I have lost count over the past 20 plus years I’ve been doing this type of work, on how many businesses, up and down the country who miss the glaring and blindingly obvious marketing strategy for fast returns.
It’s called the Back-End!
Sales Sitting in Your Business Untapped
Now before you start thinking about your “Rear-End” that’s not where I’m going with this. I’m referring to the tonne, in a lot of cases, of other sales that can, and is sitting in a business, untapped.
All you need do is adopt it. This one strategy, let along all the others you could put to work for your business. Can catapult your sales due North in quick order. Especially if you’ve been suffering like a lot of other businesses have been of late.
Having a second, third, or even a fifth product ready and waiting in the wings for your customers is called a Back-End. And you tend to offer these additional, but related products straight after your customer buys your primary offering.
All depending what you’re selling, and what your margins are will determine whether you make more on the front-end or substantially more on the Back-End.
Money Left on The Table is Never Retrieved
In either case, you earn far more if you adopt a Back-End strategy to your sales and marketing efforts. As I said at the top of this article, I’ve lost count of the businesses who simply don’t put this to work in their business. As a result they are leaving money on the table, each and everytime, a customer bought from them. Money left on the table is never retrieved!
It will cost you 5-15 times as much to win a new customer as it does to correctly serve an existing one. And that same customer is up to 20 times more likely to buy from you again than a first time customer. So the message is clear…
Get yourself moving on the Back-End products you could be offering existing customers and never miss an opportunity to in offering new customers other products as well.
For a moment think about everything you have to do to win a new customer. This list isn’t exhaustive, but you’ll get the idea:
– Advertising (both online and offline)
– Direct mail (Printing and postage)
– Pay sales people salaries or commissions (if you have them that is)
– Cost of telemarketing (either paying staff or a external company)
– All you overhead costs. Labour, materials, stock.
– The time, agony and effort in winning the customer. (getting them to trust you enough to buy)
There’s a load of other things I’m sure you do, but think about it… all this to win one order or purchase!
Do your numbers, and see how much it all adds up to when attracting and winning each customer. I wouldn’t be at all surprised if many actually found that it costs as much, if not more the profit you make from each sale.
Already this is bringing water to my eyes.
Cross And Upsell Related Products or Services
OK, the next step here is to make additional sales to customer you have. You know the ones… customers which you have already bought and paid for with your marketing efforts. You cross and upsell them related back-end products.
Here’s the the thing. Each and everytime a customer buys more from you… the less you have to pay to attract yet another customer. What is happening indirectly? You guessed it, your bottomline is increasing 🙂
But new customers, clients or patients… or whatever you called the people who buy from you, still need to be brought into the business. They are the life-blood of your enterprise after all.
Can you see how a business, your business, can grow and become more profitable with this little tweak of a strategy?
And this is but one of 100’s of different ways you can impact your business from a sales and profits point of view.
Take The Time to Implement
Is there some work to do? Do you have to put a little planning in place to have a successful back-end strategy? Yes indeedy. Is it worth it?
Darn straight it is. But it’s up to you, whether you take the time to implement. As long as you have your other products ready to rock-and-roll, when the first sale happens, really… there isn’t a load of planning to be done.
Let me ask you a question. When do you think is the best time to make that second, third or even fourth sale to your customer?
1 week after the sale?
How about 2 weeks after?
How about this… at the very same time they first made the purchase. Why?
If they are that existed about the decision they have just made. They trust you, they are at their highest point of expectation. Etc… etc… you get the idea. So right from the get-go is the best time. Left longer, a customer will cool off, life gets in the way, they’re firefighting themselves and you get pushed to the back of their minds. Out of sight, out of mind.
Worse case they forget all about what they have done with you and why they even did did. It’s like having to resell them on the idea of using you. The trust element just seems to melt away and you have to start that process again.
What a waste for the sake of asking them to enhance they original purpose, get more value and increase the results they could be getting had they bought your back-end/s.
I do hope you get the point here, right?
When I first started out as a Strategic Marketing Consultant, for an international consulting firm, this was one of the first strategies they had me cut my teeth on. Why? Because they are quick wins. And our clients adored quick wins.
If I was a shoe seller, I would add in laces, shoe polish, shoe clothes, shoe brushes. If I was a menswear store, with the sale of a quality shirt, I’d add in a tie or a number of ties, cuff-links. Bike shop, puncture repair kit, lights front and back, helmet, water bottles etc. There are more example but it make sense doesn’t it?
Whether your business is high-tech, low-tech, slow-tech or no-tech, there is a back-end, or a number of them that you can use to instantly increase sales and profits from the off.
Simple Idea And Takes No Time
As I said at the top of this piece, I’ve lost count, how many business owners just don’t do the back-end strategy bit. It is a simple idea and takes no time. or very little.
For the sake of a question or two at the point of the first sale, all depending on your margins, you can be adding £10’s, £100’s or even £1000’s or more for the sake of a few secs or mins to ask a question or two. And BOOM! instant, additional profit and your serving your customer as they ought to be served.
Now that’s a Win-Win in my anyone’s book.
Here’s the thing. It’s the cold, harsh reality of commerce and competition. If the profit doesn’t go into your pocket, it’ll go into someone else. Period.
In essence, this lovely, customer-centric strategic is an easy and quick way of continually garnering profits from your customer, client or patient. Remember how much you have spent in time and money acquiring them.
When I was in Dallas in 2001 to see the late great Jim Rhon on stage, there were many brilliant things he shared. One stood out for me. He said, when it came to getting on with life, “I’ll take care or me for you, as long as you take care of you for me.” On the same platform was another great. Zig Ziglar.
Take Care of Your Back-End
And he said “If you help enough people get what they want, you’ll get everything you want”. There’s a theme here isn’t there?
Basically, take care of your back-end, and it will take care of you. Give your customers everything they want and they will give you what you want.
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