Most of the companies failed to scale because they only sell 1 time to their audience, and leaving the money on the table by missing out on the potential of the Chatbot funnel. In this article, I will explain why you should not miss out on this huge opportunity, and how you can maximise repeat sales and increase your customer lifetime values.
In the year 2019, I attended a paid workshop experience and it was one of the best things that ever happened to me.
And this is new for me too. At one point in the past, I was helping a client to generate leads. We get around 3600 participants monthly at that time.
And some of this audience converted to join our paid basic workshop.
I walked through the event. The participant was engaged. Everyone was amazed by what they had learnt during the workshop. There are more than 300+ participants in the paid workshop.
At that point in time, I felt pretty cool right, we managed to turn 10% of the cold audience into paying customers.
But what happens next, surprises me and totally changes my whole perspective of marketing.
The real profit is not what you can sell at the front end, but it’s in how much your raving fans are willing to pay at the backend. I will explain next how this happens.
In hindsight, I can see that the success of this workshop was not just about what they were teaching but also because repeat customers are willing to pay for it.
In the middle of the workshop, the speaker starts to pitch for the advanced class. This is where the magic happens. Through his pitch and storytelling with a strong testimonial presented, you will be dumb if you still don’t take action to purchase this limited offer that could possibly change your life.
The high ticket advance workshop is selling at RM 20,000 per person. And I saw among 300 participants that day, 30% of the participants rushed to purchase the advanced workshop. This means, the speaker generated about RM 2 million in a single session.
Not only that, there are higher ticket value products in the backend funnel that are selling at RM 40,000 or even RM 100,000. I’m totally blown away by the number.
With a high repeat customer base and excellent event marketing, the speaker was able to create a sense of urgency for attendees to push the audience to take action.
When I asked them about the success rate from this workshop，they told me that around 80% of people who attended their workshop are repeat customers or they will recommend it to others.
This is what we call maximise repeat sales.
Top companies are the companies that have consistent repeat sales. And all these loyal repeat customers build a strong foundation and support for the companies to grow.
Apple success is because they managed to create an ecosystem for their fans and keep their fans there. After you are used to the Apple ecosystem, you will feel it’s hard for you to use another platform as all your apps are linked to each other, and there is no way you can easily jump to other platforms.
The key is how we create multiple offers for our customers as they are levelling up.
There is no limitation of the offer, as long as you can deliver the values.
It seems simple, but repeat sales are one of the key factors in business.
You might say, that sounds like a lot of work. I do not want to always need to push my client into buying more from me.
It’s not easy, I understand it. But if you can deliver more values for your customers to help them to achieve their ideal goal and dream life faster without all the guesswork. Does it worth the price?
If the answer is yes, then you have no reason to stop it. In fact, you must create the offer so that you can uplift your customer’s life with your product or service. For example, if our professional service, if we are able to help you make another 100k sale with our high converting chatbot proven framework, is it ok for us to ask for 10k in return for our service and experience? Sounds ok right.
If your answer is no, then you will need to work on it to create a better offer for your customers.
Many businesses make this mistake, they sell 1 time to their customer. And never think of how to create more valuable products or relevant services for their customers. As the cost per customer acquisition gets more and more expensive today, they suffer to stay afloat or even make a profit for their business.
It’s critical for every business to maximise sales by creating an upselling process, and we call it a chatbot funnel. A good funnel will be able to reduce your cost per customer and give you massive profit by tapping on your most loyal customers.
Based on research:
- 82% of companies agree that retention is cheaper than acquisition.
- 75% of consumers say they favour companies that offer rewards.
- 56% of customers stay loyal to brands which “get them.”
- 65% of a company’s business comes from existing customers.
- Increasing customer retention by just 5% boosts profits by 25% to 95%.
- 58% of companies pursue personalization strategies for customer retention.
Having repeat customers is the key to any business.
