary Vaynerchuk interest: $.06
  • Marie Forleo interest: $.16
  • Tim Ferriss interest: $.31
  • Other “general” entrepreneurship interests: $.14

Those Gary Vaynerchuk results were insane. The cost was even better than what it costs me when targeting people who visit my website and read an entrepreneur post (tends to be between $.10 – $.20).

Maybe I struck gold here. Maybe there’s something to this audience. So I also targeted this interest when promoting a free video series for entrepreneurs with a Facebook lead ad.

The results were startling. I quickly got 593 leads at $.29 per lead.

That cost was so good that it was half of the cost I am getting when targeting my readers of entrepreneur posts ($.58) — and that cost is pretty freaking good, too.

This discovery shook me and everything that I thought I knew about Facebook advertising.

Too Good to Be True?

A part of me knew to be skeptical from the start. This doesn’t make sense. But another part of me wanted so badly for it to be true that I tried to ignore it.

Finally, I dug deeper. Something just isn’t right here. Could these results be too good to be true?

The one thing that I wanted to check was geography. Where are the people from who are registering for this video series? Is it consistent with the geography of those who visit my website, subscribe, and ultimately buy?

The short answer: Uh oh…

Using the Breakdown feature within Facebook ad reports, I was able to uncover where these registrations were coming from.

Here’s a look at the top 12 countries:

Facebook Ad Results by Country

There are four countries in particular that are missing from this list. I typically see high volume of traffic from the United States, United Kingdom, Canada, and Australia. So, how many registrations are from those countries?

  • United States: 0
  • United Kingdom: 0
  • Canada: 0
  • Australia: 0

Not a single registration from those countries. But it’s not because the people in these countries weren’t converting. Facebook wasn’t even trying.

The highest spend for these four countries came from the United States, at a grand total of $.21. Not a particularly solid sample size.

This was alarming, to say the least. This also coincided with a higher volume of spam to these ads than is typical. Way higher.

Typically, I would have greater faith in conversion results. However, we’re dealing with Facebook lead ads here, and one weakness of that ad unit is that it’s insanely easy to convert.

However, I also don’t like to be too presumptuous regarding where my customers may come from. I decided to dig deeper to uncover where people are from who visit my website, register for something, and buy a product.

Maybe more people from these countries are buying from me than I think. It’s possible that this is a time to re-think everything.

Who Is Visiting My Website?

By far, the largest chunk of my traffic comes from the United States, at 30.1%. Here are the only countries that represent at least 4% of my website traffic:

  • United States: 30.1%
  • United Kingdom: 7.6%
  • India: 6.2%
  • Australia: 4.1%
  • Canada: 4.1%

At this point, the inclusion of India in my conversion results isn’t completely crazy, but the exclusion of the other four countries certainly would be a head-scratcher.

Who is On My Email List?

It’s also possible that the composition of those who visit my website and are on my email list is different. So let’s take a closer look at that, too.

Interestingly enough, the composition of email subscribers isn’t much different…

  • United States: 31%
  • India: 8%
  • United Kingdom: 6%
  • Australia: 5%
  • Canada: 4%

I can’t help but think that this campaign also padded these numbers a tad for India.

Who Are My Customers?

The end goal is to get sales, after all. So I want to see if I’m wasting my time with people from particular countries who subscribe to free content.

Here are the only countries representing at least 4% of my sales:

  • United States: 52.9%
  • Australia: 9.0%
  • United Kingdom: 8.9%
  • Canada: 5.7%

My audience from the United States is far more likely to buy from me. Interesting.

But what happened to India? Registrants from India make up 8% of my email list. Yet, only 1.2% of purchases is composed of customers from this country.

If you’re curious about the other countries that represented registrations for that test ad set, here you go:

  • Nigeria: 0.1%
  • Pakistan: 0.1%
  • Philippines: 0.1%
  • Malaysia: 0.8%
  • Bangladesh: 0.0%
  • Indonesia: 0.5%
  • Egypt: 0.1%
  • Morocco: 0.1%
  • Ghana: 0.0%
  • Kenya: 0.0%
  • Nepal: 0.0%

The 12 countries that made up 74% of my registrations for this ad set make up a total of 3% of my sales.

Of the countries above, India is the only one that represents a reasonable amount of traffic. But even in that case, those who visit from India are far less likely to purchase.

Here’s a comparison of purchase to visit ratios for India, along with the other top traffic countries:

  • Australia: .10 purchase vs. visit ratio
  • United States: .09
  • United Kingdom: .06
  • Canada: .06
  • India: .01

In other words, a visitor from Australia is 10X more likely to purchase than a visitor from India. Even in the case of Canada and the United Kingdom, that rate is 6X higher.

The Problem With Facebook Ads Optimization

Facebook’s goal when optimizing for leads is to get the most leads for the lowest price.

Facebook Lead Ads Optimization

Quality is not part of the algorithm. Only cost and volume.

This may be less of an issue for a conversion that results in a sale. The value of those conversions is much more clear and obvious.

