B2B businesses are losing significant amounts of money due to bad data and poorly configured martech. In fact, a Gartner study revealed that 30% of a company’s revenue is lost due to bad data. An exponential amount of data is created every day. But most have no idea how to use it or can’t because of siloed systems.
This underuse of martech tools (you're paying big money for!) is holding you back.
Tools fail to provide the relevant customer insights they promised. Business intelligence arrives after the opportunity has passed. It's impossible to target the right prospects or optimize campaigns. Not only are you not getting the ROI you expected from these technologies, you can't prove the ROI you know your team is producing.
Poorly configured martech often fails to provide relevant customer insights in a timely manner, making it difficult to target the right prospects and optimize campaigns, resulting in a decrease in ROI.
B2B businesses are losing significant amounts of money due to bad data and poorly configured martech. In fact, a Gartner study revealed that 30% of a company’s revenue is lost due to bad data. An exponential amount of data is created every day. But most have no idea how to use it or can’t because of siloed systems.
This underuse of martech tools (you're paying big money for!) is holding you back.
Tools fail to provide the relevant customer insights they promised. Business intelligence arrives after the opportunity has passed. It's impossible to target the right prospects or optimize campaigns. Not only are you not getting the ROI you expected from these technologies, you can't prove the ROI you know your team is producing.
Poorly configured martech often fails to provide relevant customer insights in a timely manner, making it difficult to target the right prospects and optimize campaigns, resulting in a decrease in ROI.
B2B businesses are losing significant amounts of money due to bad data and poorly configured martech. In fact, a Gartner study revealed that 30% of a company’s revenue is lost due to bad data. An exponential amount of data is created every day. But most have no idea how to use it or can’t because of siloed systems.
This underuse of martech tools (you're paying big money for!) is holding you back.
Tools fail to provide the relevant customer insights they promised. Business intelligence arrives after the opportunity has passed. It's impossible to target the right prospects or optimize campaigns. Not only are you not getting the ROI you expected from these technologies, you can't prove the ROI you know your team is producing.
Poorly configured martech often fails to provide relevant customer insights in a timely manner, making it difficult to target the right prospects and optimize campaigns, resulting in a decrease in ROI.
Here’s an example of what a Before and After Grid for the resort guest "Busy Brenda" could look like:
Make no mistake, although no money changes hands, this is a transaction – and, it is often the first transaction you will have with a website visitor.
The Lead Magnet exists to increase contacts/subscribers (in other words, leads!) in your database because most visitors to your website aren’t yet ready to purchase on their first visit to your website. In fact, statistics show that the majority of visitors aren’t ready to buy on the first visit.
96% of visitors aren’t ready to purchase or request information on their first visit to your website.
Because the Lead Magnet is the very top of the CVJ Funnel, increasing opt-ins here will pay dividends throughout the rest of the system.
But all Lead Magnets are not created equal: You will need to provide tremendous value with the Lead Magnet.
That said, the common practice of asking for email with a “Subscribe to Our Newsletter” call-to-action is NOT a Lead Magnet! What incentive do they have to give you their precious email – what immediate value will they receive? None. That's why most forms convert less than 2% traffic on average.
On the other hand, the best Lead Magnets will convert north of 50% of visitors into leads. The highest performing Lead Magnets all have one thing in common…
Specificity!!!
This is the key to getting more leads.
You DO NOT need to create something lengthy or complex. However, the more laser-focused your Lead Magnet is — the better it will convert.
So, for example, this is NOT a good Lead Magnet… can you see why?
Sure, it's pretty. There is an offer but it isn’t specific enough…
Your prospect might enjoy exclusive offers, but, even more importantly they want to solve a problem. They want an outcome. This is too vague.
Contrast the prior example with the specific problem that is addressed in this Lead Magnet from BOOM! By Cindy Joseph cosmetic line.
This Lead Magnet speaks directly to the company's Buyer Persona (women in their 40's) and provides a specific solution to help them look and feel beautiful at any age.
A Lead Magnet that solves a specific problem for a specific segment of the market will generate more leads. This will be a lot easier after you’ve created your Buyer Persona and completed the Before and After Grid, because you’ll have a clear idea of the problems they face and the solutions that can get them closer to their desired outcome.
What irresistible "bribe" could you offer in exchange for a prospect’s contact information?
How do you promote your Lead Magnet?
The Lead Magnet is usually offered on a web page called a landing page that is optimized to convert even cold traffic into leads; but it can also be delivered through lead flows, chatbots, embedded lead forms, and other conversion rate optimization tactics.
Regardless of the vehicle you use to promote your lead magnet, the presentation doesn’t need to be fancy.
Here’s a high-performing landing page from Snack Nation
Using a targeted Landing Page results in a more informational lead, rather than a new random email from a person you know nothing about. When you use your Lead Magnet to entice a website visitor to give you their contact info, you see what the lead is interested in and you get a potential customer who is already predisposed to buy from you.
Now, you may be thinking this is the time to hit them over the head with your offer to buy your top-selling products or services.
And you wouldn’t be wrong... at least not completely.
If you want to maximize the rate of leads you convert into customers, before you go into selling your primary product, you want to offer a Tripwire.
Let’s take a closer look at this next step of the CVJ Model...
But, they are not new guests/customers yet – boo!
Even though your new lead has expressed their interest in your solutions through your Lead Magnet, a large percentage of them are likely still not ready to purchase your flagship product, high-end experience, or premium service... at least not yet.
If you understand and execute on this step, you will surely convert more visitors into customers than most of your competitors.
What exactly is a “Tripwire”?