But how do you get repeat customers? In this blog post, we will discuss what repeat sales are, why they’re important for your business, and what you can do to maximise them by using a chatbot.
- Personalised Upselling
- Down selling at the right time
- Collect email to build trust and connection
- Create personalised limited combo
- Create loyalty program
- Create referral program
- Create viral campaign
Let’s start:-
Personalised Upselling
Upselling is a sales technique that appeals to customers by persuading them to spend more on an item or items. One of the most effective strategies an e-Commerce business can use to maximize profit is upselling and cross-selling.
The probability of selling to people who have bought from you before is 60-70%, while the probability of selling to someone new is 5-20%.
Selling to a customer who trusts you is easier and cheaper than selling to someone who doesn’t know your brand.
While personalised upselling refers to the use of customer data for one-to-one marketing with customers at scale.
Once the audience purchased a product via our High Converting Chatbot, we will show them relevant upselling with what they purchased in the chatbot. They can either take action to buy the limited 1-time offer or move to the next step. By having upselling in place, we are able to increase our revenue by 20-30%.
The real power is we can show people what they bought and then offer them a limited time offer. For example, if someone has bought an ebook, we might show them an audiobook version that goes with it for an extra 9 dollars.
We can also offer repeat sales promos. This is when we show people items that they have previously bought, and then ask them to buy the item again. For example, if someone has purchased a pair of running shoes from us before for $250+, we might show them another pair in their size for half price ($125).
70-95% of revenue comes from upsells and renewals on average (for companies who offer them). And most importantly, upsells are 68% more affordable than acquiring a new customer.
When the buyers are in buying mode, it’s the best time to create a relevant upselling offer for them. Not everyone will take it, but the one who will take it is the one who will get the most from your offer.
The most crucial thing you can do to maximise the value of your upselling efforts is to show customers a personalised product or service that’s relevant to what they’re buying now. Not show the other 10 products that you have, but show them the ones that are relevant to them right now.
Upselling ads can turn a campaign that is losing money into one that generates profit. And create instant revenue for a lot of businesses to grow further.
Down selling at the right time
If the buyer does not want to make the purchase with an existing offer, we can send them another down selling product with a lower selling price.
They might be thinking now it’s not the right time for them, or they like to have more promotion to make the purchase decision.
We can tailor to this audience by selling a smaller value product by having a lower value product. Having down selling helps the companies to create cash flow to liquidate the marketing cost, and help the companies to generate more revenue in return by tapping on the same group of audience.
For example, if purchasing 1 carton (12 bottles) of fruit juice is too much, we can down-sell it to 6 bottles with 1 more free juice, it looks like a no-brainer exciting offer to our audience.
If purchasing a 30 days course is too much for some audience, we can down-sell a limited 5 days challenge to encourage the audience to take action that caters to their need right now.
In conclusion, it is important to maximise repeat sales and increase customer lifetime value for your business profitability; down-selling at the right time can help you create cash flow and generate more revenue by tapping on a group of the audience while helping you avoid getting into sticky situations with repeat customers.
Collect email to build trust and connection
And some of the audience are not ready to buy now, no matter what is on offer. And the best thing we can do now is collect their email to build trust and connection with them.
Collecting email addresses is a great way to build trust and connection with potential customers. And while it’s a simple act that can be done at any stage of the sales process, it’s particularly important when you’re just starting out you need to have clients on board if you want repeat business.
The act of collecting email addresses is one of the simplest marketing activities a business can do, and it’s especially important when you’re just starting out and need repeat customers.
For example, when we are running the campaign, we get a lot of leads that show interest in our offer and come to the messenger chatbot and ask about more. They are not ready to buy now, what we can do is by giving them a carrot and asking for their email in return.
Hi [First Name], can we have your email to update you on our latest package and promotion, we will also share some interesting funny stories with you.
After collecting email, we can link the data with our email marketing software and start to send out preset email sequences.
This action creates a big difference in our marketing performance.
