The Game with Alex Hormozi These 3 Things Will Make Your Business Unstoppable | Ep 816
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Dec 30, 2024 Delve into the complexities businesses face while serving smaller customers, focusing on volatility and churn. Learn how targeting a stable, higher-tier clientele can secure consistent revenue. Explore the differences between the rank and build model and elegant solutions to enhance offerings. Finally, gain insights on valuing service-oriented versus software companies, emphasizing the importance of operational effectiveness over surface metrics.
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Avoid Small Customers
- Stop selling to small customers, as they often churn due to business failure, not product dissatisfaction.
- This "structural churn" destabilizes your business, regardless of product quality.
Gym CRM Churn
- A gym CRM had high churn because many gyms went out of business, not due to CRM issues.
- This highlights the risk of serving inherently volatile customer segments.
Target High-Spending Customers
- Target high-spending customers first, as they offer stability and higher profits.
- Then, leverage that reputation to attract lower-tier customers with tailored offerings.
