Using customer discounts to promote an offer on the back end can be very powerful if used correctly.

This is simply a way to increase your conversion rate on back end offers. You conversion rate is simply the % of customers you make an offer to, that accept the offer and proceed with the purchase.

For example, as a fitness professional who offers a group class training session (such as spinning class) as well as one on one training, you can offer all your group class students 20% discount on your one on one training simply because they are already in your group class.

Discounts are great, and people always want to save a buck where they can.

I would recommend first recommending an additional service or product to existing customers without a discount. Track the conversion you receive over 3 months and the additional profit generated.

Then offer the same product at a discount and record you conversion and additional profit.

In most cases your conversion will be higher with the discount then without, but if it is not high enough, the revenue you loose offering the discount may put the total profit generated below what was generated at the lower conversion, but without the discount.

You should always track results, conversion, profits and test test test test offers and discounts until you reach the highest profit to discount ratio.

At this point I’m going to stress something very important. You always need to track results, conversion and profits so you can accurately gauge the results you receive from your marketing efforts.

If you don’t do this you could be wasting your time for minimal results, or even do your business harm. Its very easy to do this, so there is no excuse not to, as it has direct effect on your bottom line.

Go here for an article on marketing tracking and metrics.

Next we will discuss service plans.