Stop Buying Customers. Buy Customer Profiles. Insight From The Founder of PetFlow.com
PetFlow.com sells pet food, via a subscription, to pet owners. I’ve never been a fuzzy wuzzy warm hearted pet guy, but I do know that those who own pets often treat their pets like family members and their pet’s food is VERY important. PetFlow’s got a great thing going.
Alex Zhardanovsky, co-founder of PetFlow.com has lots of experience in online marketing and he’s using this experience to drive huge sales and profits for PetFlow.com. Priot to PetFlow.com he founded (and sold) advertising network, AdZoogle.
After he sold AdZoogle, Alex and his business partner were looking for their next business venture – hence PetFlow.com started in 2009. They’re gaining thousands of new customers per month and he has over 300,000 Facebook fans.
During our discussion I learned a lot:
1. On Facebook people don’t want to shop – they want to converse, have fun, engage. Stop selling to them.
PetFlow gives its customers and prospective customers what they want, highly engaged – funny photos and more.
2. The second and MOST important thing Alex taught me is that instead of using online advertising to SELL to customers, spend less money and use online advertising to IDENTIFY customers.
For example, PetFlow will create online advertisements that simply asks the viewers to “like” their Facebook page if they have a cute pet. Instead of asking for a hard sale, this tactic IDENTIFIES to PetFlow that this person has a pet. Other, similar questions can help PetFlow identify potential customers. Once a user clicks to PetFlow’s Facebook page or other properties, PetFlow is then able to use retarget advertising to ensure this person is repeatedly delivered advertising focused on them as a pet owner. For PetFlow’s 300,000 fans, remember, there is no selling it’s all about engagement. Over time, all PetFlow needs is a small percentage of those Facebook fans to buy from them.
3. In addition to knowing how much it costs you to get one paying customer, you also need to know, which many small business owners do not know, is how much it costs to get one customer to visit your web site, like your Facebook page, sign up for your email newsletter or some other action. Getting them to express interest in you is much cheaper than getting them to buy from you. Once they express interest in you and they buy from you, it’s much cheaper to get them to buy from you – as you’ve alreadyidentified them.