Transcript
WEBVTT
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Yeah,
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welcome back to BTV Growth. I'm Leslie
Cruise with Sweet fish Media today. We
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will be continuing our deep dive into
demand generation and I'm so excited to
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have column, I will joining us today
column is a sustainable growth
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evangelist and as a member of the peak
community over on linkedin. And if
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you're not familiar with the peak
community, it is a private community of
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the best marketers and marketing
leaders to connect, Learn from one
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another and get at least one better
each week. So clean. Thank you so much
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for joining me today. Thanks Leslie, I
really appreciate it. Excited to have
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you here. We talked so much just now in
our pre call and I'm so excited to dive
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in. You said so many good things in the
recall so on linkedin you share a lot
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about sustainable growth and you posted
something recently that said something
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along the lines of sustainable growth
comes from replicating sustainable
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relationships that appreciate in value
and from what I've been learning into
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my deep dive into demand generation. It
seems like this quote is relative to
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what I believe demand generally is. So,
can you just talk about sustainable
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growth and how that incorporates into
demand generation? Yeah, for sure. So,
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you know, you you basically have, I'm
gonna frame it this way. You have
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gratitude and you have ambition. You
have ambition to multiply your customer
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base and grow the size of your business.
And you also have gratitude to
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appreciate for appreciating the people
who you already served. And the way you
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navigate those two things is going to
determine whether you are playing
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explosive growth or sustainable growth,
right? So in sustainable growth
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philosophy, we're prioritizing
gratitude for the people we already
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serve. And then on top of that we layer
the multiplication, right? And we have
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that ambition to grow the business. So
it's a natural human instinct. This is
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deep, this is like at the core of
humanity and the trap we fall into and
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I call it the acquisition track
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the acquisition trap which is to
prioritize explosive customer
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acquisition and usually unknowingly
experienced, diminishing returns over
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time, diminishing profitability,
diminishing traction. So there is a
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confusion going on that you can
explosively acquire customers and that
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that is a sustainable activity as
opposed to something that you time.
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Yeah, that's really interesting. And I
think another thing I wanted to touch
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on with you was marketing is constantly
evolving, constantly changing. You
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talked about this a little bit, but can
we kind of discussed together the three
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levels of growth ideology? Um, I know
you talked about this a lot on linkedin
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and kind of there's all of these terms
flying around, you know, the funnel,
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the flywheel, the ram engine. And I
want to know, can we dive into each of
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those and kind of where demand
generation fits into each of them. So
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this is very interesting. So, let's
just start with the funnel, right? Our
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old friend, our old friend, the funnel.
So the funnel is 100 focused on turning
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strangers into customers. Simple,
attention, interest, desire, action.
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Classic, Right? But it completely
ignores lifetime value and replicating
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sustainable relationships to me. That's
very delusional, you know, very
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delusional to think that you can
acquire and that's going to be your way
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of growing, right? Right? So now we
move on to that to the next phase,
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which is, which is flywheel,
particularly the inbound marketing
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flywheel right from hubspot, which is
attract, engage in delight. Mhm. That
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model is 100 focused on turning
strangers into promoters,
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paying promoters. Right, And that is an
improvement. That's a massive
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improvement over the funnel, in my view.
However, however, there is a confusion
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going on that was designed as an
inbound marketing model. Mhm. Not as a
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sustainable growth model for the
business. So if you actually look at
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what hubspot is doing,
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you'll realize that
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sure there fly wheeling of course. But
there's another thing they're doing
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which is ramage it, but they don't tell
you that because they haven't been able
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to describe it for themselves. Mm hmm.
So if you look at their curve, their
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revenue growth curve, you will see,
first of all, you'll notice that
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they're one of the best employers, they
were the most popular places to work.
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So they're focused on retaining and
appreciating their employees. Right.
