TheBusinessCommandos.com

I find it alarming today the number of businesses who aren’t focusing on building a database and taking advantage of the ‘Back-End’.

There are countless examples of the value in building a database, including Google buying Youtube for $1.6 Billion. It is imperative to maintain and update your client data base to keep them informed of what is going on with your business and about any special offerings or promotions they may be interested in and keep that all important ‘top-of-mind-awareness’.

Having a database of clients that you have formed a good relationship with is one of the most valuable assets you can have in business today.

All of the money is generally made in the ‘Back-End’ of a business, not the ‘Front-End’ where most business owners focus on.

Your database allows you to market to your clients for life, offering new products from your product range to make their life easier and further grow your business. It’s simply a process of continuing to add value to your clients to help them get more and more of what they want.

It’s extremely important to know your metrics, to take full advantage of the ‘Back-End’ business strategy…

For example one of my mentors in the States used to manage a leading car dealership and they would buy Toyota Camry’s for $18,399 and sell them for $17,999, which was a $400 loss on the ‘Front-End’, whilst their closest competitor was selling Camry’s for $18,999 making a $600 profit on the ‘Front-End’.All of the competitors were complaining to the factory that my mentor’s dealership must have been getting the cars cheaper than they were and they were loosing all of their customers.

Here’s how it was possible, my mentors dealership knew their metrics and understood the business ‘Back-End’ strategy and they knew that on average every new car they sold people would spend on average an extra $1,400 in extras, so what looked like a $400 loss was in reality a $1,000 profit.

See the other key strategy they employed was to offer a value package with every vehicle, which would include things like, security system, insurance, sports add-ons, etc, which was made up of high margin items, so the retail price of the package was say $3,000 and customers could get it for $1,400 if they purchased now, plus if they took the value pack option they would get their finance for 4% instead of 6% making it an absolute no-brainer of a deal.

This is just one example of the power of knowing your metrics and ‘Back-End’.

Join the successful minority today, build your database and focus on your Back-End!!

Aaron Parsons.