Instant Backend
Dear Business Builder,
Welcome back to In the ‘Net Trenches. In last week’s issue, I wrote about how we struggle with change and how change is not only difficult in life but also in marketing. Getting stuck in a marketing rut is a sure way to severely limit the growth of your business and can even be a business killer.
One of the marketing ruts I pointed out involves completely ignoring your backend. Now I don’t know about you, but I would love to ignore my backend … but that’s the backend I can see in my full length mirror. But when it comes to marketing your business, focusing all of your efforts on bringing in new customers and never reselling those customers means you’re leaving tremendous potential on the table.
Here is a recent example from my life that demonstrates the lost potential … and I’m sure, if you pay attention to your personal commerce you’ll find many more businesses making this terrible gaff.
The Backyard Pool
About a year ago, we installed a pool in our home. As I’m sure you’re well aware, pools are bloody expensive. The other thing about going through a pool installation is you have extensive contact with the salesman that sold you the pool and the project manager that works with you throughout the installation. So over the course of the 90 – 120 days (and that is on the fast side) it takes to go through this process you develop a relationship with these people … and hopefully it’s a good one.
The salesman for the pool company we chose was fantastic. He was the type of salesman that would drive most marginally interested people crazy. Prior to our signing the contract, he did what all great salesmen do – he called, and called, and called some more. And every time he called and I told him we weren’t quite ready or we hadn’t quite made a decision, he secured another date in the future where he had my permission to call again.
Of all the pool companies we dealt with, he was the only one that followed up consistently until he got the sale. His persistence not only got him the business (and the commission), his tenacity was downright impressive.
A side lesson to all the sales people out there – persistence is key and it’s a sure path to success. All the successful sales people I know are persistent and follow up to a fault … even if they’ve been told no a hundred times. Their goal is to be kept at the top of their prospect’s mind so when the need strikes … they’ll be the first one to get the call. They know timing and a good relationship is everything. As it is in sales, so it is in marketing.
Construction Begins
After we signed the contract, the process began. We had to determine the shape of the pool and how it would sit on our property. We had to choose the type of deck we wanted and the color. Should it be screened or not screened? What color finish, what color coping, what color tile … the decisions seemed endless. But the project manager was there every step of the way. After we made our decisions, we had to approve the plans and of course cut the checks.
And, all told this was a relatively easy and smooth process. I had heard so many nightmares from other people that had awful experiences with pool companies. Living in a hot state like Florida, you can throw a rock and it will land in a swimming pool … so literally everyone you know has a pool horror story they’re just dying to share.
So as we started the installation, I was expecting the worst. But other than one minor issue with the size of the entry steps into the pool and a few minor delays, the installation was quick and painless. In about eight weeks from start of installation to finish we had a brand new swimming pool.
Once the pool was built and was filled with water and chemicals, they sent over a technician to do what they call “pool school.” We went through all the instructions on how to care for the pool … which we promptly forgot. And that’s when I started thinking no worries … our experience has been great so far. This company has it down – they’ll follow up in a couple weeks and we can ask a few questions.
Where a Good Experience Goes Bad
Perhaps it’s because I make my living as a marketer that I noticed the lack of follow-up. The average Joe would unlikely be dissatisfied because the company they chose to spend a large sum of money with didn’t ever call or correspond with them again. But, I suspect they might find it odd and not know why in the end it didn’t sit right.
I kept waiting to hear from them. Thinking any day they’re going to call and see how we’re doing with our new pool. Check in to make sure it’s running properly. Send us a survey to see “how they did.” I expected a call from the fantastic salesman asking if we were satisfied and did we have anyone we’d like to refer that wanted a new swimming pool of their own (which I actually did). Or an e-mail message about their great pool maintenance service they can offer at a discounted price for their new pool owners.
Nothing!? As a customer I felt a little betrayed. As a marketer I felt I should intervene.
Here was a company that had a really smooth operation. They had it “going on” on the front end. They’re spending time and good money to generate new business on a consistent basis. Yet, as soon as the pool is built the whole thing falls apart and I suspect they don’t even realize the opportunity they’re missing.
5 Easy Ways to Add a Backend
All front end and no backend makes Joe Business a dull boy … but it’s not an uncommon business model. Especially for a service business or a business that only has one big product. But, as I explained in my side lesson to sales people, the key is to stay at the top of the mind of your existing customers. So when the need arises they think of you first. And that is where follow-up and the backend is crucial. It’s also how you beat the competition.
So if you don’t have a backend to sell, here are 5 easy ways to add one …
#1 Wholesale – No matter the business you’re in, you can find products you can buy wholesale and sell retail. Make a selection of complimentary products and use them to promote to your existing customers. In the case of the pool company, they could stock a supply of pool chemicals, high-end pool tools and loungers. Any related product that gives them an excuse to correspond by phone, mail or e-mail on a regular basis.
#2 Affiliate Products – As an affiliate, you refer people to an existing business for a commission. You don’t need to stock product or pay any money up front. If your business is online, affiliate programs run rampant and all you need to do to find a complimentary one is to visit affiliate networks like Commission Junction or ShareaSale. Otherwise, if your business is offline or local you can strike deals with non-competitive but complimentary companies and arrange a commission to be paid if a referring customer makes a purchase.
#3 Joint Venture Products – This type of product can be created in tandem with another company or person and promoted by all of the participating partners. Joint Ventures can run the gamut from reciprocal marketing efforts to full scale product manufacturing so the opportunities are endless.
#4 Referrals – If you don’t want to add a backend product line but still want the opportunity to contact your existing customers on a regular basis, consider a full scale referral program. A laser eye center that I know offers $200 to every previous customer that refers a new patient that then has the procedure. Not only does it give them an ongoing reason to contact their past patients via mail and e-mail, it works and they’ve created a nice little outside sales force.
#5 Information Products –Information products are a fantastic way to add a backend with very little expense and you don’t have to charge for them. Information products can take the form of anything from an e-book to a newsletter to audio or video. One realtor I know stays in touch with and asks for referrals through an ongoing e-newsletter that keeps you posted as to all the homes on the market and all the recent sales in your neighborhood as well as a calendar of upcoming entertainment and activities. Because she publishes consistently, she stays at the top of her past customers mind and hers is the most common "for sale sign" you see in our area.
Creating a backend to your marketing efforts doesn’t have to take a tremendous amount of time, money or resources but done properly and consistently can have the power to drive repeat and referral business into the stratosphere … not to mention let you beat the pants off the competition.
Hope that helped and happy Friday!
Until next week,
Julie McManus
Editor, In the ‘Net Trenches
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And Web Media Goddess
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Comment by Mike — August 24, 2007 @ 1:23 pm
I like the topic and wish to know more at some point. What are the \”Backend Secrets\” or details of building a back end program–and then maintaining it? As a small business person, perhaps similiar to your pool company, the backend is something I never seem to get to.
Thanks.