Chiro Mousetrap Breakdown | Ep 243

Summary

Summary of "Chiro Mousetrap Breakdown | Ep 243"

Podcast Information:

• Title: The Game with Alex Hormozi
• Host: Alex Hormozi
• Episode: Chiro Mousetrap Breakdown | Ep 243
• Release Date: October 9, 2020

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In Episode 243 of "The Game with Alex Hormozi," host Alex Hormozi dissects a successful marketing strategy employed by a chiropractic business, referred to as the "Chiro Mousetrap." This episode provides a deep dive into how nuanced adjustments in offers and funnel management can significantly enhance customer acquisition, retention, and overall profitability.

1. Introduction to the Chiro Mousetrap

Alex opens the discussion by highlighting the importance of small tweaks in making a business model highly successful. The focus is on understanding the intricacies that drive exceptional performance in the chiropractic sector.

[00:31] Alex: "So what I want to break this down for you... understanding the mousetrap behind this I think will make you guys and your clients a lot of money."

2. The Core Offer Strategy

The primary offer involves a free body scan, a rebranded version of a free assessment. This offer is strategically separated from the paid consultation to add value and pre-qualify potential clients.

• Ad Spend & Lead Generation:
  • $1,200 spent on advertising.
  • 196 leads generated through a funnel.
  • 126 leads (65%) scheduled appointments.

[01:03] Brad: "So that's 65% to schedule."

• Show-Up Rates:
  • 100 out of 126 scheduled leads showed up, resulting in a 51% show-up rate.

[01:12] Alex: "51% showed up."

3. Financial Breakdown

From the 100 show-ups:

• 64 individuals opted for the paid $130 consultation.
• This generated $9,000 upfront before any back-end sales.

[03:26] Alex: "Which ended up being 64 people decided to pay for the in person visit."

4. Strategic Tweaks for Enhanced Success

Alex underscores several key strategies that contributed to the Chiro Mousetrap's effectiveness:

• Separation of Offer Components:
  • Free Scan: Positioned as a $260 value offered for free.
  • Paid Consultation: Introduced as a $130 fee, requiring a credit card on file to secure the appointment.

[05:22] Brad: "They gave the scan away for free, but charged for the assessment of the scan."

• Maximizing Show Rates:
  • Scheduling via phone calls rather than lead ads resulted in higher engagement and show rates.

[04:27] Brad: "And when they closed them, they didn't get charged the 130."

• Pre-Qualifying Customers:
  • Requiring a payment commitment upfront ensures that only serious clients proceed, enhancing the likelihood of purchasing higher-value packages.

5. Case Study: Tim's Implementation

Alex praises Tim, a newcomer to the chiropractic field, for successfully applying the Chiro Mousetrap strategy without preconceived notions, leading to favorable outcomes.

[04:07] David: "Tim was new into the chiro space... he followed the playbook and so he."

6. Optimizing the Funnel

Alex addresses common misconceptions about funnel effectiveness, asserting that failure often stems from inadequate optimization rather than the inherent ineffectiveness of funnels.

[07:57] Alex: "Are you fucking kidding me? Of course they work. You just aren't good at them."

7. Financial Projections and Scalability

The strategy demonstrates impressive scalability:

• Initial Revenue: $9,000 from consultations.
• Potential Back-End Sales: If 30% purchase a $2,000 package, that leads to $49,000 in additional revenue.
• Return on Ad Spend: From a $1,200 ad investment, the business could potentially earn $50,000, showcasing a substantial ROI.

[07:31] Alex: "And they made conservatively 50 grand."

8. Best Practices and Recommendations

Alex offers actionable advice for professionals in the service sector:

• Separate Free and Paid Services: Enhance perceived value and filter serious clients.
• Optimize Scheduling: Use phone calls to maximize availability and convenience.
• Invest in Funnel Optimization: Continuously refine offers, copy, and targeting to improve performance.
• Pre-Qualify Clients: Ensure that every lead has a baseline financial commitment to increase the likelihood of high-value purchases.

[09:24] Brad: "So you can make your irresistible offer independent from what you want to charge."

9. Overcoming Challenges

Alex encourages resilience and continuous improvement, emphasizing that perceived failures with funnels or marketing channels often result from a lack of expertise rather than fundamental flaws.

[07:57] Alex: "You just aren't good at them. You know what I mean? It's kind of a ridiculous thing to say."

