Archive for August, 2015

An Aspect of Your Business That Contains 80% of Your Profits

August 31st, 2015

Confused? Don’t have to, because one component of your online business holds almost 80 percent of overall profit potential in your business. This fact will give you a sweet surprise rather than confusing you.  Can you guess this component? Well, we are referring to backend marketing. Consumer retention is the key to backend marketing because you are selling to your loyal customers. Your current and existing customers may contribute to almost 80 percent of your entire sales.

Backend marketing has recognised as the most important aspect in any business. This is the reason why customer satisfaction has become the new mantra in the business community throughout the world. You can easily presell your products and services to people who know you as a credible business owner and believe in the quality of your products or services. So, you cannot ignore the satisfaction of your existing clients and have to do everything possible to retain them as your loyal customers.

Empirical studies have revealed that companies throughout the world are now focusing on their existing clients rather than looking for new customers. Almost 90 percent of their commercial activities and sales promotion revolve around the existing customers. Before starting my business, I used to work as a customer support executive in a multinational corporation. While our sales team provided onsite support to the clients, we were responsible for providing computer-based support to resolve the problem of our clients, but the focus always remained on customer satisfaction rather than selling products.

Although, your business conditions and circumstances cannot be compared to a multinational corporation, focusing on customer satisfaction is always beneficial for your business. So, despite your desperation to get frontend customers, you should never lose your focus on backend sales and customer support. Your business may be small but backend marketing, and customer support holds the potential to transform it into a multi-billion-dollar business conglomerate.

There is no logic in ignoring backend marketing when businesses all over the world are pursuing this strategy. Backend marketing is easier, efficient and fast because you develop an emotional relationship with your existing clients. If you haven’t implemented this strategy, it’s time to immediately work on it. Your frontend customers may disappear during a slack season or recession, but backend customers will sustain you during the difficult phases of business. Some of my colleagues earned almost $20,000 a month from their backend customers when they lost their business during the recent economic turmoil. One of my friends was receiving a very respectable sum of money from his newsletter subscription and monthly catalog.

I am trying to explain that you can benefit by adopting a human relations approach in your business. Your clients expect an emotional relationship and want you to help them in resolving their problems. Once you interact with them at the emotional level, you build a lasting relationship with your clients. A human relations approach in your business will allow you to improve your brand image, reputation and credibility as a humble business owner who cares for their clients.  Obviously, we all respect these values in our day to day life.

A onetime sale goes against the principles of this sentimental gratification. People won’t prefer a one-night stand if you give them something more valuable and divine! They will return to you like a beloved who trusts you by her heart. They will accept your recommendations. Selling becomes lots more easer when people trust you. In fact, you start taking decisions for them, and they consent to your decisions. Building this kind of trust and relationship should be the core principle of your business.

The principles of price discrimination explain that you can charge higher price from your customers if you can segregate them to separate markets. The emotional relationship does the work for you. In fact, you can recover your cost of paid advertising or any other deficit by charging better margins from the customers of this segment. Your backend marketing will serve as a shock absorber and protect you from unfavorable marketing conditions.

Backend marketing principles create a kind of market imperfection that protects your business from other imperfections. It’s very crucial to implement a backend marketing component in your business strategy. It will not only pave the way to a very flourishing business, but also protect it during unfavorable conditions.