Boost Sales With Back-End Marketing
Boost Sales With Back-End Marketing
I recently met with an independent consultant who casually mentioned he charges 400 per hour. Naturally that got my attention. But what I found fascinating was that he had the same issue most entrepreneurs and small business owners have. Most of us are practitioners in our business. So when we’re providing our service we’re bringing in cash but no new customers. And if we’re focused on prospecting and sales we’re not ringing the cash register. Creating a predictable ongoing stream of business can be quite the challenge. So let’s examine what we can do.
Think of your marketing in terms of a machine. There’s a frontend piece where we bring new business into the company. There’s a midsection where we’re providing our service. And there’s a backend where we’re marketing to existing customers and contacts for ongoing revenue opportunities.
The part of the marketing machinery that is most often neglected is the backend. Studies have shown that a 5 increase in sales from your existing base can increase your profitability anywhere from 25 85. That’s a significant number. Why? Because it’s far less costly to sell to an existing customer than to acquire a new one. Usually it costs approximately six times more to sell to a new customer. Also keep in mind that current customers are already doing business with you. They like you and they prefer you. It’s a much easier sell now that they’ve experienced one of your products or services.
For some types of business working the backend is relatively easy. Accountants for example will most likely get your business for ensuing years once they’ve completed your tax prep for the current year. That’s a nice healthy recurring revenue stream. With other types of businesses it’s quite a different story. With Web designers for example once a new site is up most companies don’t change it regularly. So after the initial sale additional sales are somewhat limited. Regardless of which type of business you’re in here are some things you can do:
THE single most effective way to increase backend sales is to ask for referrals. You have a customer or prospect that’s excited about doing business with you. Who else do they know that you might likewise be able to delight? Give serious thought to instituting a referral “system”. In other words create a routine in your sales or fulfillment process that includes asking for referrals.
How else can I be of service? If you’ve got a slow period there’s no better time to examine each of your existing customers and ask yourself that question. For example what other products in your portfolio could help them? With what you know of your customers’ business you may have the perfect solution to a pressing issue. Be proactive on their behalf.
Be visible. Periodically connect with something of interest or educational. This ezine is one such example. It allows me to carry on a conversation with many businesses. By the way I get so much back in return. I hear wonderful stories from individuals about how a particular piece resonated with what they’ve experienced or how it was just what they needed to hear at the time. What a great reward! Naturally another benefit is that I get my name in front of many business people every month. And I can trace that to an increase in my business.
Make them an offer.Oftentimes we assume our customers know all of our offerings because they’ve done business with us. I’ve had clients that I know VERY well not know about a particular service they were looking to outsource and I could deliver. In addition to communicating regularly feature a different product or service periodically.
Make a connection with your customers and ask “What can I do for you?” By asking questions and being focused on your customer’s business you’re not selling in the traditional sense you’re solving problems. The support they need may or may not have anything to do with your products. But you’re strengthening your relationship and being a partner. And that’s good business.
About the writer: Pat Price has worked with numerous clients to generate more business and boost their marketing effectiveness. She is a professional speaker and president of The Price Group Inc a fullservice marketing firm serving small to midsized organizations. To receive Pats free Marketing Tips! newsletter go to www.PatPriceSpeaks.com/resources.php. She can be reached at 630.717.8332 or through her website at www.ThePriceGroup.biz.
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