OK, so your internet marketing business is off the ground and the sales are rolling in… congrats!
But your job isn’t done yet…
You have customers, now you need to make sure you have happy customers.
And a great and simple way to do that is with a stick campaign.
A stick campaign is an email sequence that begins when a prospect becomes a customer.
The goal of the stick campaign is to nurture your new customer relationships, answer any early questions they have, and get them to consume your totally awesome product.
As it turns out, that last piece is hugely important for lowering your refund rate (and increasing your average customer lifetime value), which is a key component to your long term profitability. It’s also a very simple thing to implement, and one that can translate to happier customers and more dollars in your pocket almost immediately!
Now I myself was guilty of running my first successful internet business for almost 2 full years without a stick campaign in place… durhh!
But if there was one silver lining in this mistake it is that I got a great view at just how effective a simple stick campaign can be… and I’m going to share those insights with you here today.
Before implementing my stick campaign:
Total # of sales: 3,633
Total # of refunds: 365
Refund Rate = 10.0%
After implementing my stick campaign:
Total # of sales: 739
Total # of refunds: 51
Refund Rate = 6.9%
The refund rate decreased by 31%!
Now let’s plug in some hypothetical numbers to see how this translates to the bottom line…
Let’s say your average customer spends $100. Lowering your refund rate from 10.0% to 6.9% means you keep an extra $3.10 per customer.
If you have 100 customers per month, that turns into an additional $310 per month ($3,720 per year).
If you have 200 customers per month (approximately where I was at when I implemented it), that turns into an additional $620 per month ($7,440 per year).
And here’s the best part…
My stick campaign consists of 4 short emails!
It was probably 2 hours of work and I essentially gave myself a $7,440/year raise. You can take a pretty killer vacation for that 🙂
And of course as your sales grow your stick campaign will continue to grow with them and pay even greater dividends…
Now I am by no means an expert on writing stick campaigns, but here are a few notes to help you get started:
- Reassure them of their purchase and show them that you care about their success… “Welcome and thank you again! You’ve made a great decision and I’m super excited for you to get started with XYZ…”
- Show them exactly how to consume your content… where to get started, what specifically to do… ie, “I know there is are a lot of videos to watch in the membership site, so start by watching video ____ which is going to show you exactly how to get started in 3 simple steps…”
- Over-deliver. The stick campaign is a great opportunity to send surprise extra bonuses as icing on the cake of their new purchase
Follow these guidelines and adapt them to suit your product… but no matter what you do, make sure you use a stick campaign! It is an easy way to help your customers get the most out of your products and lower your refund rate.
So go ahead, do it right now!