I’ve been running my car rental comparison business for a few years now and have always relied on the front-end sales to generate revenue and to keep the business running. Even though the business model works well, it’s only as of late that I’ve realised the missed opportunities that I could have used to grow the business’s revenue even further if I had implemented a backend sales funnel.
Fortunately, I’ve been able to learn from the missed opportunity and with my team, we’ve started implementing more upsells and cross-sells, once visitors to our website have committed to engaging a buying relationship with us.
If you run a web or even a brick-and-mortar business, there are a few things that you can do to boost the average transaction of your sales, so you can generate more income for your business in the future.
Realise that the first sale will get the visitor to engage in a buying relationship with you.
This is important because once the visitor has decided to buy a product or service from you, they will enter a relationship where they are prepared to give you their money in exchange for what you are offering.
Whether the value of the item is $1 or $1000, you want to get them to engage in a buying relationship with your business.
It is also important to realise that this is the least profitable part of the sales process and that you will actually make more money by engaging in more backend sales over the long-term.
Offer a set of tiered product-pricing that can increase the value of your sale.
This won’t work in every case, but if you can increase the value of your sales, it will be more beneficial for you.
Aim to have products at the following pricing points.
- Less than $5
- Less than $50
- Less than $100
- $500 product
- $1000 product
This will differ depending on the market that you operate in.
Sell a backend item that is completely owned by you.
Many web commerce platforms sell items from 3rd party suppliers, which means that their profit margins are low. Try to upsell or cross-sell an item that has been developed by your business. This will allow your business to trigger an easier sell with a higher profit margin.
Ideally, sell an item such as an information product. This could be a guide or a cheat sheet. There are many businesses that sell an insurance product, which adds more to the average transaction value. This is very common in the car rental industry where car hires excess insurance and excess reduction are upsold to the clients after the initial car rental purchase.
Cross-sell other partner offers.
You can use other affiliate or CPA partnerships that are relevant to what you offer and promote them to your audience. If the CPA partnership pays on a per lead basis, you can easily bump up the sales by a few extra dollars. You can find interesting offers through MaxBounty.
Encourage referral sales.
If your web business permits, add a coupon or cashback incentive that will encourage people to come back and use your services. Combine this by rewarding those people with the incentive once they refer 3 or more people to your business.
The backend sales are where you will make the bulk of your income. Implementing these methods will improve your business’s bottom line. You just need to see how the backend model can be implemented into your current sales process.