🤖🚀 How to make your customers worth more...

Read time: 4 mins…

Welcome back folks 🫡

This week’s Hyper Growth Blueprint covers:

• ⛰️ Two lessons from the Three Peaks

• 💰 How to make your customers worth more…

• 🤑 BONUS: How to increase revenue by 8% overnight

• 🤖 Mega-Prompt of the Week: Get AI to increase your LTV

Let’s go… 👇

I’m writing this with extremely sore legs…

Over the weekend the entire BOTTERS. team took on the 3-Peaks Challenge.

We climbed the highest mountains in England, Scotland, & Wales all within 24 hours.

(23 hours & 47 minutes to be precise)

It was waaaaaaaaay harder than I anticipated.

And pushed us all to our limits.

But I took away two things from it:

• Life is to short to not do crazy things
  
  I kept thinking at the end it is a shame we hadn’t done more stuff like this sooner.
  

• Nothing binds people closer than a challenge
  
  This environment forced us to spend a lot of time together in some pretty bad states… and we all emerged from it closer than ever.

We also did the challenge to raise money for a charity called Transcend Sarcoma. 

It’s funding research for a really rare type of cancer that is sadly affecting someone close to one of our team.

We’re a little off hitting our target, so if you want to learn more & donate you can do so here

How to make your customers worth more
by increasing their Lifetime Value (LTV)

Last week I talked about understanding your LTV:CAC ratio.

(You can refresh your memory on this here)

One of the best ways to grow a business is to make your customers worth more to you.

Fundamentally, there are 4 ways we do this:

1. Increase prices

2. Increase how many times they buy

3. Increase the number of things they buy

4. Increase your gross profit margin

Let’s explore them…👇

1. Increase your prices

The easiest & quickest way to increase your LTV.

If you haven’t done this in the last 12 months… I highly recommend just doing it.

If you increase by 50% and lose half your customers…

…then GOOD!

You’re earning the same & doing less.

My business has grown 50+% the last 3 years and our client count has stayed almost exactly the same.

This is because we have continually increased our prices, whilst also providing more value to our clients to make it a no-brainer for them.

2. Increase how many time they buy

Do your customers buy once or is it recurring?

If it’s a one-off purchase…

…how can you build in some continuity?

I spoke with a guy doing £5m+ year selling hot tubs…

His genius move?

Every time he sells one, he signs the customer up to a £300/year annual service fee.

As as result, he’s grown to have a function in his business brings in £2m in annual recurring revenue that operates at 75% profit margins.

3. Increase number of things they buy

What else do your customers need that you can sell to them?

What else do you already have that they might not know about?

It’s much easier to sell to someone that has already bought from you than someone new.

4. Increase number of things they buy

If you can deliver the same thing but reduce how much it costs you…

…you increase your gross profit and thus increase your LTV.

This is my least favourite as:

a) It requires a scarcity mindset

b) It tends to deliver marginal improvements to LTV vs the others.

BUT…

…it should still be considered as improving your efficiency of fulfilment (without reducing quality) is more possible than ever thanks to AI.

BONUS: How to increase your revenue by 8% overnight

If you bill your customers monthly…

Switch to billing in 4 week cycles instead.

There are 12 months in the year.

But there are 13 four-week cycles.

Start billing every 4 weeks and you will instantly add 8% per year in additional revenue.

That’s all for this week - I hope you found it useful.

Take it easy,

Elliott ✌🏼

P.S. Are we connected on LinkedIn?

I post something everyday… find me here.

P.P.S. I enjoy writing this newsletter so much… I launched another one.

The Limitless Entrepreneur is a passion project where I write about optimising your health, energy, & productivity to build epic businesses so you can live an epic life.

It’s completely free. You can check it out here.

Mega-Prompt of the Week 🤖

Get AI to help you increase your LTV!

Give AI some background info on your business… and voila it will use the methods I wrote about above to help generate ideas for how you can increase your LTV.

(NB: All you have to do is refer 2 people to this newsletter using your special link below & you will unlock permanent lifetime access to this newsletter segment.)