The 3 Key Ways You Can Increase Client Lifetime Value With Email Marketing – Derek Johanson (CopyHour) Interview
What’s the best way to grow your business and increase Client Lifetime Value with email marketing?
There isn’t one, but there IS an excellent framework you can use to make your email stronger.
Enter Derek Johanson. Derek’s an Online Marketing Consultant for small businesses. He has a popular Copywriting course and Facebook group called CopyHour.
He's also a fan of marketer Jay Abraham. If you've read "Getting Everything Out of Everything You've Got" you're familiar with Abraham's 3 key methods to grow a business.
In this post you'll see how Derek applies these methods to email marketing.
Let’s get started.
There Are 3 Main Ways to Increase Client Lifetime Value
Increase your number of clients (e.g. generate leads or improve your conversion rates)
Raise the value of each transaction (e.g. raise your prices or sell more expensive products)
Increase the frequency of purchase (e.g. the number of times your customer buys from you)
Consider all 3 methods when calculating your Client Lifetime Value.
Derek says most business owners spend all their time on leads and ignore the other two methods (including conversion rates).
This is a HUGE mistake because you’ll be missing out on other opportunities to make money.
How to Use All 3 Methods with Email Marketing
"When people are more knowledgeable about your product’s benefits, they’ll be willing to pay more." - Derek Johanson
John gave 3 high-level steps to applying Abraham’s methods to your email marketing:
Step 1: Get enough traffic to your site (paid or unpaid)
Step 2: Have systems in place to convert these prospects into customers. This is where email autoresponders and lead magnets like free courses come in.
Step 3: Increase the value of your transaction through education.
You can have people go through your course 1st to pre-qualify them. This is what Derek does with his 10-week CopyHour course.
Over time, you'll build up your reader’s knowledge. Then you can justify higher prices when you up-sell. This is exactly what Derek does with his premium membership offering.
There’s one main reason why sales pages for expensive products tend to be long. It's because they need to overcome more objections than cheaper products.
Derek’s also found that selling through email every day tends to increase conversions.
And it can be easy to manage. CopyHour’s delivered through 10 weeks of autoresponders, so a lot of the work's done upfront. It’s an excellent example of how to sell an evergreen product.
Let’s summarize what we’ve covered so far:
To increase his number of customers, Derek has an evergreen course (CopyHour) that’s supported by a growing Facebook group.
To raise the value of each transaction, Derek uses his CopyHour course to educate his Copywriting students. Once they're in his funnel, he can up-sell them to premium offerings.
Lastly, he’s able to increase the frequency of purchase by cross-selling similar Copywriting products. These can be his own products or affiliate offers or joint ventures.
One last point that I learned many years ago:
You need to follow-up with prospects and clients all the time.
It’s rare that you’ll make the sale on the 1st attempt. Derek points out that it can take 1 or 2 years for people to buy from you, so you need to keep in touch.
Email marketing can have an exponential effect to help you increase Client Lifetime Value.
So start applying Jay Abraham’s 3 methods to YOUR emails and watch your business grow.
To find out how I can apply this approach to YOUR business, find out how you can work with me today.