تدريب Shadowing: I built an app and no one's using it - تعلم التحدث بالإنجليزية عبر الفيديو

All right, Drew, what's up?

We're cooking.

Can you hear me?

Nice to meet you, man.

Nice to meet you, too.

Talk to me.

What's the problem?

So we made the app for fence contractors.

You made an app for defense contractors?

That's right.

So it allows them to show their client a fence right in their yard.

Oh, fence contractors, not defense contractors.

I was like, those are wildly different things.

One people are blowing up fences.

The other person are building them.

Good to know.

All right.

Yeah, we're trying to cross country lines.

All right, so we got fence contractors.

All right, you built an app for them.

All right, there's an app for that.

What's revenue?

About half a million a year.

All right, 500K per year.

What's revenue retention?

Our churn's about like 8% monthly.

Ooh, that's high.

That's high, okay.

8% a month.

All right, that's pretty high.

All right, what's the price?

It's $199 a month, cancel anytime.

And for two users, like five users, it's $2.99 a month.

Okay, got it.

And so what does this app do?

So it actually allows them to show their client a fence, like right in their yard.

It's like the dream outcome on the value equation.

Yeah, yeah, yeah.

Put it right into their yard.

Yeah, it's a sales tool.

Yeah, yeah, exactly.

Okay, so why are they churning?

So really like our biggest thing is if they don't use it

and like sell a fence within the first 10 days, they churn.

If they actually go out and we hear them sell a fence, they literally love the product and it's very rare that they can't.

Okay, how do you get leads right now?

We'll cover that in a second.

How do you get leads?

So we run Facebook ads.

Okay.

Instant form.

We have a couple of questions up front.

And our automation puts them right into our CRM.

And we reach out right away.

Yeah, what's CAC? About $130.

Damn.

CAC?

Not lead?

Not CPL?

CAC?

Cost of our customers?

$130?

Like, when we hit, like, a really good ad, our cost per lead is like $1.50.

That's absurd.

Hit one that was crazy.

That's insane.

I would not get used to that because it will not stay there.

That is insane.

I do a lot of the sales personally.

So right now I'm not paying a commission, which really helps.

Yeah, well, yeah, that's nice, right?

When you do things yourself.

Okay, so I mean, LTV to CAC is still fine, but this is what I want to encourage you to do.

Do not scale your ads at all until you fix this churn issue.

There's no point.

You're just going to pour it out the back.

There's no point.

Zero point whatsoever.

Like, you want to be able to figure out what activation is.

Now, if you know that they sell a fence, right, with the thing, they stick, right?

We know this.

Yeah.

Okay.

So then the question is, how can we incentivize them or how can we make it easier for them to have that happen faster?

So what do you, do you charge $199 up front for this?

So we do like a 10-day trial with like the credit card attached.

Like, we say like, you know, it's how we've always done it.

if you don't like it in the first 10 days, you can cancel.

Yeah.

Dude, I think it's a trial issue, dude.

Yeah.

That also includes during the trial the 8%.

So it might be lower once someone actually converts to a client.

Yeah, I see what you're saying.

The pie equation, our hypothetical max might be too low.

Yeah.

Well, you do need to figure out what the post-conversion churn is, not total churn, especially if you're smaller,

you factoring your trials and churn is going to mess all your numbers up.

100%, yeah.

100

Okay.

101

So I'll say this.

102

So you go through the money models book already?

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Yep.

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So the free trial with penalty would be the first improvement that you could make to this.

105

That's like the smallest operational change that you could do.

106

The second level of it, yeah, that's free trial with penalty, you could use that as a front end offer instead of a downsell offer,

107

and just say, like, we will give it to you for free as long as you XYZ, right?

108

So you have to use it.

109

Right.

110

Like, if you go out and sell someone a fence right in their yard, it's free for the first 10 days.

111

Well, you're already doing that, so there's no reason for them to do it.

112

You know what I'm saying here?

113

Okay.

114

Yeah, I see what you're saying.

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You have to have a penalty associated with it.

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That's option one.

117

Okay.

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Option two is that you charge them up front

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and then say I will rebate you the $199

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if you use the app to put it in at least two people's yards or three people's yards, whatever the average.

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Let's say they close 30%.

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Say like if you do three yards in the first 10 days where you put the fence in, I'll rebate you back the $199.

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And I'll tell you why I'm doing it because I know that if you do it, you'll stick.

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Let me just show you my cards because as soon as you use the tool, you'll make more and you'll never leave so I'm gonna incentivize you to use it.

125

I think what you're saying totally okay.

126

Cool so just make the second month free.

127

Okay so we literally just charge $199 up front if they use it two

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or three times we can give them their money back right there.

129

Right well you don't need to give them their money back just don't build the second month build the third.

130

Okay yeah that makes sense okay.

131

Yeah that would be it like we just have to incentivize activation because if You can get your churn down to like, because you need to be at 80 plus percent per year

132

or higher for this to be something cool 100 yeah 100

133

that's all you have to do just get it to 80 a year

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so you want to be at like less than 2 a

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month i know it's got to be yeah it's got to

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be like closer to 1 a month all right i'm a man on a mission i'll make it happen okay

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and i I want you to do this though.

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Measure the churn from trial, basically don't even look at churn on the front end, look at conversion rate, and then post conversion rate measure churn.

139

That's what you should be looking at.

140

Okay, so like only measure the churn once they've actually converted into a supply chain.

141

Right, yeah, and your true CAC, I'm guessing now, because it's costing you 130 bucks to sign up a trial, right?

142

I gotta look at it closely, but I'm pretty sure it's something like that, yeah.

143

Yeah, so, and then let's say it's one out of three trials convert, I don't know.

144

It's something like that, yeah.

145

Yeah, so your actual CAC is closer to 500, not 130.

146

Okay.

147

Cost to acquire a customer, not a trial.

148

I think it actually is 130.

149

It is around 130.

150

Okay.

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Like right now, say we get 100 leads, I'll sign about, you know, eight of them on a trial and we'll get like three or four or something like that.

152

Okay.

153

Okay.

154

Yeah.

155

But yeah, I would go rebate, second month free.

156

They bill, you know, you bill them up front.

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It'll also get them way more likely to commit to it.

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Also, with $200, you can be on call if they have any issues tech-wise.

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100%.

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To make sure they can see it.

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Sign someone up.

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We're like BAMFAM, like right to an onboarding.

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Great. So we do that.

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We go right into an onboarding, teach them how to use it.

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And then, honestly, once we get them, they place the fence right in.

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Yeah, word.

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So all your effort is activation, dude.

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That's it.

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All the effort, all the incentive goes there.

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Once you have that, the rest of the machine works.

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100%.

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تدريب Shadowing: I built an app and no one's using it - تعلم التحدث بالإنجليزية عبر الفيديو

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