10. Conclusion

Alex wraps up by reiterating the significance of following proven playbooks and making strategic adjustments to business offers. The Chiro Mousetrap serves as a blueprint for maximizing profitability through intelligent marketing and operational tactics.

[10:25] Alex: "They used them schedule and did a phone call because he knew they had max availability..."

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Notable Quotes:

• [01:03] Brad: "So that's 65% to schedule."
• [01:12] Alex: "51% showed up."
• [03:26] Alex: "Which ended up being 64 people decided to pay for the in person visit."
• [05:22] Brad: "They gave the scan away for free, but charged for the assessment of the scan."
• [07:31] Alex: "And they made conservatively 50 grand."
• [07:57] Alex: "Are you fucking kidding me? Of course they work. You just aren't good at them."

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Key Takeaways:

1. Strategic Offer Structuring: Separating free and paid services can enhance perceived value and filter committed clients.
2. Funnel Optimization: Effective funnel management leads to higher lead conversion and show-up rates.
3. Pre-Qualification: Requiring upfront financial commitment ensures that only serious prospects engage further.
4. Scalability: Thoughtful marketing strategies can yield significant returns on modest ad investments.
5. Continuous Improvement: Regularly refining marketing tactics and offers is crucial for sustained business growth.

By implementing the Chiro Mousetrap strategies, professionals in the service sector can significantly boost their customer acquisition, retention, and overall profitability.

Transcript

[Alex]

Now here's what's interesting about this and I'm going to try and point out.

[Brad]

The nuggets and the wrinkles of what.

[Alex]

Small tweaks make this thing super successful. All right, one is welcome to the.

[Chris]

Game where we talk about how to get more customers, how to make more per customer and how to keep them longer and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe.

[Alex]

What's going on, everyone? Happy Thursday. Hope you guys are starting your ending your week off, but starting your day off with a good vibe. Alright, so what I want to do is break down a Cairo mousetrap. And the reason I want to break.

[Brad]

This one down is that I've seen.

[Alex]

A handful of you guys who are running Cairo or running professional type services.

[Brad]

So this would apply to anything that.

[Alex]

Has any kind of medical service. Just understanding the mousetrap behind this I think will make you guys and your clients a lot of money. So first things first, I'm going to start with the offer. So the offer that generated this was off $1,200 of ad spend. They generated 196 leads through a funnel and they got 126 to show.

[Brad]

So that's 65% to schedule.

[Alex]

Excuse me.

[Brad]

And of the 126 that scheduled, 100 showed. All right, so they had 51% of all leads that showed up. So double the lead cost is what.

[Alex]

The ad spend per show was.

[Brad]

All right, those are good numbers.

[Alex]

51% showed up. Now what I want to do is break this down for you. And from that they were also able to make $9000 upfront before selling the 2k backends.

[David]

Alright.

[Alex]

Which ended up being 64 people decided to pay for the in person visit. So I'm gonna walk you through this. So first things first, they offered a free scan, a free body scan. Alright, now that's just a sexier, different way of saying a free assessment. Alright, now here's what's interesting about this and I'm gonna try and point out.

[Brad]

The nuggets and the wrinkles of what.

[Alex]

Small tweaks make this thing super successful. All right, One is instead of saying assessment, which everyone's saying, right, they said it was free to get this type of scan, right?

[Brad]

But what they did is they separated the scan and the technology and the software from the cost of a consultation.

[Alex]

And a visit, right? And so what they said was this scan is normally $260, but it's free. And so when people would opt in through the Funnel, Right, Note through a funnel, not the lead ads. They would then opt in and schedule.

[Brad]

And when they got on the phone.

[Alex]

And it said for a 30 minute consult before your free scan.

[Emily]

Right.

[Alex]

And so when you get on the phone they say they would position the.

[Brad]

Offer as saying, listen, this is normally a $260 scan.

[Alex]

We'll do it absolutely free. The machine and the software is very expensive. We'll do it absolutely free.

[Brad]

Now normally every first visit is $130.

[Alex]

You don't need to pay now. I just need a card on file to make sure that you're going to show up for it.

[Brad]

Alright, so we have a $50 no.

[Alex]

Show fee, but the appointment is $130 for your first visit.

[David]

All right?

[Brad]

Now they were able to sell 64.

