10x Revenue with 1 New Sales Process... Here's How

The Game w/ Alex Hormozi
18 May 202432:49

Summary

TLDRThe speaker shares his expertise in scaling companies by focusing on the sales process, particularly the 'diagnostic sale'. He outlines a five-step process involving pre-sale questionnaires, credit card information gathering, understanding customer situations, identifying obstacles, and presenting a solution tied to overcoming these obstacles. He emphasizes the importance of secret shopping, anticipating objections, and implementing a diagnostic sales process to increase customer lifetime value. The speaker also discusses transitioning to a recurring revenue model and offers strategies for sales step-downs, demonstrating how these techniques can significantly increase a business's revenue and customer engagement.

Takeaways

  • 💰 The speaker crossed $100 million in net worth by age 32 and sold a company for 46.2 million, attributing success to the ability to grow and scale companies.
  • 📈 They purchased a business with 14 locations and grew it to 32 locations in a year, using a sales process called the 'diagnostic sale' to increase recurring revenue significantly.
  • 🔍 The diagnostic sales process involves a pre-sale questionnaire to understand customer needs and pain points, which is crucial for tailoring sales approaches.
  • 💡 The process also includes collecting customer information and credit card details early to streamline future transactions and increase the likelihood of sales.
  • 🛒 The speaker emphasizes understanding the current situation and desired state of the customer, identifying obstacles, and presenting a solution tied to overcoming those obstacles.
  • 🔑 A key step is 'secret shopping' the business to identify real-world customer experiences and areas for improvement in the sales process.
  • 🎯 By focusing on offer and packaging constraints, the business was able to increase rebooking rates, which was identified as a significant opportunity for growth.
  • 🤔 Anticipating objections, or 'killing zombies', is crucial to prepare the sales team to address potential customer hesitations before they arise.
  • 🔄 The diagnostic sales process was implemented in a service business, transforming a transactional sale into a more customized experience without changing the core service.
  • 💸 The implementation of the new sales process led to a 4X increase in Lifetime Value (LTV) progresser, demonstrating the effectiveness of the diagnostic approach.
  • ⏳ The speaker suggests transitioning to recurring revenue models, such as payment plans or memberships, to increase customer retention and revenue stability.

Q & A

  • What was the speaker's first significant achievement in business?

    -The speaker crossed $100 million in net worth by the age of 32 and sold their first big company for 46.2 million.

  • What is the speaker's current business strategy?

    -The speaker buys companies at a lower price, grows them, and then sells them for a profit.

  • How did the speaker grow a recently acquired company from 14 to 32 locations?

    -The growth was achieved by focusing on the sales process and implementing a method called the 'diagnostic sale' to increase recurring revenue across all locations.

  • What is the purpose of the pre-sale questionnaire in the diagnostic sales process?

    -The pre-sale questionnaire aims to gather more information to arm the salesperson, understand the customer's needs and pains, and increase their awareness of the problem.

  • Why is obtaining the customer's credit card information early in the sales process considered key?

    -Obtaining the credit card information early streamlines the sales process, as it eliminates the need to ask for it again when making a sale.

  • What is the significance of understanding the customer's current situation and desired state in the diagnostic sales process?

    -Understanding the customer's current situation and desired state helps in identifying the obstacles and tailoring the sales pitch to overcome them, presenting a solution that aligns with the customer's goals.

  • What is the 'diagnostic sales process' and how does it differ from transactional and enterprise sales?

    -The diagnostic sales process is a method that bridges transactional and custom sales, focusing on understanding the customer's needs and presenting a personalized solution. Unlike transactional sales that fit the customer to the product, and enterprise sales that involve complex decision-making, the diagnostic process tailors the presentation of a standard product to feel customized.

  • How did the speaker implement the diagnostic sales process in a gym business?

    -The speaker used a pre-sale questionnaire to understand the customer's fitness goals and obstacles. They then presented a personalized plan focusing on fitness, nutrition, and accountability, and tied the price to achieving the customer's specific goal, offering a guarantee.

  • What is the importance of 'killing zombies' in the diagnostic sales process?

    -'Killing zombies' refers to anticipating and preparing for objections or obstacles that potential customers may raise. This strategy helps to address concerns before they become barriers to the sale.

  • How did the speaker's approach to sales increase the average revenue per customer in a medical service business?

    -The speaker shifted from selling one-off transactions to presenting a customized solution tied to the customer's desired outcome. By doing so, they increased the average revenue per customer from $200 to $800.

  • What is the final step in the diagnostic sales process as described by the speaker?

    -The final step is transitioning to recurring revenue. This involves offering customers the option to prepay for a discount, setting up payment plans, or transitioning to a membership model to secure ongoing business.

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Etiquetas Relacionadas
Business GrowthSales TechniquesRevenue BoostCustomer ValueStrategic SellingBusiness ScalingLead GenerationMembership SalesRecurring RevenueSales Process
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