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

Summary

The 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.