I was listening to Jeremy Reeves’ Sales Funnel Mastery podcast, and he had a whole series on how to increase your stick rate. One of the ideas really jumped out at me as something I thought you’d be interested in.
First, what the bleep is stick rate?
If you don’t know the term, it comes from the direct marketing business (and mail order before that — same rose, different name).
In direct marketing, we know guarantees sell. Consumers want to feel confident that a product or service will do what was promised. If you’re so confident you’ll guarantee it (the bolder the guarantee, the better), they can be confident in making the purchase.
It’s easier to say “yes.”
And so they buy.
(Incidentally, I DO NOT take on clients any more who don’t guarantee their products. If you’re not confident enough in your product or service to guarantee it, you shouldn’t be selling it. And forget that hogwash about customers taking advantage of you — yes, some will, but by and large that’s a total B.S. excuse.)
Which brings us to the term “stick rate.”
“Let me tell you a little something about being sticky…”
It’s how many customers STICK WITH YOU after the guarantee period is up.
If you sell 100 widgets, but 50 customers come back for a refund, you only have a 50% stick rate. If you sell 100 widgets and 95 customers keep them, you have a 95% stick rate. And so on.
It’s an important metric — because the sale isn’t truly “closed” until the entire guarantee period is over.
Or as I say when I’m putting a guarantee in a sales letter… “Your investment today isn’t mine until I earn it.”
Well, Jeremy Reeves was asking the question…
“If we KNOW we have a good product but our stick rate is too low (there are too many refunds), how can we bring the stick rate up?”
This is especially important when you’re dealing with continuity products… Subscriptions, memberships, and so on.
Or high-priced information products, where they’re often getting a TON of information… And it may feel like TOO MUCH to consume.
And Jeremy came to a solution he’s used with his clients often, and that my clients have used as well.
Here’s the solution…
Offer free “Virtual Coaching” via autoresponder email, AFTER someone buys your product!
For the first 7 or 30 or 365 days (pick what works for you) after a customer makes a purchase, you send out a series of follow-up emails.
The purpose of these emails is to help the customer get started…
… Get engaged and consuming the product…
… And get maximum value from what they’ve purchased, as fast as possible…
The reason this will increase your stick rate (and decrease refunds) is simple. Unless your product sucks… And it better NOT… The #1 reason you’re getting refunds is because your customers have not used the product.
And this doesn’t just apply to information — it can apply to ANYTHING.
For whatever reason, after they’ve purchased, they don’t start using the product immediately… Not only that, they don’t start using the product within the first week… Or the first month… All the way up until that guarantee deadline… When they suddenly realize…
“Oh, wait! I can get my money back!”
At which point they call you, and you’re stuck issuing a refund. No matter how much they would have loved the product if they’d actually cracked the shrink wrap.
But let’s say that within a few minutes of buying your product, they get an email. It says, “Thanks — now here’s how to get the most from your purchase.” And it details their first step to getting immediate value from your product.
Further, it explains how over the next few days, you’re going to keep giving them valuable tips for how to maximize the value they’re getting…
And you deliver on this promise in spades. Encouraging them, step-by-step, to get in and really get use out of your product.
How much harder does it become to ask for a refund after each of those emails?
If you really deliver, this could shrink refunds down near zero.
It works. Try it.
Oh yeah — and I promised I’d show you how to increase sales with this, too.
Easy… Include it in your sales letter or promotion. Explain how you’re going to give them virtual coaching through email to increase the value they get… Make a big deal of it — because it is a big deal.
If they’re already sold on the product, this “Virtual Coaching” will only increase their desire to buy.
And your sales will increase.
To bigger breakthroughs,
Roy Furr
Editor, Breakthrough Marketing Secrets
http://www.BreakthroughMarketingSecrets.com/
PS — I’d love your comments below!
