Well we are going to make good use of this information to really maximize the profits you can generate from your business.

A very effective strategy is to offer much higher value and profit services or products on the back end, to customers who have already purchased from you one or more times.

Since we now already know you are more likely to get a sale from existing recent customers, it makes sense to take advantage of this and offer high value product or service to these customers, with the assumption that you will get a better conversion rate then if you had offered these high ticket items upfront.

These are the type of services or products that would be a very hard sell to a new prospect.

Imagine you see ad in the paper for a book on weight loss that costs R4500. You may think that there may be something of value to this product since it costs so much, however would you really invest this much in a product from somebody you know nothing about, who is making promises you don’t know if you can trust or not? Not likely.

However, let’s say you have been a fitness customer of Jim for 6 weeks, have started to see great results from his training sessions as well as the 2 supplements he has recommended so far.

This means you can already see the first 3 purchases you have made from Jim paying off and the “promises” made in the marketing of his original lower priced products have not been false.

In month 3 Jim now tells you about an advanced fitness training program he has for R7000, and shows you proof and testimonials of other satisfied customers that have completed the program.

You will be far more likely to do whatever is necessary to find the funds to invest in this program since you trust that Jims promises are real, since has delivered on previous promises so far!

The idea is to use lower priced products to obtain customers and get them into your sales funnel. You then begin to build their trust in you. If you do this by over delivering in every way on the purchases already made, you will be in a position to nurture a loyal customer who will truly trust in anything you say, and will buy anything you offer them. I promise you this (trust me J )

Actions:

1. Take a look at your current business and try and come up with ideas on an advanced product, course or service you can offer on the back end to existing customers.
2. You may be thinking that what you are already offering is as advanced and as high priced as can create. This is usually not the case. If you’re selling something people are buying on their first purchase, then there is always an opportunity to create a new advanced version or complementary service or product you can offer these customers on the back end. Use your imagination!
3. Before you begin offering any higher priced products (or anything at all) on the back end, you need to make 100% sure you are delivering (over delivering!) on your current front end products.

Obviously you won’t be very successful on the back end if you’re not delivering on your initial promises, as your customers will probably trust you even less then if they had never bought from you before.

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.