[Alex]

Out of 100 people that showed up on the phone call for this $130 first appointment. The reason this is important again, second little nugget here.

[Brad]

So first is that they made it.

[Alex]

A free scan and they separated it from the first assessment.

[Brad]

Second, they positioned the scan as a.

[Alex]

$260 thing that was given away for free, so there's more value. Third, when they closed them, they didn't get charged the 130. They said, I just need your card. Your first appointment is $130 and when you get here and you do it, we'll charge you. Then we change your card for a no show fee, which is 50 bucks.

[Emily]

Right?

[Alex]

And so by doing this, they position the appointment and then that basically makes every single one of these people $130 sales at minimum.

[David]

Alright?

[Alex]

Now from those 64 people that they close, they closed them on the $130 first consult. So this isn't a $19 first consult. This isn't a $29 first consult. This is $130 first consult.

[David]

All right?

[Alex]

And so when these people came in, now all 64, those people now have $130 they're already paying for the service. So this, this Cairo already made $9,000.

[Brad]

Before the back end sale, before the.

[Alex]

Lifetime value of the customer, before selling any product.

[David]

Right?

[Alex]

And so this is the key of making like if you guys want to succeed and you want your clients to succeed, follow the best practices.

[David]

Alright?

[Alex]

So I'm giving shout out to Tim here because Tim was new into the chiro space, he hadn't really done it. And so unlike many of you, he didn't have preconceived notions about what he should do or what was working for him. He followed the playbook and so he.

[Brad]

Didn'T drive it straight to in person.

[Alex]

He drove it to a phone call because he knew. Because what we told them is that.

[Brad]

Phone calls work better for most of.

[Alex]

Those people because you can have max availability. What else did he not do? He didn't use lead ads because he saw that when he used the funnel. We know that we get two and a half times more people to show. Now, specifically for him, he got 51% of his leads to show. Now, if you compare that to the throughput that many people are getting, you know, 10%, 12%, 15% in those specific niches, trying to go straight to in.

[Brad]

Person and ask them to do something.

[Alex]

Else, it doesn't work because what happens, they'll get on the phone, they'll tell them to cancel that appointment, and then they'll set another one.

[Emily]

Right.

[Alex]

And so then you get cheated out of the shows that you're actually generating.

[Emily]

Right, right.

[Alex]

So this is like follow the playbook.

[David]

All right?

[Alex]

And so I just want to, I want to outline this for you because some of you are trying to figure out a way to make more money for your customers or you should be with the mousetrap. The key thing here that he did was he was able to separate with.

[Brad]

The free thing they were giving away.

[Alex]

Free is stronger than discount, but separate.

[Brad]

It from the other service that there was being rendered.

[Emily]

Right.

[Alex]

A scan is one thing, the assessment is another. And so they gave the scan away for free, but charged for the assessment of the scan. A scan means nothing without the professional eyes that can provide value from it.

[Emily]

Right.

[Alex]

And so that was the, that's the, that's the switch.

[Brad]

That's the magic here. And so now every one of these.

[Alex]

Shows $130 customer, and the likelihood of getting one of those people to buy a $2,000 package is significantly higher. And you make that argument for a chiropractor. It's like, listen, if someone's not willing to pay $130, they're not going to.

[Brad]

Buy a $2,000 package for me.

[Alex]

They're not going to be a good customer. So let's just weed those people out on the phone beforehand.

[Brad]

And that's okay, because rather than wasting.

[Alex]

Your time, you're just having your secretary weed those people out ahead of time.

[David]

Right.

[Alex]

These aren't hard sales.

[David]

Right.

[Alex]

And so point here is that he scheduled them four phone consults. He used the max availability from the, from the front desk. They closed them and had, you know, whatever 100 of 126 shows. So like 84% show something insane, right? Because it was convenient and the times worked for them and they were scheduling them in that way.

[Frank]

Hey, guys, love that you're listening to the podcast. If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff, sometimes it can help hit the brain centers in different ways. You can check out my YouTube channel.

[Alex]

It's absolutely free. Go check that out if that's what you are into.

[Frank]

And if not, keep enjoying the show.

[David]

All right?

[Alex]

And so if you want to build a mousetrap like this, think about the.

[Brad]

Other offers that you can layer into this.

