Getting a customer is not easy.
Getting a visitor to decide that he or she wants to buy the product or service you're offering, getting out their credit card and giving you their hard-earned money is not a piece of cake.
Most visitor's to your Internet site, 97 - 99% of them if you're lucky, will not buy your product. They turn away from your site, your offer...and they will probably never return. In other words - if you work hard, if you use the right techniques and if you're talented maybe you'll get 1 - 3 % of the people who visit your site to buy. But it's not easy.
First you need to make sure you actually get enough visitors to your site. And if you use paid advertising, like pay-per-click search engines - this will cost you money. If you plan on getting visitors for free, this will take you time.
You need to make sure that your visitor is persuaded to buy. And if he or she won't buy the very first time they visit your site, you need to get them to come back again later.
Getting a customer ? a "first-time" customer ? takes a bit of effort.
But the efforts are worth it. Because once you have that customer, he will be a valuable asset.. Your customer will become your main income source. Why? Because your already existing customers are much more likely to buy from you again and again.
By calling this "customer life-time value", you're putting a name to it. And a value. How much will your average customer buy from you over the next 10-15 years? Customer lifetime value. The online businesses that make the most money are the ones that know how to use their existing customer base to maximize profits.
I guess the old saying that you need to take care of your customer, is particularly true on the Internet.
I'll give you an example.
A guy called John runs a site where he sells a product for $ 100. He gets a small amount of visitors - 100 visitors a day; that's 3000 visitors a month. He manages to sell to 1% of his visitors, which means he sells for $ 3,000 a month. He gets 30 new customers a month.
After a year he's earned $ 36,000 from his 360 customers.
His friend Neal runs a site, too. He gets 100 visitors a day and sells a product that costs $ 100 and manages to sell to 1% of his customers. 30 new customers a month; 360 customers a year. What a coincidence, right? Anyway, Neal has got a really nice product. A product people love. He also offers great customer service. Neal's customers like him very much.
They wouldn't mind buying from him again.
After his first 12 months online, Neal sends all his 360 customers an email offering a second product. A so-called back-end product.
This doesn't take him long. After all, it's just ONE email.
The second product is a little more expensive, it costs $ 300, but it is a product that his customers really need. A product they want. (He knows this because he asked them in a survey what product they would be interested in; what products they really needed.)
Since Neal is a great guy offering great products and excellent customer service, as many 30 % of his customers buy the second product. That's 108 people.
Now here's the interesting bit. The second product costs $ 300, which means that Neal has an additional yearly income of $ 32,400!
Look at the figures! Neal has doubled his yearly income just by selling a second product to 30 % of his customers. He hasn't had to go to great lengths to get new customers, but he's using his existing customers to double his profits!
John makes $ 30,000 a year, Neal makes $ 62,400.
And the one and only difference is that Neal sends out one extra email!
Neal still only gets 100 visitors a day. He still only gets 1% of them to buy his first product, but he offers them all a second, back-end product. He maximizes the profit potential of his customer base.
Strategies like "back-end offers" and concepts like "lifetime value" shifts the focus from the short sighted "take the money and run" strategy that is so much in use on the internet today. You've seen these sites all over. They only focus on getting a massive amount of traffic and then selling visitors an overpriced product that doesn't deliver what is promised.
Customers feel fooled. Why would they ever want to buy from this salesman again?
The more successful sites focus on building a strong relationship with their customers. And your main goal shouldn't be to make sure your customers are satisfied...you want them to be extremely satisfied. If you deliver the goods, your customers will trust you more. And if you have their trust, you can sell them anything.
Here are a just few pointers of how you can establish a great relationship with your customers:
1. Delivering a great product
Give your customers exactly what they want. And then some more. One of the best ways to get people to buy from you again and again is to only sell high quality products. If you ever consider selling a crap, overpriced product, ask yourself why you'd want to loose all that future income from your customers.
2. Responding quickly
When you run an online business, you'll get a lot of email. People will ask you about all kinds of things, and they will expect answers immediately. Set up autoresponders to make sure they get a pre-written email the minute they send you one. Tell them that you've gotten their email and that you will read it within the next 24 hours. And make sure you do. When you've read it, always reply to them, even if you can't answer their questions.
