Big Beautiful Back-Ends (Back-End Advertising)
When people think about advertising, they tend to think of front-end, “push” advertising.
Grab the attention of new prospects. Turn those prospects into leads. Then, turn those leads into new customers.
A lot of business owners spend most of their advertising budget on expensive front-end offer advertising. All the while, ignoring the much more cost-effective back-end advertising.
Here’s an important thing to understand; advertising is just the act of buying customers.
Or, more precisely, it’s the act of buying a sale.
You’re spending money to get people’s attention. But you’re really spending money on getting them to spend their money with you.
And the money it takes to get an initial purchase from a new customer… is almost always more than what it takes to get an additional purchase from an already existing buyer.
Selling to an existing satisfied customer is way easier than selling to a skeptical prospect.
Where it might take $20 in advertising to get a new customer into the store to buy a pair of shoes…
A current customer, who already loves your shoes, might come in and buy a new pair… with only $5 spent on advertising to them.
Take some of the money you spend on trying to get new customers, and use it on remarketing to your existing customers.
I recommend spending at least 20% of your ad budget on remarketing to already existing customers.
That 20% often brings in as much business as the other 80% spent on trying to bring in new leads.
Just adding an upsell at the point of purchase can cause a huge jump in profits. It’s why they always have a bunch of impulse items at the checkout stand of the grocery store.
If you’re not doing so already, create a list of buyers and start sending them exclusive promotions.
Offers to people who’ve already raised their hands and said, “Yes, I like doing business with you,” consistently bring in the highest return on ad spend.
So, to get the most out of your ad budget, make sure you pay attention to that big, beautiful backend.