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Tuesday, May 02, 2006

Optimize Your Online Business Profit Margin

What can you improve when you have been running an online home business site for a couple of years but your profits are not as strong as you would like? One option is to review whether you are getting enough traffic to your site. If you are satisfied with this aspect of your business, you might want to consider increasing your sales through the method of follow-up promotions. The beauty of this idea is that it does not necessarily bring more hits to your site but it does bring back more people to your site who will buy more of your products, thus generating more income. If you have customers, at least 30 percent of them will purchase from you again and this number will continue to grow if you use the follow-up techniques that will are presented in this article.

Take a good look at your customer base and realize that they are many times more likely to purchase from you than someone else if you follow-up with them. If they already like the product they purchased from you, there is a good chance if you offer them another product or a discount on what they already purchased, they will come back to your site and buy again, and then they will spread the news of your site to their friends. When customers like a product, they tell others. The more you follow-up and offer them items from your site, the faster your profits will begin to increase.

One of the techniques used in the follow-up technique is to reward your customers for using your site and buying your products. In addition, you can reward them for referrals to others. Special notices that in essence say thank you for the purchase, or offering a small discount if they come back or refer your business to a friend are all great ways to increase your profit margin. Another technique is as follows. When a customer signs up at your site, be sure to send confirmation messages that their request was received; however, instead of simply saying, “we have received your request,” add a little something extra in there. This is a great opportunity and great timing to offer them something extra from your website or a discount off their next purchase. Be creative and you will be amazed at the responses you will receive.

The importance of this approach is to let your customers know that you are following-up with them to make sure they are happy with their purchase and that if they have any questions or concerns they can contact you. Do not overwhelm them with sales pitches. Relate to them in such a way that they can feel you really care about their satisfaction with your product.

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