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The second thing is that they're
actually trying to produce multiplying
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value for their best customers. So they
are introducing new dream solution
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every so often to keep increasing the
LTV and keep pulling people towards
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greater success. But none of that is
described in the flywheel. So the
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problem is that now that hubspot has
transitioned all the way to a Crm,
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they're now kind of, their narrative
has evolved, they're now framing that
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as a focal point for departmental
alignment. We can align our sales
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marketing and customer success around
the flywheel problem is the flywheel
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was an inbound marketing model, not not
a sustainable growth model or an
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alignment model. Right? So I don't I
don't I don't know if someone else
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hijacked that and then people started
adding things to their flywheel, I
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don't know exactly how that's going on.
But what I do know is that the flywheel,
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the inbound marketing flywheel is
really a go to market type of strategy.
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The good part about it is that it
assumes that you don't know who your
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ideal client is, right. It's basically
a process of finding out who can become
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a paying promoter. But once you've
realized who these people are and who
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you really want to focus on, you need
to change that methodology and flip it.
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That's what IBM is for mm To flip it
and start the journey of RAM. Yeah,
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appreciate multiply Abyan. You're
trying to multiply not just acquire a
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bunch of people and try to turn them
into who you want them to be. Mhm.
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You're a B. M. Is assuming that
basically we have less influence and
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control and people think we do. It
assumes that we have to choose the
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right person and that if it's the wrong
person, no matter what, no matter how
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we try to set expectations and no
matter what our deliveries like there
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is inevitable churn which usually gets
customer successes. He takes the blame
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for that. Yeah. When it's actually
marketing and sales fall a lot of times.
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Not always. But that's interesting.
That's an interesting take. Why do you
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think that is? Well, to be honest with
you, I think that that is happening all
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over the world in romantic
relationships. I think it's happening.
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No, it is because people, they say
what's wrong with me? All my customers
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success must suck. Mhm. I must be
terrible in relationships. No, no, no.
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You are attracting the wrong type of
person and you're setting the wrong
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expectations. That's good. Which is
manifesting itself down the road. But
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because you can't do direct attribution
to that, you think it's your customer
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success or your service, your product,
which sometimes it is the case.
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Sometimes you do have a delivery
problem, but I find that most really
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well intentioned companies are having
trouble getting the fit. So interesting,
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very interesting. That is very
interesting. And it's interesting you
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brought up, you kind of brought up A B.
M. And how, and I feel like you were
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kind of leaning into this, but correct
me if I'm wrong in this model that, you
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know, I want to talk to you about your
client replication bullseye. You kind
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of put demand generation and a B. M.
Under brand marketing or inside of
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brand marketing. And so are you kind of
saying that A B. M. And demand gen
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really work together?
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Is that kind of what you're leaning
into? What I'm basically saying, I'm
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making a stand about brand based on my
sustainable growth principles. I said,
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well, in sustainable growth philosophy,
every dollar that we extract from
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marketplace needs to increase our brand
equity, Which means that everyone else
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you had to advertise to, to get that $1
needs to get uh, some needs to get
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really good value. Yeah. Or else you
are decreasing your brand equity over
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time and you're going to fall on the
acquisition track. So this is why I'm
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forcing everything to be centered
around education. I use the word
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education, education for demand
generation and account based marketing.
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If someone wants to come up with a
different one, that's a lead generation
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model or a demand capture model, they
can do that. But this isn't about that.
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This is this is about growing the
demand. Mm right? Not about capturing,
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This is much more in line with the
inbound philosophy because it has
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nothing about converting people, right?
Because I don't think people need
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advice on that. And I'm not an expert
at that either. But I think people need
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to avoid the trap of not educating
enough. So if you put everything under
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brand marketing, it forces you to
realize that everything is brant. Yeah.
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Everything when you're doing a B. M.
It's brand. When you're doing demands
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and it's brand when you're doing brand,
it's brand right to me. So why do you
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feel like this model is so interesting
to me? Because I feel like for some
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reason, demand gen gets kind of a bad
rep with followers at A B. M. So I've
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like, I've heard several A. B. M.
