If you want your business to be robust and grow during downtimes and up, you need to develop a strong back-end marketing strategy.
What is a back-end marketing strategy?
Back-end marketing is part of the sales process or funnel and is used to increase the amount of a sale. There are three general forms:
- Cross-selling: Since you bought this, would you also like that?
For example: If you like “Lord of the Rings” by J.R.R. Tolkien, you might also like “The Sword of Shannara” by Terry Brooks.
- Down-selling: Was this offer at too high a price? How about this one-time offer at a lower price?
For example: Would you like a do-it-yourself course rather than full coaching?
- Up-sells and Bumps: Would you like to add this other item that goes well with what you are buying right now?
For example: Would you like fries with that? or Would you like that supersized?
Back-end marketing also includes any and all follow up you do with your prospects and customers, such as email marketing and postcard marketing.
Much of this can be automated, which makes it all the more attractive. Modern shopping carts give you opportunities to program in cross-sells, up-sells, down-sells and bumps.
How to incorporate these techniques into a powerful back-end marketing strategy
Step One: Understand Your Current Products
You need to understand how your current products interrelate. What products and services logically balance or go with each other? These are the products that you need to set up a cross-selling system for.
Use the features in your digital shopping cart to suggest these products when one is placed in the shopping cart. Include promotions for these products in your follow-up autoresponder sequence for those who buy one of the products.
Plan it out, implement and let it run on autopilot.
Step Two: Fill In The Gaps
You need to understand what products you don’t have that would be good to develop and harmonize with what you currently have. For example, if you sell dog collars, could you also sell dog leashes? If you sell an information product about parenting toddlers, could you also sell one about parenting tweens? I hope you get the picture. Whenever you develop a new product, you should be thinking about other products you could create that would interest people who purchase the one you are currently developing.
Step Three: Design Down-Sells, Up-sells and Bumps
Once you have your cross-selling strategy laid out, start thinking of ways to create down-sells for your more expensive products. Are there things you can remove from the package so you can offer it at a lower price point? You’d be surprised how many more sales you can make when you offer a lower-priced option.
Do the same with bumps and up-sells. What can you add to a package to enhance its value to your customers? Remember, at this point, your customer already has his or her wallet open and is more likely to increase their current purchase than at any other time.
Leverage other people’s products for your back-end marketing
You don’t need to create all these back-end sales opportunities yourself. You can become an affiliate for a product or service that complements your product and offer that as a cross-sell.
An easy way to do this, especially as an author, is to become an Amazon Associate, and recommend other books to read.
Developing a powerful back-end marketing strategy takes some forethought, but once you get started, you’ll find that thinking along these lines becomes easier and easier. And, when implemented, your profit margins should grow.