This may also be less of a factor when remarketing. Assuming, of course, that the bulk of your traffic and email list isn’t built on an audience that resulted from a campaign like this one, your results should be more controlled.

SIDE NOTE: All the more reason to focus primarily on remarketing if you can.

But when targeting interests and lookalike audiences, in particular, Facebook will naturally focus on clicks (when optimizing for traffic) and leads (when optimizing for leads) for the lowest cost. And those lowest cost leads and clicks, for me, come from countries that do not typically lead to sales.

How to Fix This

The fix should be quite obvious: We need to filter using countries that tend to be most productive for our business.

For me, it’s the four countries mentioned earlier (United States, United Kingdom, Canada, and Australia). However, I’ve also added countries that have a .05 purchase-to-visit ratio while also providing decent volume.

I updated my ad sets to only include these countries. The results, as you can imagine, are quite different.

The cost per website click for the ad set promoting a blog post to the Gary Vaynerchuk audience went up from $.06 to $.32. Obviously, not nearly as effective — and a cost that wouldn’t be worthwhile for me.

The cost per lead for that same audience increased from $.29 to $1.79. While that rate is significantly higher than targeting my website visitors, it’s at least within the right ballpark to watch it for a while longer.

Your Turn

This experiment provides a couple of primary lessons:

1) Be skeptical of results that appear to be too good to be true. Dig deeper.

2) Don’t assume anything. Research customer composition to better understand your results.

Anything you’d add here?

Let me know in the comments below!

The post Geography and the Problem with Facebook Ads Optimization appeared first on Jon Loomer Digital.

Geography and the Problem with Facebook Ads Optimization
Source: Great Facebook Feeds From Around The Web

Entrepreneurs: Stop Wasting Time on Misfits

[NOTE: This post continues a series exploring the topic of entrepreneurship. While my focus has and will continue to be on Facebook ads, I have plenty to share about what I’ve learned while building my business.]

In the early days of my business, I did all I could to please each customer and potential customer.

Is my product too expensive? Here’s a discount code.

You want ongoing updates to this product without paying more? You’ve got it.

You’re unhappy with my product? I’ll spend several emails trying to make it right for you.

If you do this, stop. Please, stop.

By trying to please everyone, you’re wasting your time on “misfits.” This time could be spent serving your ideal audience.

Let’s take a closer look at the types of customers and potential customers who are misfits — sucking away your time, value, and money.

The Skeptical Shopper

Sometimes a potential customer’s first exposure to my business is via a product landing page. They’ve never read my content before. They haven’t attended a webinar. They don’t listen to my podcast.

They’re skeptical.

This tends to happen when a friend or co-worker recommends someone to my products. Or they run a search and my product comes up.

Most frequently, this will happen when considering to book a one-on-one call with me. I’ll get emails like this…

I’m considering booking a one-on-one call with you. The $497 price for only 45 minutes is really high. What kind of experience do you have to command these prices? Will it be worth my time?

In the past, I’d write up a long response trying to convince this person that I’m “worth it.” I’ve figured out over time that this is a bad approach.

My ideal customer is someone who doesn’t need to be convinced of my value. They’ve read my blog posts before — hopefully many times. They’ve attended my webinars.

The bottom line is that these people already know what to expect from me. They understand and agree with my approach. There won’t be any surprises.

Those who don’t know me are more likely to be disappointed. Had they been a reader of my blog, they may know sooner that my style and approach aren’t a good fit for them.

So when I get an email like this, I tend to send a response along these lines…

Thanks so much for considering a one-on-one. If you set up a session, I want to be sure you’re satisfied. I’ve found that those who are most likely to be satisfied are those who already read my content and understand my approach. If there’s any doubt about whether you should set up a call, my recommendation is to hold off.

I’ve seen it before. I convince someone to set up the call. It’s not what they expected. I’m not what they expected. They’re disappointed. Suddenly, we have to go through the process of determining whether to refund.

I just wasted my time, and I feel like crap along the way. No more.

My sales funnel is most effective when those looking to pay for something are loyal, long-time readers. They are much less likely to ask for a refund, and they are most likely to have a long lifespan as a member.

The Bargain Shopper

I get this kind of email often…

I love what you’re doing, and I’m a loyal reader. I know I need to sign up for your training program. I’m just getting my business started, and I have a very tight budget. There’s no way that I can afford the $297 right now. Any chance I can get it for $97?

Look, I feel for this person. I’ve been there. But for my business, it’s best to hold strong.

By offering a discount, I’m watering down the value for those who paid full price. And those who paid full price have reason to be upset when a discount is this easy to get.

Additionally, what ultimately happens is that those who require a discount take more administrative attention than those who don’t. More work for less money.

My response is usually something like this…

Thanks so much for being a regular reader of my content! Unfortunately, there aren’t any discounts available at this time. My recommendation would be to wait until your budget increases. I never want you to buy something you can’t afford. In the meantime, there’s plenty of free content to consume. Have you checked out my free webinar?