3. Taking care of customers after purchase
Too many online businesses forget about their customers once they've bought the product. And if they take the time to write to them again, it's only because they're trying to push another product. Don't get me wrong, you want to push that second product, but consider at least pretending that you care about how your customer is doing. Sending an email doesn't cost a penny. Why not send more emails where you're not trying to sell them anything. In the long run, this strategy will make you sell more! Ask how they're getting on with their product, give them tips, give them a free gift, congratulate them on their birthday etc. Care more, and you'll sell more.
The bottom line? Think long-term. Realize that your existing customers will buy from you again and again if you just let them. Let them.
About The Author
Steve Atlas writes regularly for the Internet Marketing Dictionary - http://www.internet-marketing-dictionary.com
![]() |
|
![]() |
|
![]() |
|
![]() |
Here's a really simple way... any novice can create a... Read More
To explain my point I need to first confuse the... Read More
An "include" file is a piece of code that can... Read More
Yes, in a world that is obsessed with makeover madness,... Read More
Many times I've seen a web site undergo a revision... Read More
The Questions You Should Be Asking ? The Answers You... Read More
QUESTION: My business is very small, just me and... Read More
Here are 10 dynamic website advertising tactics to super-charge your... Read More
The most popular method to build webpages today is to... Read More
They may look cutting edge, but if you want a... Read More
Have you ever thought about the real stories behind all... Read More
When I purchase something from a web site I first... Read More
Hire a designer or a programmer for your website is... Read More
So your web site's online and you've got high rankings... Read More
The problem with designing your site as a graphic, is... Read More
Here's the single most important part of your website: YOUR... Read More
1. Web site File Structure / File NamingMost search engines... Read More
You have created your custom error page so now all... Read More
Does website design make a difference in how long people... Read More
1. What's the purpose?The most fundamental thing to do before... Read More
A web site builder can be a real life saver... Read More
Just what is web copy? Some people think that web... Read More
Are you looking to create the perfect website? A complete... Read More
Do you have a website? If so, you need an... Read More
In retailing there is a saying that sales are made... Read More
A website should firstly be searched out by visitors before... Read More
Don't just put your slogan in the title tag when... Read More
When you design a website how do you start ?Do... Read More
Unless you are an inventor, most likely you are selling... Read More
If you are one of those who wonder how people... Read More
So you want to build a website here I will... Read More
Home-based businesses need a strong web presence to combat the... Read More
Remember the day that you got your new computer (or... Read More
When you design a website how do you start ?Do... Read More
Let me repeat that.."The technology may change, but human nature... Read More
Many people today are tired of the Microsoft software that... Read More
What do the key words represent?Key words - these are... Read More
There are six important characteristics that can play a major... Read More
There is nothing wrong with making your own website if... Read More
How many of the visitors to your web site take... Read More
Physical therapists have unique web presence needs. An effective site... Read More
If you need a web designer, but have no clue... Read More
There are many companies who build websites, all of which... Read More
Here's the single most important part of your website: YOUR... Read More
I want you to imagine a lemon. In your mind's... Read More
You have only 10 seconds to impress your potential buyer.... Read More
You've likely heard of the movie, Jerry Maguire, with its... Read More
As of September, Smartads went through what so many have... Read More
Think of the people who visit your site as blind... Read More
The ability to create simple, attractive and functional web pages... Read More
I hate to imagine that in your web development project... Read More
1. DO NOT use excessive graphics or banner images on... Read More
Do you have a website? If so, you need an... Read More
If you've a website that is not generating a lot... Read More
This is my second article on maximising web site viewability.... Read More
The problem with designing your site as a graphic, is... Read More
You're almost set. The content of your website, e-book, or... Read More
Let's look at what your user wants to see at... Read More
You have created your custom error page so now all... Read More
Making a successful online business can be a long and... Read More
The icons in an application are the soul of the... Read More
The concept of web designing based on the nature and... Read More
Never put form over function. Why? Because it's crucial that... Read More
There are two important reasons to build your website from... Read More
In this article you will find the parallel between two... Read More
Designing a website is hard job, and requires you to... Read More
Web Design |