How Big Is Your Back-End?

How Big Is Your Back end?

If you felt I’m asking a personal question, then you have no idea what I’m talking about.

Most businesses go after the hardest type of customers there to get. They spend way too much time and money focusing on this avenue of business. Can you guess what type of customer I’m talking about?

Yes, I’m talking about new customers. They are the hardest to get for 4 reasons:

1. They are hard to find – In the great sea of unwashed masses it is hard to find your customers. Not many people can stand on a street corner and pick out who is likely to hire you, or buy your product. The surest way would be to stop each person and ask him or her… a survey. You would have to go through a lot of S**t to find the shinola. And that is what most new customer marketing does. This is very inefficient.
2. It cost a lot of time and money – You spend more money chasing after new customers. Why? Because you are sorting through many people who are not interested, can’t afford it or they use someone else.
3. You don’t know the quality of the customer – Is this customer you just got any good? Do they pay on time? Or at all? Are their expectations high, medium or low?
4. They are the least profitable- It cost typically costs 4-5 times more to get a new customer vs. a repeat customer. And to add insult to injury Entrepreneur Magazine states that repeat customers spend 67% more than new customers.

So, repeat customers are cheaper to get buy from you, and they spend more…

There are companies that will take a slight loss on the front end because the back end is so profitable.

I was listening to the 12 Month Internet Millionaire put out by Russell Brunson. And on it Vincent James said that his goal was to break even on the front-end sale. If he broke even or made a small profit he knew he had a winner. Those recordings are awesome… I recommend getting them. Click here to see the page.

I have been amazed at the lack of plans most people have with the customer after they get them. I have asked many people this question, and I usually hear that they are just concentrating on getting them in the door.

Not a good plan.

Stop what you are doing and come up with any plan to make another sale to your existing customers. It could be anything, just come up with something. You be surprised at the results. I remember the first time I sent out a backend offer to my window cleaning customers. One customer said to me it was about time I contacted them again. She told me she was waiting for me to ask her to call again, and she was not going to call until I did. That was an eye opener… a lesson I’ll never forget.

The moral of the story is… get a plan together to resell past customers. Any crappy plan will do at first. Then you can put together a detailed plan as you go.

Keith

The folks At HSN Are Master Marketers