Back-end sales, in layman's terms, is being able to market and close the sale to additional products or services to existing clients. People in business know that it takes much more time to gain a new customer and to market the company's products to a yet probable market. It is much, much cheaper to sell to existing clients since they already know what the company is capable of offering (this means less advertisements and marketing tools).
It is quite easy to hook the loyal customers to remain devoted to the company. Such advertising measures as sending out e-mails or snail mails could ensure easy sales. Profits will surely be raked in as these loyal clients respond, and who knows, they can even bring referrals who would be as eager to make the purchase (word of mouth is a much cheaper means of advertising but is one of the most effective).
The initial sales aren't the pillars that will eventually support the business to stay longer in the industry. The initial products are only samples and once the client base is founded, it will be the back-end sales that make the business flourish. Most businessmen invest in initial sales (to the point of making do with just a break even) to impress their first customers. When these customers come in, its time to count profits coming from back-end sales.
It is said that it takes around 5-7 times of advertisements before the message sinks in to any new customer to make a decision. Once this undecided person does decide to become a buyer of your initial product, then he is somehow filtered and becomes a part of the next level of marketing phase where the objective is to keep him hooked or interested. Once he becomes a regular customer, it takes much less time and effort to ask for additional sales.
One good idea for back-end sales is the sales of videos of previous, successful seminars or sessions that have been held. These videos could help inspire those who attended to remember what they learned at those seminars. If lucky, the company could even take in additional customers through word of mouth (the attendees talk about the seminar to their immediate family members, friends and other associates).
Since old videos could become new money for the company, its advisable to make enough preparations for each and every presentation and to carefully store these videos or manuscripts for future release. One possible way to market them is to send e-mails (with a much more personal note) to existing customers. Also, it is best to make the customers constantly remember about the company by sending ads every now and then, again, through their e-mails.
Back-end sales is the bread and butter of the company. To clearly illustrate the point on this, let us set a common example: let us say that Company A has established quite a few enthusiasts with its marketing schemes and giveaways. As these people become their clients, they work hard to please them by providing extra services or a freebie every now and then. As long as the clients remain pleased, business will be good for Company A, if not, some of these clients might prefer to do business with Company B.
Using the power of loyalty, Company A could start selling previous seminar videos or even manuscripts of what the business has been offering. The secret here is to make the existing clients feel special and treasured. Businessmen should bank on the idea that existing clients are 25% more likely to buy what the company is offering to them. Once they feel that they are just another number, then its time to say goodbye to them.
Just remember this fact; 90% of the company's profits, according to some studies, are delivered by back-end sales. Making manuscripts, other printed materials, or videos of previous seminars or conferences can be comparable to earning royalties and earning that 90%. Once a talent is done with, say, a record album, he could begin earning royalties each time that the album is legally bought. It is much like working while the sun is up and enjoying the profits as the business trudges on.
This free article is provided by the FreeArticles.com Free Articles Directory for educational purposes ONLY! It cannot be reprinted or redistributed under any circumstances.
Article Copyright By Author. All Rights Reserved Worldwide.
|