The Tripwire is an entry-point offer designed to convert your new qualified leads into paying customers. It turns window shoppers into customers.
The most common way to make the Tripwire irresistible is by selling it at cost and, in some cases, at a loss to you – but, this isn’t the old auto dealership “bait and switch” loss leader concept.
The Tripwire is a REAL offer, it’s just that you aren’t trying to make a living from selling Tripwires. You are selling Tripwires with the sole purpose of acquiring buyers because there is nothing more valuable than a list of buyers.
There is nothing more valuable to your business than a list of people
who have bought from you already.
This step is not designed to maximize profits. Heck, it’s not even supposed to cover your bills. You’re probably thinking about skipping this step after that statement (C’mon you know I’m right!)
Don’t skip it!
When you understand the rest of the Customer Value Journey optimization process, you will understand how the Tripwire Offer is the single most powerful addition you can make to your conversion funnel — even though you may not make any direct profit from it.
The Tripwire is not a new idea.
The Tripwire is essentially a loss leader. Retail businesses have been using this pricing strategy for years to get people to make the first purchase and stimulate sales of more profitable goods or services. Think Black Friday doorbusters.
Let’s take a walk down memory lane for a dated but incredibly powerful example of a good Tripwire. If you’re old enough to remember it, you may have even signed up for it.
This offer from Columbia House is one of the best-known and most effective Tripwires ever created. Simply put, buyers paid a super small fee to get their first taste of a worthwhile product and then became long-term customers as they rolled into the monthly subscription service.
- Low-dollar amount — check!
- Valuable product — check!
Today, you can use this same approach to fuel the conversion funnel for your products and services, allowing you to convert more sales at a higher-margin.
Still feeling a bit skeptical?
Let’s take a look at a more relevant example.
Timeshare companies have been effectively using Tripwire offers for years...
In order to entice prospective buyers to visit their timeshares, they’ve offered discounted or free stays to hotspot destinations, as well as tickets to nearby attractions. Typical Tripwire offers might include:
- Three nights in an Orlando hotel and two tickets to Disney theme parks for $99
- A stay in a Las Vegas hotel and free gambling credit for $44 per night
- Three days and two nights in a luxury resort, plus two theme park tickets for $169
For eCommerce, a Tripwire is usually a deeply discounted item in your store. Some other relevant Tripwire ideas include:
- Selling kitchen design at a steep discount to encourage the purchase of the kitchen cabinets
- Selling a tour at a discount to incentivize the purchase of higher-margin add-ons such as meals, souvenirs, drinks, or photos.
- Offering a free consultation, demo or analysis for a B2B service or software
- A mini online course (yes, this can be used for a Tripwire idea too)
Why is offering a Tripwire worth my effort?
Remember the stats we shared earlier? Here's another sobering one...
Only 17% of consumers browse a website with an intent to purchase on their first visit, according to the 2018 Reimagining Commerce study by Episerver.
In fact, only half (50%) of shoppers immediately head for the product they want to purchase. You have to woo them, motivate them and hook them.
The strategy behind the Tripwire is simple: Convert the maximum number of Lead Magnet leads into paying customers, even at the expense of your profit margin, with the understanding that acquiring a paying customer will deliver profit through the next three steps:
Step 5 – Offer Your Core Product
Step 6 – Offer A Profit Maximizer
Step 7 – Establish A Return Path
When you offer a Tripwire your goal is to also achieve the following:
- Increasing rapport and trust with your Buyer Persona
- Getting a “micro-commitment,” which makes it easier to make a bigger purchase later (Note this can be a money or time commitment)
- Break even on your cost of customer acquisition
Before we leave this step, let’s take a closer look at customer acquisition costs…
How can I figure out my customer acquisition cost (CAC)?
It really is a simple equation:
- Calculate the total amount spent on acquiring more customers (marketing and sales expenses)
- Calculate the total number of new customers acquired in the period the money was spent.
- Divide total expenses by the number of new customers.
For example, if a company spent $2,000 on marketing in a year and acquired 100 customers in the same year, their CAC is $20.00.
With a well-executed conversion funnel, you can cover these costs with your Tripwire, so every purchase or upsell that comes afterwards becomes pure profit. Once you calculate your customer acquisition costs, you can build a Tripwire packed with enough value that you can sell it at a price high enough to cover your CAC.
Once you’ve turned your lead into a customer with a Tripwire, it’s time for the next step…
The world’s most successful brands generate the bulk of their margins from Profit Maximizers.
Check out these examples:
- Express oil change companies like Jiffy Lube don’t see much net revenue from their core offer of oil changes. After the cost of supplies and employees, there isn’t a lot left over. The real money comes in with added services like tire rotations, air filter changes, and changing belts.
- McDonald's spends a fortune on advertising and burger sales probably cover the cost of customer acquisition, but not much else. It’s when customers buy fries and a soda that the franchise owner generates the real money.
- Best Buy makes little profit on high-cost items like TVs and computers which are expensive wholesale. But, the company maximizes profits through sales of accessories, warranties and technical support.
What could you be offering as an upsell or cross-sell? What could you bundle with your Core Offer? How can you incorporate a subscription or membership into your business model?
Amazon does a great job of this with "recommended for you" and "people also viewed" recommendations during checkout - this is fairly easy to mimic on an eCommerce site.
Remember to shape your Profit Maximizers to ensure that these upsell and cross-sell efforts are in tune with your core product, your brand and values. Doing this helps to ensure that customers keep coming back.
And that means more profit generated by your business.
Once you've created your Profit Maximizers, it's time for the final step...
