The most underutilized asset in any business is the customer. Most businesses are so focused on attracting new customers to boost revenues that they miss out on the most obvious and glaring source of easy profits: Existing Customers through back-end products.
Most businesses only sell the primary product or service to their customers. Very few business owners know how to up-sell the clients or customers to more than what they ask for.
Doctors sell treatment only to patients who walk in sick.
Hotels and restaurants sell only food to clients who walk in.
Phone stores sell only phones to clients who walk in.
When all of these customers leave with the primary product, the earnings for the doctor, the hoteliers and the phone vendor end until the next time the customer needs the product or service again.
The solution most of these business owners implement is to get more customers to repeat this process over and over again. The assumption made is that, all these customers and clients are fully satisfied and would not need any other service or product for now.
Wrong!
Most of these clients and customers would have bought something else and can come in for more if you know how to present the up-sells.
These extra products and services that you can bundle with the primary product, to bring in extra revenues are the back-end products.
Back-end products give extra utility to the main product or service bought by the customer and the good news is that most customers are willing to spend extra for extra value to their product or service.
When a patient walks into the hospital, the doctor has to treat the immediate sickness. But after that is done, the doctor can offer a few back end products to the patient. they can offer a wellness program paid monthly to ensure the patient does not easily fall sick again. The doctor can also offer to become a concierge doctor and spring into action immediately the patient needs them for an annual fee.
The restaurant can offer an extra back-end products as for example a service to prepare the food at the customer’s home for either private dinners or outside catering for events at a fee. The restaurant can also offer the service of the chef personal teaching the client how to cook for a handsome fee.
The phone store can offer upgrades on the phone bought. they can sell a better battery, a power bank, a metallic cover for extra protection, high quality music head phones, an extended warranty at a fee, an exchange of the phone at a later date with a new one for an extra fee etc. A these are extra products sold together with the phone, for extra cash.
All these are examples of business owners in different industries, making extra money from the same client or customer who walks in to their business by being imaginative and creative.
Customers have a lot of money to spend even though you may assume not. The best strategy therefore is to always have options available just in case the customer is willing to spend more.
So how do you create back-end products that customers will go crazy for?
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