Here are some of my key takeaways from this episode:
- We should find products for our customers, not customers for our products.
- We should listen, ask, and then execute.
- Listening to our customers’ passions is the best way to monetize.
Becoming Customer Centric
Seth Godin, a marketing expert, said, “Don’t find customers for your product. Find products for your customer.” We need to be an insanely customer centric, customer focused business.
Businesses often make the mistake of first creating a product they feel is great and then trying to find someone to sell it to. That business model is becoming less and less successful. Instead, we should start with our audience. We should first find what our audience wants to buy and then make it and sell it to them. It seems so simple, but I believe the majority of businesses aren’t doing it.
Ford is the perfect example of a company who failed to put their customers first. Ford spent more than $400 million creating a new car, Edsel. However, after just a couple of years, they had to take the car off the market because people did not want to buy the car. Ford didn’t find out what their customers wanted before they created a product. This is how we lose money. So, how do we avoid making this horrible mistake?
Kaetlin Poulin – Lady Boss Weight Loss
I attended Funnel Hacking live about three months ago and on the first day of the event, we were blessed to hear from Kaetlin Poulin. Kaetlin is the founder of Lady Boss Weight Loss, the fourth fastest growing company in America according to Inc. and she generates more than $160 million in annual recurring revenue.
At the conference, Kaetlin told us that we shouldn’t pigeonhole ourselves into one specific market. We’re not just in the e-commerce business. We’re not just in the coaching business. We’re not just in the digital products business. We shouldn’t limit ourselves to one single market.
Instead, we need to be in the business of serving our customers. In the beginning of Kaetlin’s entrepreneurial journey, she thought she was a digital products company. When her customers asked for products outside of the digital product space, she would tell them no. She thought she had to focus on just one thing. However, she quickly realized that she needed to focus on a customer obsession. She needed to change her focus to giving her customers what they really wanted.
When she was so focused on staying within her market, she missed a lot of opportunities, and as a result, was leaving a lot of money on the table. It wasn’t until she started listening to her customers that she realized she’s not in the business of selling digital products, she’s in the business of serving her customers.
After this insight, she let go of the company’s old identity that was holding her back as an info products business and she started serving her customers. She started asking them what they wanted and grew to the success she has today.
Finding Customer Insights
When Kaetlin started listening to her customers, she gained new input and data on ideas for new product lines. She said there are three common questions she would ask herself:
- Who is it that you serve?
- What is the goal they are trying to reach?
- What do they want? (What do they want or need to reach that goal?)
We first have to know who our ideal customers are. In previous episodes, we’ve discussed how we can find our love group, the customers who love us the most. This is our ideal audience. Then, we need to determine the problem they are trying to solve or the goal they are trying to reach. What is their level-10 passion? We can determine this by using the five whys exercise we discussed in a previous episode. Finally, we have to determine how we can give them what they want or need to reach their goal.
When Kaetlin focused on taking care of her customers first and listened to what they wanted, she found more success. She explained that the three strategies for this success is to:
She first builds her products by serving her demographic and using their answers to create the product. She takes the biggest problems they have, and then focuses on solving those problems within her product.
When she listened to her customers she discovered they wanted clothing. They wanted merchandise they could wear that conveyed the passion they were feeling for Lady Boss. So, they developed a physical line of clothing, which now generates more than seven figures a year.
They listened again and they realized their customers wanted a coaching program. Their customers wanted someone to hold them accountable and to encourage them. So, Kaetlin started a coaching program which now generates more than seven figures a year as well. They listened again and realized their customers wanted an event. Their customers wanted to come together and connect with other people. Kaetlin created an event that is now the largest driver of their coaching program.
When Kaetlin started listening, she discovered multiple new revenue streams for her business. She encourages us to simply keep serving your customers. What do they want? What can we do for them? When we serve our customers and discover their level-10 passions we can generate more revenue.
How to Listen to Our Customers
Kaetlin said, “Listen is the magic before the ask.” She encourages us to listen to our customers in any way we can. Here are a few ways we can listen to our customers:
- Facebook groups
- In our communities
- Social media
- Focus groups
- Service emails
- Reviews and testimonials
We should create or find a place where the people who are passionate about what we do can gather and talk. Being able to listen to what they’re saying is one of the greatest values of creating a community.
We can also listen to our customers by looking at our competitors. We can look at what customers are already buying from other companies. Kaetlin found that 60% of her customers were already buying protein bars from other companies. This gave her great insight about her customers’ wants and needs. If they were already buying protein bars, she could incorporate protein bars into her own company.
As we are listening, it is also very important to narrow down the information we learn. We don’t want to lose the best ideas because we are surrounded by too many okay ideas. We should determine which ideas resonate the most with our customers instead of trying to incorporate everything. Kaetlin does this by having her customers vote in focus groups.
Instead of taking one idea that one person had and running with it, we should surface and prioritize the problems and the ideas that are the most important to our customers. We should focus on the one thing that best solves the biggest problem.
We should first listen to our customers to find out what they want to buy from us, create it, and then sell it. That is one of the greatest ways to monetize our customers’ passions.
Thank you so much for joining me for this passion marketing series. I wish you success in your passion marketing and passion monetization.