Are You Losing 20% Of Your Possible Sales?
By: Jason Markum
Happy President's day to all my readers in the U.S. and a happy monday to everyone else!
In Last Week's Issue I talked to you about marketing
for Non-Profit web sites and other sites that don't really sell anything...
This week I want to talk to you about something that I consider to be just about the most important thing for any business
owner...whether they're working online or offline....
I know I talk about this often...every couple of months I seem to be screaming about this....but well....it's just that important.
What the heck am I talking about? I'm talking about the art of the follow-up.
Let's say, for example, that you had 500 customers last year and they spent $20 each. Let's also pretend, for the
sake of this example, that you didn't have any expenses.
You would have made $10,000 (500 customers x $20).
Most business owners stop right there.....and they miss out on a HUGE opportunity to e'arn m'ore money.
What happens when you get a new customer? You create a new relationship with a total stranger.
They buy something from you....they begin to know who you are (just a little)....the point is, they begin
to trust you a little...at least enough to open their wallet for that one purchase.
Any business owner knows...getting a new customer is one of the hardest things in the world. Why
throw that customer away as soon as they buy one thing?
That's exactly what most business owners do...they spend a huge amount of money advertising to
get a new customer, and then they forget about them and move on to worrying about getting that
next NEW customer.
And getting a new customer is about the hardest thing in the world......on the other hand....selling
something else to an existing customer...someone who has bought from you in the past, was satisfied
with their purchase....and begins to slowly trust you...just a little bit....is MUCH MUCH MUCH EASIER
than finding a new customer.
Let's return to our example above....we said you had 500 customers who spent $20 which earned
you a total of 10,000 bucks....
Now let's suppose that a week or two after each customer bought their first order from you, you mailed
them or emailed them a special offer on some other product that sort of relates to what they already
bought from you...
Heck, you already know what they're interested in from when they bought from you the first time.
Let's say you just send one "follow-up" sales letter to each customer....but that sales letter pulls
in about 20% in orders...(20% of 500 is 100 new sales) and suppose you're pitching something that
sells for $25....you've just earned yourself a nifty $2,500 extra sales for the year.
Does this make sense?
I'll be completely honest with you....I have several products that I sell where I make as much or more money
selling other things to the people who buy the first product then I do on the sales of the first product.
That's what people mean when they talk about selling on the "backend" or selling "Loss leaders"...
Loss leaders mean that you lost money selling the first product in order to get lots of people
to buy....then you make up the loss and e'arn your real i'ncome selling other things to those people
who you sucked in by offering them the cheap loss leader....
This is just so very important....if you don't follow-up with your customers and sell them things
in the future...you're losing out on a HUGE potential source of income....
That's all for this week. See you next Monday!
Want to use this article in your own ezine or web site? You can...as long as you add this signature line
(including the links):
John Elder is the publisher of WebPromotion-Weekly, a free ezine about Internet Marketing,
Promotion, Advertising, And Search Engine Submission as well as the creator of the popular Web Site Promotion software,