happy customers (brainstorm).
Day 25 of 30 — Public Thoughts
Been wanting to write a page about happy customers and that mindset shift…
So today mapping out some of the talking points.
optimizing for happy, long-term, repeat customers and that is the goal of the business system you’ve created. — the traffic engine, Shawn Twing, MMS
Fundamental Reality #6: We Have to Know What We’re Optimizing for Strategically to Make Better Choices Tactically
three elements of systems theory to inform our retargeting decisions.
- Your business is a system of interrelated parts from which results emerge, not a collection of individual steps to be optimized separately.
- Throughput — the rate at which your system produces its overall goal — is the most important decision-making metric.
- There’s always one — and only one — constraint slowing down the whole system.
your business is a system … look at quotes from musk and dalio
Conventional thinking suggests that businesses and funnels are linear constructs that can (and should) be optimized step by step, piece by piece.
- Systems theory, on the other hand, suggests that businesses and funnels are holistic constructs where results emerge from the relationships and interplay of the various elements.
- Instead of optimizing the parts, systems theory emphasizes optimizing the whole.
Throughput is the rate at which your business system produces its highest-level goal.
If our goal is to produce happy, long-term, repeat customers, we need to convert that to metrics we can measure and then define our terms clearly.
- Happy is subjective and includes many positive behaviors — unsolicited positive feedback, referrals, public acknowledgments, etc.
- Metrics for long-term and repeat customers are subjective too. And those may not apply to your business, so consider them optional (but recommended if they add value).
- My recommendation to simplify this idea into something immediately actionable is to include refund rates in your high-level calculations so you have a more complete, accurate assessment of your business performance. (My broad assumption is that customers who refund are not happy.)
- example.
- Example Business No. 1 generates 100 customers per day from paid traffic with a 5% refund rate (over 60 days). That means every sixty-one days they have created, on average, 95 happy customers.
- In an attempt to improve results, they rewrite their sales page with higher-pressure, persuasion-focused sales copy that generates ten additional sales per day (wow!), but increases their total refund rates from 5% to 15%.
- Did they improve their performance? The immediate answer is yes — daily sales increased by 10% (i..e, 110 sales instead of 100). However, if we look through the lens of throughput we’ll see that their performance suffered.
the wrong questions most business ask — how can I get MORE leads/customers?
- problems -> low lead quality, turnover/churn,
will this create more happy customers
- repeat this all the time to get this engrained
EXPEREINCE
- inneficiencies - don’t make sense in previous question but can make sense in the “will this create more happy customers” question
- relationships
- empathy
- not a funnel you push someone through, a world that you pull someone into
Brands doin it well
- Disney (old),
- liquid death
- Taylor swift
- Ryan holiday
- apple
- amazon - relentless focus on customer experience (Jeff Bezos quote)
- Scrub Daddy
- Andre Chaperon and Shawn Twing
- Alex Cattoni
Didn’t realize going into this how much of systems theory I would have to be diving into to make sense of happy customers LMAO!
Gonna be a bigger undertaking than I thought 😅
