“It Costs Five Times More to Acquire a Customer than to Retain a Customer.”
It’s one of the most well known quotes among marketers, and for a good reason. To boost your bottom line look at selling more to your existing customers rather that finding new ones.
Or in other words, for the same money that it takes to acquire a new customer, you can get 5 new sales from your existing ones. Others sources point to an even higher ratio: even 6 or 7.
So here comes the question: HOW do I sell more to my customers?
Read on to find out about a powerful and easy technique that you can use in your business to double (or even triple) your customers’ lifetime value.
Let me illustrate the concept on the example of direct marketing – which is based on emails sales funnel. The same logic applies to any other business as well (not just online), so what you will learn today, is something you can use no matter what business or industry you’re in.
Now it’s not something you will read about in books or hear from any marketer. This is a fresh new idea, and you are among the first to hear about it. Ready?
Let’s look at a standard sales funnel. It goes like this:
It’s a normal flow for direct marketing. It works ok, but it is NOT maximizing your sales.
What’s the problem with this model? It’s not using any social triggers. There is no leverage that will help you get the results you want.
Now here is how to organise your sales funnel so that it talks to your customers’ unconsciousness, and make it impossible for them to resist your offer:
Here is why it works:
A person goes through the sales funnel for Product A. When they buy Product A, they get – as a bonus (for free) – a part of another product of yours (Product B). Your customer will now consume the full Product A and a part of Product B. You just opened a loop.
(Note: It is important that the two products are related and make sense together.)
Why is this so important?
Because it is in our nature to want to close it. We are searching for closures in everything. Think of the last time you read a book or watched a movie that you didn’t like. Did you stop or continued to the end anyways? Have you ever been following a TV series that you lost interest in, and yet you still finished the season? Are collecting anything?
You see where I’m going? The need to continue and close what we started is very strong and people are not strong enough to resist it.
This is why introducing open loops to your funnel will make such a significant difference. It’s your job to open a loop – but it’s your customer’s job to close it.
And how can they do it? By purchasing Porduct B. This is where you enter with your second sales funnel, for Product B, and linking to the free part of that product they already have.
The beauty of this approach is not only that it’s powerful, but also that it’s re-applicable. You can continue this model with as many products as you want. So when a customer buys Porduct B, you can give them a sample of Product C. And so forth.
Now that you have this powerful tool in your hands, what are you going to do with it? I hope you apply it. I can’t wait to hear about your results. Leave your comments or questions below.
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