Marketers claim I hate the term demand
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generation. Uh, it doesn't exist. It's
not actually a thing. So why do you
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think that is? Why do you think that A
B. M. And demand gen kind of butt heads
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a little bit? Yeah. So obviously, you
know, I disagree with that A B. M. Take
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and I would disagree with demand gen
people who say IBM that's not a real
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thing. That's just really good demand
yet, right? Because you hear the
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opposite and I think that the
frustration for the A. B. M. People
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just comes from seeing poorly executed
demand gen In B. two B specifically in
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the sense that companies are trying to
maximize the number of leads they get,
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they're trying to maximize the number
of new customers that they get and they
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have a disrespect for lifetime value,
for profitability, for customer success,
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right? They think they are the growth,
but it's like no, the whole team is the
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growth. And so I think A B. M. People
are just frustrated with the with the
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quantity over quality that's been
happening in demand yet and that's
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valid. However, I also want to point
out that I think that a lot of A B. M.
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People while they criticize that are
falling into the same trap, they're
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like we we came up with this whole new
category A B. M. And you know, demand
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gen isn't really a real thing, but what
we're gonna do is we're going to do
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personalization at scale using a bunch
of Martek software, that's all the same.
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You come back to crappy demand gen now.
So you know, you're both of those roads
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can lead to bad places if you're you're
thinking process isn't clear. You know,
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you don't actually understand how this
is going to affect the business and
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affect revenue and profitability and
the happiness of your team. So I think
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that the beauty is that demand gen and
A BMR actually harmonious, just like
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brand marketing is harmonious with
those two. The conflict is I think a
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big confusion because people have been
defining these things in silos instead
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of all together in one model. So I
think I think that it's always good to
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put things in context before you try to
make definitions or else you end up
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with something that usually doesn't
work very well. Hey everybody Logan was
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sweet fish here if you're a regular
listener of GDP Growth, you know that
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I'm one of the co host of the show but
you may not know that. I also head up
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the sales team here at Sweet Fish. So
for those of you in sales or sales ops
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I wanted to take a second to share
something that's made us insanely more
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efficient lately. Our team has been
using lead I. Q. For the past few
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months and what used to take us four
hours gathering contact data now takes
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us only one where 75% more efficient
were able to move faster with outbound
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prospecting and organizing our
campaigns is so much easier than before.
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I'd highly suggest you guys check out
lead I. Q. As well. You can check them
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00:14:17.230 --> 00:14:24.590
out at least I Q. Dot com. That's L E A
D I Q dot com. All right. Let's get
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back to the show. Yeah. Yeah. I was
gonna ask you to define demand jin but
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you've kind of done it with this model
here. Yeah, for sure. And I mean look I
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mean chris walker talks about this all
the time. Word of mouth. Word of mouth.
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Evangelism. Word of mouth. Evangelism.
Word of mouth. Evangelism. Right?
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There's a reason why end brand
marketing with surrounds your ICP with
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word of reward of mouth evangelism and
I demand generation with surrounds your
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dream accounts with word of mouth
evangelism, right? So people, when you
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treat everything is brand as subsets of
brand. You end up creating that word of
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mouth evangelism. Whereas if you think
that demand generation is not a subset
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of brand marketing, what do you do when
you fall into bad behaviors? Quantity
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over quality is what you end up doing?
Mhm. Automatically. 100%. And how, you
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know, within this brand marketing, how
do you define success? Well, that's a
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good question. So here's the thing is
this is a big issue for marketers
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because now we're getting down to like
attribution in a sense, it's hard. Like
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I told you, you know, there's a problem
with churn happening later on because
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of something because of the way you did
things at the beginning. How do we how
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do we show that that's actually what's
happening? You know, and there is a
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certain level of just logic and
understanding that's required the Ceo
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wants you to show him perfect, perfect
data that's going to tell him exactly
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what's going to happen in three years.
I just think that person doesn't
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understand reality very well. You know
you have to have a certain amount of
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faith in education, you have to have a
certain amount of faith that in your
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narrative you have to have a certain
amount of belief where it's like no I'm
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standing for this thing, it's the truth,
I'm standing for truth. And once you
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start standing for truth in that brand
marketing instead of trying to persuade
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everyone to buy things start to flow a
lot easier, things start to flow a lot
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easier. And what I noticed is that most
brand marketing and most companies kind
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of hide away the value. Usually they
wait to educate, qualify and set
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expectations all in a very short period
of time. This is where the concept of
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lead forms came from. It was like hide
the value away and then we'll qualify,
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set expectations, uh, you know what I
mean? And make sure this all works
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right? And then people are end up still,
they're still trying to gain trust from
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their clients after their clients. It's
like we haven't gained their trust yet.