According to a survey by eMarketer, email marketing generates 25% of the overall revenue from companies surveyed.
There is an absolute need to collect your audience email and nurture your relationship with them.
Create personalised limited combo inside Chatbot Funnel
Once the customer has purchased with us, they become our loyal customers who know our product or service benefits. It’s easier to sell them advanced products, as they understand our product values.
What we can do is create a combo of products with bundles for these groups of audiences. Some of the examples are:
- Buy 3 FREE 1
- Subscription Monthly Plan USD 99
- 6 months contract with special price
- Product + Training + Service combo
We can draft these exciting offers and send them over to our list of audiences through email marketing or Facebook Sponsor Message. If they purchased shoes in the past, then most likely they will be interested in a new shoe offer, we can segment these audiences and show the relevant offer to them.
Remember, no one likes spam messages or email. Don’t make your audience hate you by sending spam messages to everyone on your list.
Personalisation is necessary in order to meet the needs of different customer segments, and it’s easy for businesses to segment their audiences by purchasing history, past behaviour, demographics or other preferences. The key is understanding who your customers really are and presenting content tailored for them specifically!
By having a personalised combo, we can repeat the sale and increase customer lifetime value.
Create loyalty program with Chatbot Funnel
Do you know that the chatbot is able to track the purchase amount and frequency? By having this ability, we can create a customised loyalty program for our audience.
The chatbot is designed to help people make repeat purchases of the company’s products. By having the ability to track the purchase history, we can personalise the user experience. For example, once they hit a certain amount of purchase we can reward our loyal customers with voucher code or special limited offers.
Chatbots provide an enhanced customer experience by personalising content based on purchase history and giving customers greater control over their data.
The best part is that for businesses who want to set up a loyalty program, there is no need to purchase another loyalty system as this is automatically integrated into the chatbot. And your audience can check the reward anytime they want.
Another thing that can increase the average order value is referral marketing.
Create referral marketing with Chatbot Funnel
Referral marketing is a marketing strategy that relies on telling your customers to tell people they know about your product. You reward the customer with a discount for sending them, which will lead to repeat business from the customer and their friends.
It’s very powerful as people trust their friends and family more than any advertising platform.
By having a chatbot, we can track their interaction and the lead source, so we can reward the right person based on the number of referrals they are bringing in automatically.
The customer can get a reward by telling their friend how awesome the product is and the new customer can get to experience a new product or service through their friend’s recommendation.
This creates a win-win situation for all parties involved.
Setup a Viral Chatbot Funnel Campaign
The ultimate tool that you can use to create a viral campaign is by using UpViral software and Manychat in the Chatbot funnel.
You can create a viral marketing campaign by telling your customer that they will get discounts when they tell other people. You need to set it up so the customer gets rewarded with a discount for every time someone buys something from that person, and the new customer needs to get a good experience too.
If you are running a B2B campaign, you can reward people by asking them to take certain actions. For example, you can encourage your audience to share this offer page with your friends, and if there are 3 people who opt-in for the offer, you will be rewarded with an exclusive ticket to our advance workshop.
If you are running a B2C campaign, the method will be slightly different. You can ask the audience to share the offer page with their friends. And they will get the chance to win certain rewards. Here the rewards need to be more valuable than the B2B rewards.
And you will need to tweak the offer and reward to get the right viral campaign.
By now I hope you understand repeat sales and increasing LTV are the keys to your business profitability as repeat customers give you a higher customer lifetime value because they buy more at a higher frequency than new customers, on average.
Conclusion:
Maximising repeat sales and increasing LTV is essential for your company’s success. In this blog post, we have provided you with some ideas about how you can increase repeat orders in your own marketing strategy using chatbots or referral marketing, creating a viral campaign, or incentivizing repeat purchase cycles through discounts based on product interaction data collected from a user’s behaviour over time.
Start implementing a chatbot funnel will help your business to create massive success from your repeat customer purchase.
