By: Kevin Grimes
You've spent time, energy and money promoting your business. Paying customers are beginning to notice you. Any second now, you will make your first sale! The concept is exciting! And frightening! Most new business owners have few customers, and although their marketing efforts are beginning to pay off, it is necessary to make the most of every customer, especially the ones that buy something.
The techniques I'm about to share with you are time tested and proven to be effective, however, they are often overlooked by business owners. They are basic ways to add additional profit to every transaction.
Follow up. This little gem has been used by merchants since the time of the pharaohs. When you make your first sale, you MUST follow-up with the customer. Send them a "thank you" email and include an advertisement for other products you sell. Also, don't let the relationship end! Follow-up at regular intervals; once every few weeks, or once a month. Add them to a mailing list. You could even automate this with the use of an email autoresponder. Isn't technology wonderful?
Upsell! Think about it. If you went to a department store to buy a transistor radio, you are also going to need batteries. You might even need an earpiece. You can upsell to your internet customers the same way. When they're at your order page, tell them about a few extra related products you have for sale. Offer to add to add it to their original order as a convenience to them.
Referrals. You know your customer is going to love whatever you're selling them. They're going to tell their friends about it. Tell your customer if they refer four customers to your web site, they will receive a full rebate of their purchase price. You get the customers money up front and they will send you four more customers. This will effectively multiply your original profit by a factor of three!
Affiliate Programs. Related to the technique above, but with subtle differences. When you sell a product, give your customers the option of joining an affiliate program so they can make commissions selling your product. This will multiply the sale you just made and provide you with a residual source of new customers.
Sell the reprint/reproduction rights to your products. This is VERY profitable when selling Information products, but could work in other areas as well. Include your ad inside the product for other products you sell. You could make sales for the reproduction rights AND sales on the products advertised inside. This is sometimes referred to as "viral Marketing"; because the person to whom you sold the reprint rights will distribute their product widely with your offers inside.
Joint Ventures. This is the old "two heads are better than one" scenario modified for internet profit! Cross promote your product with other businesses' products in a package deal. You can include ad copy for other products you sell and have other businesses selling for you.
Coupons. Here's another classic easily adapted to online sales. When you ship out or deliver your product, include a coupon good for a discount on other related products you sell in the package. You are rewarding your customer for the business and it will dramatically increase the odds that they will buy more products from you.
Send a catalog. If you think the internet has replaced the paper catalogs of old, then think again! Catalog marketing is very effective, even today. Send your customers a catalog of add-on products for the original product they purchased. This could be upgrades, special services, attachments, etc. If they enjoy your product they will buy the extra add-ons.
Gift Certificates. It's getting more and more difficult to give gifts these days. Solution? Gift certificates! When you sell a gift certificate, you've solved a problem for your customer, plus you'll make sales from the purchase of the gift certificate. When the recipient cashes it in, you have the opportunity to upsell.
Free Bonuses. People LOVE freebies! Send your customers free gifts with their product package. The freebies should have your ad printed on them. For businesses selling physical goods, It could be bumper stickers, ball caps, t-shirts etc. This will allow other people to see your ad and order. If your product is electronic or digital, it's even easier, because the giveaway will usually cost you less.
There are countless other ways to maximize your sales. The purpose of this article is merely to open your eyes to the fact that the quality of the relationship you build with your customer is what increases your profit. The underlying idea is to build trust. If your customer considers you a valuable and trusted resource, you will be rewarded with more profits! |
