don’t fix what ISN'T broken

Ad Spend To Date For Business Case Spoken About

Identifying Operational Bottlenecks & Adjusting Lead Strategies

This week, and typically in any business, you're going to run into problems.

Those problems generally stem from a decision made previously, either by you or the team, that was incorrect.

When I say incorrect, you could argue it was part of the learning process, and the framework you used for that decision has now been adjusted or is adjustable.

We had a lead magnet that was working.

Learning from Business Life Cycle Mistakes

The offer was a free video consultation for a medical business, and it was irresistible simply because there was no front end risk for the customer, and the value they received was extremely high, especially since it was complimentary.

Leads flew into our pipeline, but the bottleneck became the fact that we couldn't qualify the leads fast enough while also doing the video consultations, which in hindsight was an operational issue.

We then changed the lead magnet to a $199 offer, thinking that by running a purchase campaign, we could mimic a competitor in the industry.

However, where we fell flat on our face was that we did this too early in the business life cycle.

There wasn't enough cash in the business to support that decision, because if you're going to make a move like that, you need to be prepared to undertake the risk and carrying costs associated with it.

Additionally, if you track the LTV (lifetime value) of the customer over their entire life cycle, even in a new business where the data might not be fully accurate, you can still make a more educated decision.

For us, we knew the LTV, and our front-end ad spend more than covered costs at a high margin.

So by offering the free option on the front end, we more than made up for it on the back end with significant gains.

Moral of the story: don't break what's working, fix the real problem.

Sometimes you think you know what the issue is, but you don't.

Ask others for counsel and gather all the necessary data points before making decisions, because some decisions can take a long time to fix.