Hello and welcome to the bottom up skills podcast I'm Mike Parsons, the CEO of Qualitance. And today we are a part, two of the full funnel, the full growth marketing funnel, and we are moving away from the A's that were in the first part of the funnel. The awareness, the acquisition. The activation we're into part two, it's all about the IROs, their retention, their revenue, and their a foe.

And did you know that sometimes the growth marketing funnel is called pirate metrics because when you put them all together, they spell higher, but there you go. That's just great marketers being crazy. I of course am not crazy. I am going to tell you about the second part of the funnel. Now, the second part of the phones.

Kind of all the things that start to happen [00:01:00] once you have the customer and, you know, traditionally marketers were like, Hey, that's over to customer service. I am thinking about that, but growth marketers, they think about the entire funnel, the entire user journey. That's the beauty of it. So let's look at these us first.

Ours is all about retention and that's trying to uncover how many people come back for a second. Third. Fourth or fifth time and trying to really optimize that and converting that into revenue. How many people are paying, how much do they pay? And if we're real good, if we're delighting, if we're satisfying our customers, we should hopefully get some referrals.

We might even get. What they call in the lean world, a viral coefficient. And these are really powerful things because, Hey, if we do a good job with those that we have, and we can attract more with them, then you know, you start to get efficiencies. You start to get scale. You start to, if you're really good, you get [00:02:00] exponential characteristics.

If you can design your service to improve with the more people are on it. Take Uber or Airbnb, a classic examples of this, then you're really cooking with gas. All right. It's time to get into this funnel. Let's get into retention. So retention is all about like how many people are actually coming back. So they've had the first experience, but how do we get them back the second and third time?

Now, one of the great best practices here in the world of growth marketing is to offer a freemium product. Now, there is a great example of that. We've done a full case study on this company. It's obviously zoom video and they gave away a free version of their product for consumers. You know, pre COVID. I think you got up to 45 minutes.

I don't know if they've changed that now, whether it's unlimited, but the point here is by giving away to consumers, a free version of their product, that means people could experience [00:03:00] the magic. And we spoke about this in the last episode, really getting people to the magic as quick as possible, but the freemium model builds on that.

It means that they can come back time and time again for it. And, and if you look at their large enterprise clients, over half of their large enterprise clients announced zoom, where they make a lot of money started with one person in the company using zoom personally, as a consumer for free. So that's how retaining the customer made a highly profitable high growth business.

Now another thing that you'll probably notice from services when you kind of think about your customer experience is the way in which email automation can play a great job in notifying you as a user. Hey, time to come back. A reason to come back. This is very good for retention. You'll even see. That this email marketing may be rewarding.

You and maybe sending you [00:04:00] personalized content, maybe offering you rewards and loyalty programs, but this is the world of retention. Now here at bottom up, just to give you an example of what we do for retention, every student that completes a. Masterclass on bottom-up dot IO, they get a certificate.

That's great. That's a shareable moment. But what we also do is we also notify everybody by email, when a new courses available, this is all about retaining the customers. We have getting them to use the service. As many times as possible. Now, key question to ask yourself here in retention, is, are we winning?

Are we acquiring customers faster than we lose them? This is probably the ultimate question to be asking yourself in retention, because you want to be on the right side of that. Equation. Okay. So we've got in the head retention, let's now go to revenue. This is where we kind of getting into some real metrics, almost lean analytics, if you will.

[00:05:00] This is where we're trying to think about, you know, how much people are paying, um, and how many people are actually paying. So the best practice here is you're really trying to find high value customers. Find the ones that are really active, that are paying a lot, get feedback, and build around that. And one of the other ways to give trust big thing with revenue and transaction 24 hour a day, seven days a week.

Customer support on all channels. And this will be a huge trust builder and the metrics that really matter at this stage, it's like every rate, average revenue per user average revenue per paying user. And if on the more mature products you might be getting into lifetime value. And alike. Now the best example I can give you here is Facebook.

Um, Facebook, if you have a look at this, you can actually see this chart on our masterclass at bottom-up dot IO. So go check out the growth marketing masterclass, but take it from me over the period of [00:06:00] 2012 to 2020. You will see that almost every consecutive month, every second quarter, the revenue per user.

The average revenue per user increases. This is crazy. They did it not just for months for quarters, but year after year after year, this, these metrics are off the chart. This is such a healthy sign of a business. If your average revenue per user continues to increase, if you have the inverse of this. I'm sorry to tell you, warning sirens are going off like crazy, because if that number is declining, then there is something very wrong in the way you're converting through your funnel.

And you really need to go and ask questions. Like, do we have the right pricing? You have to do experiments on upsell and cross sell and you need to find out what is the most effective source of, for your customers. Why and why are they coming back is really important to ask those [00:07:00] questions. Okay. So that was the world of revenue.

This gives us one, I left the referral. Okay. So we are, we're really getting through the funnel. In fact, in the earlier episode, we did awareness, acquisition and activation. That's the top of the funnel. Now we've done retention. We've done revenue. We are all into the world of referral. And of course, this is all about asking the question, like how many people are referring, how many happy customers.

Going out there and saying, you got to use it now. This is such an important measure of customer satisfaction. And the key metric I would always go for here is your net promoter score, you know, score of one to 10. How likely would you be to recommend this product or service to a friend or family member?

Really important because whilst it's actually not much work for the person to leave that number, to give that score, it's one of the, I've found it to be one of the best indicators of, are you doing a good job overall as a business? [00:08:00] Now, when we think about referrals, you should be thinking, well, there's a whole practice on r...