Imagine a negative 15% on every first order! Jay Abraham, the mastermind genius behind the Icy Hot promotion, developed a strategy where he was willing to spend 115% of the initial selling price to acquire a customer. The classic marketing example is Icy Hot. You see, most people don’t understand that – most of the time – entrepreneurs will lose money, break even, or make a marginal profit on the FIRST purchase a customer makes, simply because of the cost of customer acquisition. Of course, we’re not just talking about giving away free meals, products, or services here (though it’s a great idea with the right back-end sales strategy) – we’re talking about maximizing the value of each of your marketing campaigns.Īside from the usual channels, take time to check out a few other alternative digital marketing networks that could boost your advertising campaigns (while costing you a lot less.) In fact, the restaurateur commented that one patron who became a customer used their function spot so regularly – even if he was the only patron the restaurant attained during this promotion – he alone made the campaign profitable. However, because the client delighted his new guests during their free meals – and he targeted them based on the pretense that they might use it to host regular meetings – his focus on the back-end, bigger game strategy made it worth it. As a simple lead generation tool, most people would see this strategy as crazy… Put another way, the money is in the back end, not the front end!įor example, a friend of mine told me a story about a client who gave away free meals to his most highly targeted customers. Experienced marketers focus on the back-end sales. Here’s the truth: inexperienced marketers focus on the front end.
One of the biggest business killers sucking the lifeblood out of companies is the lack of focus on back-end sales.įor many entrepreneurs, they are so focused on bringing in new customers, they ignore the giant potential that exists in driving multiple sales through the use of upsells, down-sells, and cross-sells – which drastically increase the overall value of your customer.
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