It’s the truth. I want you to be happy with your purchase. I don’t want you to pay for something you can’t afford. There’s plenty you can access for free in the meantime.

There’s a way to both stick to your regular price and keep those on a tight budget happy. Those on a tight budget will appreciate it, and they’ll be more likely to be a loyal customer later.

It’s possible that offering discounts makes sense for you. Do what works for your business. But it doesn’t make sense for me (with a few exceptions).

The Square Peg

You’ve heard the old saying, “A square peg in a round hole?” Yeah. As business owners, there’s temptation to try and make it work. Stop it.

Sometimes I’ll get an email like this…

I’m a regular reader, and I’ve heard about your Power Hitters Club – Elite community. It sounds amazing, but I’m just a beginner and I’m just starting. While I can afford the membership without a problem, but will it be worthwhile for me?

PHC – Elite is my community specifically for advanced Facebook advertisers. My ideal customer is someone who spends thousands of dollars per month on Facebook ads. That way, it’s easy for them to get enough value out of the $97 monthly fee to be worthwhile.

In this case, the potential customer is a square peg. It’s a bad fit. They’re unlikely to get enough value out of the community to make the $97 per month worthwhile. As a beginner, they’re unlikely to add much value to the community. Their beginner questions may actually take away value from others.

I would purposefully steer this person away from PHC – Elite. This type of potential customer is precisely why I created a PHC – Basic membership option.

The Dissatisfied Customer

We all get them. You can’t avoid them. No matter what you do or how great your product, there will always be dissatisfied customers.

I might get a message like this…

I just attended the first lesson of your Facebook pixel training program, and I am really disappointed. You were all over the place, and you didn’t answer my question. It was really difficult to follow in the webinar format, and it would be better with live examples. Is this going to improve?

My training programs are set up the way they are for a reason. It’s efficient. It’s easy to keep updated. And the webinars with slides keep me organized and on task.

This approach, of course, is not right for everyone. I understand that. And I won’t force it.

Handle it quickly. Don’t wait. Don’t waste time.

I may respond like this…

Thanks so much for the feedback. Even negative feedback like yours helps guide my product creation, so I do appreciate it.

Unfortunately, this program seems like a bad fit for you. This is the format that will continue throughout the rest of the program. Let’s take care of this now, and I’ll cancel your account and provide a refund. Sound good?

Your instinct may be to get defensive. Or it may be to grovel and do what you can to make them happy. Neither works.

Don’t try to convince the dissatisfied customer that they’re wrong and your product will be great for them. Take an honest look at their feedback and whether there’s any chance they’ll be happy going forward.

The money isn’t worth it. If they aren’t happy, give them the refund and move on. A dissatisfied customer is bound to provide more stress and maintenance that you just don’t need.

The High Maintenance Customer

Some customers are simply high maintenance. You get daily emails from them. They expect special treatment and want custom solutions. Be very careful before giving in.

A potential one-on-one customer wants a custom solution. They want two hours instead of 45 minutes. I get an email with their login credentials asking to log into their ad account. They want me to record the session and request a written report after. I’m sent five documents to review ahead of time instead of the simple questionnaire that I provide. They want an “urgent” appointment time that isn’t available on my calendar. Oh, and they want me to sign an NDA (which I, of course, never do).

All of these things are well beyond the structure of my one-on-ones. I have everything set up the way it is for a reason. It’s how I can be most efficient and help the most people in the least amount of time.

While I could come up with a custom solution for them, I don’t. Instead, I help them understand that this is the nature of my service and this is what you should expect. If it isn’t acceptable, don’t book your time with me.

By caving, I would create more stress and dissatisfaction for myself. It’s not worthwhile.

By being firm and clarifying expectations, one of two things happens: 1) They go away or 2) They accept my terms and are satisfied with the session. By being up front, they accept the terms and change their own expectations.

The Bad Community Member

This is for businesses with memberships built around a private community.

It’s rare, but occasionally I’ll get a bad community member. They’re combative and argue constantly. They spam your community. They publicly complain about not getting the help they need when they provide no help to others. In the end, they provide negative value.

It’s one thing if a member simply doesn’t participate. That’s a zero value member. But the negative value member is a huge problem.

If you don’t do something about the negative value member, they will slowly erode the value of your community. They will make it less desirable for those in it. And you will lose money by continuing to accept money from this one person.

Set very clear expectations for behavior. Have a moderator who can swiftly handle negative value members when they happen. Put out the fire before it starts. And take conversations offline if necessary.

Finally, don’t hesitate to cancel and refund a negative member — even if you don’t typically offer refunds for memberships. Having them around can do way more harm than good.

Your Turn

The bottom line is that we need to look long-term vs. the short-term dollar. Adding a few dollars now for a customer who is a bad fit is bad for your business. Steer these people away whenever possible.

Any other examples you’d add? Let me know in the comments below!

The post Entrepreneurs: Stop Wasting Time on Misfits appeared first on Jon Loomer Digital.

Entrepreneurs: Stop Wasting Time on Misfits
Source: Great Facebook Feeds From Around The Web