[Alex]

Because they were already able to make, you know, off $1,200, they made it almost nine to one, right? Close. They made nine to one before they sold the $2,000 packages, right? If you have 64 people, even if they suck ass, all 64 of these people now have $100, $130 show up rate, right? Or show up fee, essentially. And if 30% of them were sold, which is like the average, then they would make 20 sales at $2,000, right? So they'd make 49,000 on $1,200 of ad spend. And you could easily get for the hundred shows that you generated, your 99, your 129, your whatever on those, right?

[Brad]

And so then all of a sudden.

[Alex]

All in, they paid you 10, they paid Facebook 1,200. So they're 11, two. And they made conservatively 50 grand.

[David]

All right?

[Alex]

Like that's the game that we're talking about here. And so if any of you guys saw the post that Tim made about how he had his funnel set up, I'd highly encourage you.

[Brad]

Look at the funnel, right?

[Alex]

He sold some of the benefits of the thing, and the opt in was actually at the bottom of the page, so people actually had to be a.

[Brad]

Little bit more qualified.

[Alex]

His average cost per lead was 14 bucks, right? And so for many of you, it's not that. I heard someone say to me via messenger, they're like, funnels didn't work for us. It's kind of like your client saying that Facebook doesn't work for them. It's like, web pages don't work for us. It's like, like, are you fucking kidding me? Of course they work. Like, you just aren't good at them. You know what I mean? It's kind of a ridiculous thing to say. Of course they work. You need to get better at it. You need to optimize, you need to make a better offer. You need to make better copy. You make more compelling benefits that are going to resonate with that person. And so anyhow, I say all that to say there's always a way. Sometimes you have to split some little details out that can make the whole mousetrap work. So, so anyways, hope you guys are having a good Thursday for anybody who's in the professional services space. All right, so that's physical therapists, dentists, Cairos, whatever. For many of you, the thing that's going to dictate what type of appointment you are selecting is the availability of the type of appointment.

[Brad]

If they can give you full availability.

[Alex]

For walk ins, then by all means do it in person. If they cannot, then you have to use it off the front desk or.

[Brad]

This will not work.

[Alex]

This game won't work, I'm just telling you. And it's not going to work with anyone else either. Like they have to make these, they have to make these changes in their.

[Brad]

Business and they have to listen to.

[Alex]

You because you're a performance partner, right? You're not asking for a retainer.

[Brad]

And if they're not willing to do.

[Alex]

That, then they cannot be a customer, right? And you have to confront that on the sale. So big picture, if you can find a way to separate the two things.

[Brad]

So you can make your irresistible offer independent from what you want to charge.

[Alex]

Someone, you're going to already pre qualify customers. And then every single person who comes.

[Brad]

In the door they already know is.

[Alex]

Worth 100, 150, $200. Then all of a sudden they're able to make significantly more. And I think what made that sale easy was saying, I'm not gonna charge you right now.

[Brad]

I just need a card for a no show.

[Alex]

And when you show up, it's gonna be $130. If you don't show, it's 50 bucks, right? And so that way by doing that, they ended up getting the card and making sure that every single person who.

[Brad]

Walked in the door is already worth.

[Alex]

$130 before anything even happens, right? And that's the beauty of this whole thing, right? And so as soon as the person comes in, boom, you bill them and then they have their first consult. You second set the second sale where you go through the actual, you know, package sale that's, or the treatment plan that's going to go with this and then pre sell them on, you know, 30, whatever sessions at 50 bucks or 80 bucks or whatever. You know what I mean? It doesn't matter. And so anyways, that's, that was the Mousetrap. And that was the little tweak that he did. The first part was that he followed.

[Brad]

Instructions and used a funnel and had.

[Alex]

Them schedule and and did a phone call because he knew they had max availability that way. But the back end tweak was that he separated the free offer from getting them to buy and value that front end thing. And it didn't make it a hard sale because they didn't have to actually close $130 on the phone. They said it's normally 260 for the scan and it's $130 for the thing. So normally this is $500 alright. But instead the 260 is on us and it's only $130. You don't have to pay for it now, it's just once you come in, right? That's it. Now you do that after you get the card of the no show, right? And then you're good to go. So anyways, if you did reach out to Tim, I would highly recommend doing that. If your numbers are not at 50% of leads showing, then I would suggest that you model the process that he did. And that is all I got. So have a good Thursday. Hope you guys are crushing life and I'll catch you guys soon. Bye. Foreign.

[Frank]

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