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Well, that's a problem. If you're
spending your time trying to gain their
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trust after they're already paying you,
you're not spending your time actually
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taking them to success. We've got major
problems here, you know, so I'm a big
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proponent of pushing the education to
the top. I hate to use the word funnel.
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People will understand it, push the
education to the top of the funnel,
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right? And what happens is that the
companies that do that end up doing a
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lot of the qualification and the
expectation setting and that infection
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earlier on lot earlier on, which avoids
problems for sure. And kind of last
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question to kind of wrap things up. But
I wanted to kind of get your opinion
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here on if you know, you were running a
small organization that didn't really
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have much of a brand marketing strategy
or a demand gen strategy, where would
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you start? Like where do you even start?
Just kind of from the bottom up? Okay,
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well, I'm a big supporter of category
design and building. Mm. So I think the
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narrative,
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if you don't without that, you're kind
of just spinning your wheels to me.
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So, you know, I think that the first
thing is the narrative, you know, the
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problem and the narrative. And then
after that comes evangelism, and then
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eventually you get to talking about
your specific solution in the beginning,
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you're more talking about the general
solution. So I talk about sustainable
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growth, right? And that's an ideology
that's a methodology but that's not
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actually my service, my services a sub
kind of a subcategory under sustainable
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growth. Okay. You get an infinite
different types of services in that
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category. So I would define the
narrative first. You know, what do you
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really stand for? What's the way of
thinking about things that you are
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certain is the new better way of doing
things in the world? Mm. Right.
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Thinking about things, how do you
operate? But you have to find this, you
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know Andy Raskin type old game new game
thing or else it's just you're not
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really going anywhere, You're not
really going anywhere. So the first
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thing is the narrative. The second
thing is packaging that narrative into
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some sort of consistent evangelism. I
think a podcast is obviously the best
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for that. You're getting you getting
video, you're getting audio, you're
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inviting current customers, past
customers, I. C. P guests, uh
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influencers. And you're creating that
greater sense of community very easily
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at the top of the final or on the
outside of the bull's Eye, as I would
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say, right? Yeah. And then and then I
think the part that I advocate for is
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once you've created this narrative, old
game, new game, you need you need to
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give your audience a way to measure
themselves and start getting going on
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it without you. And that's why you need
a scorecard. You need to turn the new
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game into a scorecard so that people
can measure themselves, become self
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aware of where they're at what their
problems are, and also envision a clear
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picture of what success looks like and
feels like if that happens at the top
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of the funnel, it changes the quality
coming through. This has been so, so
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insightful and thank you so much claim
for joining me. I I really am excited
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to take this back and do some more
research and continue learning and
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really study this, this model that you
have here. And I think this is so
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interesting and I think a lot of people
are going to find this really valuable.
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Where can people find you online if
they're interested in learning more
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about this model, are learning more
about, you know, the number one place
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to find me is linked in. I am always on
linkedin. So you send me a message and
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I'll get back to you real quick. And
then if you are interested, if you're a
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CMO or Emergency M O. Someone who's
super serious about marketing and
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you're interested in having a
supportive community, a collaborative
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community where you can get better
every week. Get in touch with me on
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lengthen and I will get you in there.
All right. I love it. Well, fantastic.
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Again, thank you so much for joining me
here on GDP Growth. I appreciate it.
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Leslie see you.
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Mhm. One of the things we've learned
about podcast audience growth is that
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word of mouth works. It works really,
really well actually. So if you love
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this show, it would be awesome if you
texted a friend to tell them about it.
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And if you send me a text with a
screenshot of the text you sent to your
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friend meta. I know I'll send you a
copy of my book, content based
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00:22:14.570 --> 00:22:18.390
networking, how to instantly connect
with anyone you want to know. My cell
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phone number is (407 490 33 to eight.
Happy texting.
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Mhm.