I was at the local Subway and the worker tells me, "It's amazing how many Meatball sandwiches we sell now".
Subway is running a promotion till Dec 22. The offer promotes three sandwiches, Cold Trio, Veggie Delight, and Meatballs for $1.99 each.
Then the worker explains to me, "We never sold Meatballs. Nobody bought them and it was a dying breed."
The Backend Promotion Promotes Long Term Profit
Now that the price is set at $1.99, the real question is, "How is Subway going to profit from this?"
The answer is in the backend. As long as Subway profits X amount of dollars in extra from every $1.99 customer, they will stay in profit through its backend revenue.
The chips, the fountain drinks, a foot-long, and more takeouts… Subway will cover the cost from each $1.99 sale and make profit through upsells.
The small profit though, is not something every small business is willing to risk. That's because most businesses do not have any backend sales funnel built to ensure that greater profit comes from repeat customers.
Let's face it, most businesses hope and pray that their customers return to them when it's time to buy their products and services again.
Ain't going to happen.
At least not so easily. But let's discuss how you can bring back customers by employing smart online tactics.
What are some things you can do to bring the customer to come to you in the first place? Let's explore what you can do in the frontend in order to sell through backend.
1. Capturing Their Email Address In Exchange for Something FREE
Instead of merely running a promotion that targets anyone, reward the customer with generous offers in exchange to their email addresses.
So, the first offer promotes valuable frontend products/services. This can be free or low price.
Then add bonus to those who would give their contact/email information.
Once you get people to sign up, use Auto Responder service for future mailing with option to unsubscribe from your offers. Once you do this, your advertising cost to the database becomes zero. Send generous promotions so the word spreads to get their peers to sign up.
2. Use "Secret Code" Via Twitter
Using Twitter, you can reveal secret codes to be redeemed for discount. The catch is, they must be following you on Twitter to always know when you change the code. If you change this frequently, the foodies with blogs spread buzz for you and it will create viral effect.
3. Give Out Secret Recipes
On your website, give out a recipe if a visitor gives up their email information. Now that they are on your mailing list, they raised their hands saying they are interested in your business. Variation of this can be employed for any business and not just restaurants.
4. Show Instructional Videos
Video yourself cooking a meal, teach your customers how to cook if you're a restaurant owner, or demonstrate how to take care of yards if you're a landscaping company. Many people watch it and will call you as a result.
5. Invite Boy Scouts
Boys have to earn merit badges. In fact, they're always looking for special presenter who can demonstrate what you do as an adult. Get invited to teach boys what's like to do what you do in your business. Boys can share stories about you while you're helping them.
Okay, I just gave out five easy frontend promotion tips. The next step is to build a system that follows up with customers on autopilot.
Lead Capture System That Follows Up on Autopilot
Get Auto Responder
I personally use Aweber for this. Using auto responder system, you can send broadcast emails about any future promotion.
Suppose you're in retail, throughout the year, you can almost run promotions every month. Feb – Valentines, Mar – St Patrick's Day, Apr – Tax Season, Aug – Back to School, Sep – Labor Day etc. You get the idea. All you do is come up with more excuses to run promo.
You will need a lead capture system that signs up your customer automatically. Call the credit card processing company to change "THANK YOU" message on your receipts to "SIGN UP FOR FREE _____ " at your URL so every customer walks in goes home with a call to action.
Develop Email Campaigns
If you don't think you have time to do any of these, look for local PR firms. They will help you craft marketing messages and develop ad copy. This becomes the backbone for your backend system.
Look – I can show you many ways to generate traffic. But we're going to keep this section simple.
In the beginning, you will use four traffic generation methods.
1. Google Places. If you have physical presence, this is a must. Sign up for Google Places and get your listing to show up on Google Maps.
2. Offer to write expert articles. There are many publications you can find locally that lets you write advertorial type articles and link it back to your website. Get featured in these and direct every reader back to your website. This can be done online like I do if you use sites such as www.ezinearticles.com
3. Submit Press Release. I recommend you hire a PR firm to write this. Any decent releases can be created for a few hundred bucks. Do this at least once a month.
4. Submit the articles you created in Step 2 for YouTube. You can have someone create a short, 3 min video based on the article you wrote in Step 2. Upload it to YouTube and send traffic to your website.
5. Use Yahoo Answers and link from source. You can create an account at Yahoo Answers and lets you answer questions pertains to your industry and hopefully you get people visiting your website. You can outsource this task. The trick is to look for open questions and offer helpful advice and leave your URL at the "source" section.
These methods will generate traffic up and running for any website. I recommend outsourcing most of these tasks if possible.
Once you developed an effective system, you can hire someone in the 3rd world to do this for you. They are called Virtual Assistants or VA. Plenty of VA companies from India and Philippines can be hired for a few hundred dollars a month doing this full-time.
The most important task being you create a system that follows up on customers on autopilot. To do this, you'll need…
- Auto Responder system
- Follow up emails
- Lead capture page
and that's it for today. I could write more, but since this article mentions timely events, I am going to hit "post".
Please leave comments if you have feedback to this post!