They say… more people are willing to take an action out of “fear of loss” than they are out of “possibility of gain”.
Meaning: the average person is more likely to take an action to prevent $100 from being taken out of their bank account than they are to get an additional $100 put in their bank account.
Yet, every day, many entrepreneurs sit idly and allow a lot more than $100 to walk out of their future bank account.
In previous blog posts I’ve talked about the purpose of your front-end marketing (marketing to acquire new customers) being to acquire maximum new customers at break even.
And, the purpose of your backend marketing (marketing to existing customers to generate further transactions) being to maximize profit and lifetime customer value.
In order to maximize lifetime customer value there are three marketing sequences you should have in your business:
1. The Reselling Marketing Sequence
This is the marketing sequence that begins immediately after customers purchase. And, the goal is not only to fulfill on their order (i.e. send them a download link, give them membership access, etc.)… it’s also to “resell” them on their purchase.
This sequence should be engineered to deliver the product/service, exceed customers expectations, improve consumption of your product, build relationship and bonding, generate testimonials, and finally, generate referrals.
2. The Retention Marketing Sequence
This marketing sequence is ideally used with any form of continuity program (i.e. membership site, monthly newsletter, CD, or DVD, or monthly service). The objective of this marketing sequence is to keep clients and members active and continuing with their continuity.
This sequence should be engineered to show clients and customers their ROI (whatever that may be) with your program, to remind them of the benefits they’re getting with you, to tease future content/service, and to reward them with little gifts and trinkets to keep them around.
Think of it like this: how much is a continuity client worth to you on a monthly basis? How much are you willing to invest in keeping that client active with you?
3. The Reactivation Marketing Sequence
The objective of this marketing sequence is to turn cancelled and/or refunded customers/clients back into active customers.
Just because a customer cancelled or asked for a refund on a particular product doesn’t mean they aren’t interested the topic you’re teaching or the service you’re providing. Maybe that particular product or service wasn’t the right fit for them. Or maybe it wasn’t the right timing for them. Or maybe there were outside extenuating circumstances.
Regardless, past clients/customers have value. And, you shouldn’t simply give up on them and let them walk out the door.
First, you should have a pre-cancellation sequence in place that reminds them of the benefits they’ll be missing out on if they go through with their cancellation.
Second, a little while after clients go inactive, you should have a sequence in place, with a special offer, to bring them back into your fold.
This can be applied to clients/customers who cancel a continuity program. And, this can be applied to customers who go a certain amount of time (beyond the average) without purchasing another product or service from you.
Just remember:
The most expensive activity in any business is acquiring new customers.
When you get them, take strategic and proactive measures to keep them active, buying from you, and reaping greater and greater value.
The above three sequences will help you do just that!
