Back End Profits – Could You Be Missing Out?
What’s behind your sales process can be more important to your profits than what you offer for sale up front – on your website or in your online store. If you set up the back-end of your business in the right way then you’ll find that your profits will increase – but you could also be losing out on chances for adding more value to your clients and customers – and of course having them pay you rather than someone else for that product or service.
You might hear other business owners talking about their back-end and maybe you’re not quite sure what they’re talking about, or you have an idea but you’re not sure how it applies to you? If this is you then I want to walk you through what it means and how you can take away a couple of ideas for your own business right now.
But what does this mean exactly?
The back-end of your business is the part where you offer your customers and clients additional services after they make their first purchase from you. With an online business or any business where you are capturing your customer details into a database or an email marketing system, it’s really easy to set up.
Once you’ve got a client or customer in your database, and after of course you’ve provided a wonderful product or service to them, then you can offer them other products and services that you might not offer to anyone just ‘walking into the store’ or coming to your website fresh.
If you want to start to do this in your business then here are some practical tips on how to do it:
What else could I offer my customers that would be relevant to the purchase they have just made from me?
You can start off by offering complementary products and services. If you run training courses, then can you offer relevant products to them at or after the courses? If you are creating a website then can you offer ongoing maintenance or email marketing services? This doesn’t always have to be your own stuff and if you want to explore affiliate marketing then this can be a good way to put your toe in the water.
When do I want to move my clients and customers on to the back-end?
This depends on what business you are in and when they are most likely to need or want the other offers that you have. Think about sites you have been to that immediately offer you other options the moment you buy something – Amazon for example – “hey you liked this, you might also like…” so the offer is being made at the point of sale.
Or you could offer something at a fixed interval. Let’s say your clients take an introductory programme with you and after a couple of weeks you automatically send out a mailing offering the next level programme.
How much is this worth to my business?
Well again, this depends on your business. First of all, have a look at how much return you are getting from that first sale after you have taken the marketing and all other costs away – it’s probably quite a small percentage, right? But if you sold something else to the same customer how would that change the overall margin? Can you see how this could work for you?
When you market to your existing customers the marketing cost is pretty much zero – it’s probably the cost of an email or it might just be the cost of having a webpage to direct them to automatically.
The key part to making this a ‘back–end’ model rather than ‘just another offer that you make on an ad hoc basis’ is that your process and your offers are being done in a way that is systematised and where there is a progression that you are walking your clients through step by step so that they can get more and more value from you at each stage.
I’d love to hear about your business and what your back end looks like. What can you do to grow it? (OK I know I’m opening this up for doughnut jokes so keep ‘em funny and nothing out of taste!) You know what to do – leave a comment below.