The Science Behind the Sales Funnel. When customers buy your product or service, businesses have them entered into a “Sales Funnel” or “Customer Retention Path,” where they receive regular mailings or e-mails promoting the backend products. That lifetime value often makes the time and effort it takes to set up a Customer Retention Path more than worth it. A Successful Customer Retention Path In order to create a successful customer retention path, you need to know what products to offer, what order to offer them in, and what price points to use. Next, try mailing (or emailing) a sales piece out for each product or service. For example, the clients I just mentioned often put on live seminars. In this case, you want to get a feel for the kind of response you get to your first mailing before sending out subsequent mailings. If you don’t get ANY response on your first mailing, don’t bother sending the rest of the sequence. Your mailings will likely get more notice with sequential mailings that vary the headlines and the format so people don’t think they’ve already seen the piece and know what’s in it. IF you just send the same old sales piece, then they are less likely to respond since they’ve already seen it before.
When customers buy your product or service, businesses have them entered into a “Sales Funnel” or “Customer Retention Path,” where they receive regular mailings or e-mails promoting the backend products. I’ve studied sales funnels/customer retention paths for years, and there is a science to them. They all involve a lot of testing, and they take time to implement. But once they are fine-tuned, they create HUGE customer lifetime value.
That lifetime value often makes the time and effort it takes to set up a Customer Retention Path more than worth it.
I have a number of different clients who sell introductory courses that teach how to use a particular investment technique. The back-end usually consists of some kind of continued subscription to a website or newsletter that provides the information needed to implement the program. Then, there might be various video programs, advanced course modules, advisory services, coaching, or even live seminars that are available for purchase.
A Successful Customer Retention Path
In order to create a successful customer retention path, you need to know what products to offer, what order to offer them in, and what price points to use. It takes dedicated trial and error to get this knowledge, but a well-designed sales funnel can completely transform the nature of your business.
The best way I’ve found to put together a sales funnel is to start with your lead product. What is the first item that most people will buy from you?
Then, figure out what product or service you offer that will complement that product. Outline the next 3 or 4 or 5 products or services that are congruent with the initial product your customer buys from you. Next, try mailing (or emailing) a sales piece out for each product or service. You’ll want to mail them a week to 10 days apart.
This will give you…
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