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In the past, you may have heard marketers use the term ‘back end marketing’ to refer to a number of different things. For instance, you may have heard it in the specific context of ‘one time offers’ that appear on product download pages. Or you may have heard it used to refer to loss leaders, which are products that are sold at a loss for the purpose of finding leads, which can then be converted into buyers. While these two examples may seem considerably different, they both are types of back end marketing.
So what is back end marketing exactly? The best way to explain it is probably to say what its purpose is on a functional level and that is to increase the profit margin of a business by allowing it to pull in more money out of fewer customers. Another key to understanding back end marketing is to understand how it is applied. And the answer to this is that it is usually applied by soliciting additional, and often higher value, sales from existing customers, rather than trying to find new ones.
In general, back end marketing involves concentrating your efforts on people you have already sold to; not on people who have never previously purchased a product from you. This is desirable for two reasons: 1) because you do not have to convert a new lead, since you already have this person’s trust; and 2) because existing customers tend to be more willing to pay for higher-end products, since they know you are credible.
Thus, back end marketing is a useful tool for increasing sales without significantly increasing costs. Indeed, some marketers estimate that it is roughly 10 times less expensive to generate the same amount of profit through back end selling than it would be through brand new prospects.
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