Engagement Is Key For Your Online Course Business
There’s a stat I read recently that blows my mind.
According to a report published in The Manifest recently, only 6% of small businesses are focused on retaining their customers. Yes, you read that right. Even though everyone’s goal is to increase sales and boost their bottom line, only 6% focus on retaining the pool of warm and hot leads they already have right under their nose. Instead, they are content spending precious money and time trying to send cold traffic to their courses and services, all the while letting returning clients and customers walk away unnoticed.
My first thought is why?
Why are online course creators spending so much time and effort trying to get new students without even trying to squeeze the maximum amount of revenue out of the client base they already have?
It’s a fascinating question, and if you’re part of the 94% that are not focusing on this, I’m going to discuss a few things today that will hopefully change your mind and show you why joining the rest of us over here in the 6% category will massively impact and accelerate your business in a positive way.
Fact: Existing clients provide the most consistent, long-term revenue stream for companies that know how to keep them engaged.
With that in mind, let me start with 2 questions:
- How much more profitable would your online course business be if you could significantly cut back on marketing because you’re retaining and upselling more clients?
- Did you know that if you can convince a client to make two purchases from you, their level of dedication to you (your brand), and their personal outcome regarding your course or service grows exponentially?
Don’t just keep reading. Stop and think about those questions for a minute. If the answer to question one is: “Way more profitable!” and the answer to question two is: “No, I didn’t realize that!” then you have an incredible opportunity sitting right in front of you ready to be tapped into.
This is why I focus so much on client engagement over most other marketing, content, ads, etc. There is so much money being left on the table, and only 6% of business owners “see” it.
Increasing client engagement just makes sense.
Let’s continue digging a little deeper to show you why client engagement will help your online course business and why you’re leaving so much money on the table without it.
Here are 4 reasons you can’t remain one of the 94%.
1. Engagement Improves Course Completion Rates
It’s simple, really, when you keep your clients engaged, more of them complete your online course. When they complete your course, they realize the benefits of everything you teach. When they recognize the value and benefit of your products and services, they buy more. When they buy more, you make more money!
If you’re looking to maximize the value of each person that goes through your course, the last thing on earth you want them to feel is alone, forgotten, or neglected. Instead, take the time to reach out, guide them, and keep them motivated. Consistently remind them of the value they are receiving and ask them to respond and report back. Just because you got them in the door, doesn’t mean you can stop “wooing” them.
2. Engagement Creates A Free Army Of Promoters For Your Brand
Engaged customers become advocates. Just think about the last time you really loved a product or service. You probably told all your friends and family about it, right? Of course, you did, most people do. Or what about a time you received incredible customer service?
When cool things happen to us, it’s human nature to tell everyone we know, so why not leverage this for your business? By keeping your clients engaged and impressed throughout your online course, they become an army of marketers out there promoting your brand and services. And the best part is this costs you nothing! A personal recommendation or Facebook post will have much more impact than a random Facebook or Google ad you pay to have placed on some stranger’s timeline.
3. Engagement Generates Higher Profit Margins And More Consistent Revenue
Return buyers are more reliable buyers. And they’re also cheaper buyers. Let me explain.
Your profit margin is inherently more for return buyers because you don’t have to put in as much time and effort to get the sale. With a new client, you have to take the time to explain your value, you have to take the time to explain your company, and you have to take the time to explain your offer. And in a world where time is money, that starts getting expensive. Combine that with the fact that Facebook and Google ads are getting more and more competitive and costly by the day, and it doesn’t take long to realize starting from scratch in your customer search is not an affordable approach. On the other hand, return customers already know your business. They already know what you offer. It takes less time and effort to convince them, and that means more money in your pocket.
Additionally, return clients are more reliable. Gallup’s analysis has found that fully engaged customers tend to be more loyal and profitable to companies even when economic times get bad. So, if your higher can be higher, and your lows can be minimized, doesn’t that sound appealing? That’s what client engagement offers.
4. Engagement Helps You Stand Out From The Competition
Customer Experience is quickly overtaking price as the number one factor in people’s minds when it comes to products and services. People are tired of cheap and cookie-cutter and are willing to pay more for a better experience. With engagement, you can provide a better experience, and thus demand a higher price for your course and products.
Let’s look at an example to pull this all together!
Customer Experience is quickly overtaking price as the number one factor in people’s mind when it comes to products and services. People are tired of cheap and cookie-cutter and they willing to pay more for a better experience. With engagement, you can provide a better experience, and thus demand a higher price for your course and products.
Let’s look at an example to pull this all together!
I can talk all day about how much engagement will help your business, but let’s look at some real-world numbers to make a case for focusing on client engagement a little more convincing.
Here’s an example of the “old way” versus the PEP System™ (Profits, Engagement & Pricing System).
Two online course creators launch their course and attract 10,000 students.
Because of all the money they had to invest in building a funnel, advertising and more, they know they won’t make much money on the first course. The money will be made on the upsell.
Here are the results:
Course Builder A uses the typical “industry” practices and approaches and is experiencing average linear growth in his business. Due to Learner Friction™, he only sees a 5% completion rate for his course and only 520 students reach completion. He’s actually a pretty good salesman and writes persuasive copy, so he’s able to achieve a 33% upsell rate, which translates to 172 people that buy his more profitable $2,000 course.
Total backend profit: $343,200
Course Builder B chose to use the PEP System™. He experiences accelerated company growth, much less Learner Friction™ and sees a 32.6% completion rate for his course. That is 3,260 students that completed the course. He’s pretty good at selling his follow-up course as well and converts 33%, which translates to 1,076 students that buy his more profitable $2,000 course.
Total backend profit: $2,151,600
The difference is an incredible 1.84 million dollars!
Course Builder A can have the most amazing FB ads, copywriting, marketing, and more. But, if his students experience Learner Friction™ and don’t complete his course, he’s leaving nearly $2M on the table. Imagine what impact an additional $2M would have on your business! Course Builder A is choosing linear growth instead of accelerated growth. It’s a shame, really.
So, what did we learn?
If you focus on client engagement, you will see the results. If you don’t, you’re not only leaving cash on the table, and you’re spending more of your valuable time and resources on less profitable cold traffic.
