Referral Business Formula – Step 2 of 3

Customer-to-Tribe Business Formula

Referral Business Formula – Step 2 of 3

Welcome to step 2 in our 3-part series on the Referral Business Formula, or RBF. How to Attract Your Best Customers. 

In step 1 of 3, we showed you how to Clarify Your Message. Leading with “Why” you do what you do, creating your brand story using the hero’s journey methodology, and taking a scientific approach to creating your marketing message. 

If you haven’t read Step 1, Clarify Your Message, we suggest you go back and read it now. Each of the 3 steps in the Referral Business Formula builds on the previous step. And, it forms the building blocks that will help you to grow your business faster, smarter, better.

It’s a framework for helping you acquire more new customers who stay longer, buy more often, and consistently promote your business. 

This simple, yet powerful 3-step process will help you to

  1. Clarify your Message
  2. Create Marketing that Attracts your Best Customers, and
  3. Grow your Business through Best Customers

The Referral Business Formula makes it simple and reciprocal for your best customers to promote you to members of their tribe. These are the new best customers you want and need most. 

Let’s jump right into Step 2, Attract Your Best Customer. It’s all about working harder so that you can work smarter. 

RBF Step 2

Attract Your Best Customer

The Pareto Principle, commonly known as the 80/20 Rule, is a universal mathematical formula that says that in any situation, 80% of results are achieved by just 20% of our efforts. In business, we find that 80% of revenue comes from just 20% of our customers. The following strategies and tactics will help you to reverse the 80/20 rule by helping you put 80% of your marketing efforts toward the 20% of the activities and customers that provide the greatest return on your investment. This shift in focus opens up opportunities for exponential growth. 

Focus on the 20% of your efforts that generate 80% of your results.

80/20 Rule Applied – When you define and categorize your customers into three distinct categories: A Customers, B Customers, and C Customers, it helps you to refocus your marketing messages and efforts for the highest customer lifetime value (CLV).

When employed, the following strategy will make it easy for you to manage and market to each customer group.

  • “A” Customers – start focusing on building high-trust, high-value relationships with current and net new customers in this category. (These are the 20% of current customers generating 80% of revenue.)
  • “B” Customers – start focusing on growing these customers into A Customers. (These are the 60% of current customers generating 15% of revenue.) Just 3% growth across this largest category can generate significant revenue and growth.
  • “C” Customers – stop spending time on marketing to these high maintenance, low-value customers. They represent the greatest energy drain and provide little upside. (These are the 20% of current customers generating just 5% of your revenue.)

Customer Persona Development – In order to make your current A, B, and C Customers real and personal to you and your team, you’ll need to create customer personas/profiles for each. To create customer personas, simply model each of them after actual A, B, and C customers who stand out as the best example of a customer in each category. 

Once you’ve created personas for each of your A, B, and C customers, you’ll want to create custom messaging for A and B customers. Then test your messaging throughout your campaigns for maximum performance. This approach is known as A/B split testing or champion/challenger testing.

Outside Perception vs. Inside Reality
Aligning your Outside Perception with your Inside Reality – Business is easiest explained as having two key functions. 1. Marketing, which can be referred to as your Outside Perception (your website, advertising, promotion, etc.), and 2. Innovation, which can be referred to as your Inside Reality (your products or services, customer service, people, operations, processes, technology, etc.)

Your current customers have already experienced your business’s brilliant inside reality. But your prospects have only your current marketing to rely upon when making a decision to buy from you. 

So, the question you need to ask yourself is: Does your current Outside Perception (marketing) match that brilliant Inside Reality (innovation) you’ve worked so hard to create? If the answer to this question is no, then you’ll want to remedy this situation as quickly as possible.

Your challenge and opportunity: Create an ‘Outside Perception’ (marketing) for your business that perfectly aligns with, and speaks to an Inside Reality (innovations). The goal is to expertly solve your A and B customers’ most pressing and familiar problems.

Then you’ll need to compare that new Outside Perception you’ve created to your brilliant Inside Reality. You’ll want to look for any gaps between what you say you do, and what you actually do, and then work toward closing those known gaps. This exercise often opens upon wonderful opportunities to further innovate your business.

Offer Funnels that Sell – If your website can be described as your storefront, then offer funnels are your outside sales pipeline. They are your strategic weapon for Interrupting, Engaging, Educating, and Offering to solve your A and B customers’ most pressing and familiar problems. They are the magnet that attracts and converts your best prospects into new A and B customers.

Creating and implementing custom offer funnels are your best weapon for leveraging your brand story and messaging strategy to attract and convert your best prospects into new A or B customers. Landing Page, Email Opt-in Page, Lead Nurturing Emails, and Sales Converter Forms–all designed to seamlessly convert your best prospects into net new customers. If you need help in planning, creating, deploying, and managing powerful offer funnels, Talk to our team.


Apply the 80/20 rule to segmenting your customers. Create buyer personas to target your best customers (A and B customers). Align your outside perception with your inside reality. Then create custom offer funnels to attract and convert prospects into your best customers. This part is about working harder so you can work smarter.

Now that we’ve shown you the first step in growing your business on purpose, Clarify Your Message, you’ve now opened the door to your next challenge. How do you attract the customers who need to hear your message the most? In Step 3 of 3, we’ll show you how to Grow Through Best Customers.


Speak to a Tribeify Consultant today and see how we can help you.