If you are looking for a new way to boost your customer acquisition, then your next test needs to include Pay What You Want pricing.
Here at SamCart, we get to watch thousands of businesses sell their own tennis training, guitar lessons, gym memberships, adventure travel packages, tactical sunglasses, and everything in between.
While the products, goods, and services they sell vary, there are definite themes that set them apart. Like their ability to sell a ton of stuff…
Customer Acquisition Fuels Growth
Here’s one thing that SamCart users understand = thriving businesses focus on Customer Acquisition.
(AKA = Anything that brings in new customers)
The most important asset in your business isn’t your email list. your social media followers, or your blog readers…
The single most most important asset in your business…is your customer list.
The more customers you have, the bigger your business can become. We’ve all heard the same old stats about how valuable repeat customers are to a business, so we don’t have to get into that.
But let’s just do it anyway…
1: Repeat customers spend +67% more than new customers.
2: Your top 10% of customers are worth more than the remaining 90%.
3: Selling to an existing customer is 12X easier than acquiring a new customer.
4: Oh, and it’s 5-7X cheaper.
If those numbers don’t get have you salivating to build your customer list, then you must not like nice things…
But this is exactly why you see so many inventive Customer Acquisition strategies that are designed to make it easy to buy!
Each of these powerful features is sponsored by SamCart, “The Official Platform for building Massive Customer Lists”.
The most important asset in your business is your customer list.Brian Moran, SamCart
Where The Real Money Is Made…
Your business has two sides. You have a “Front-End” and a “Back-End”.
The Front-End is anything that brings fresh people “in the front door”, and into your world.
The Back-End is what you do to make money from people once they are in the door. This is the side where allllll that money is waiting to be made…
Here is what sets thriving businesses apart: an established Back-End.
Thriving businesses are always searching for ways to get more customers into the Back-End of their business. Because like we covered before, that’s where the real money is made.
But I bet you spend the huge majority of your time focusing on Front-End stuff. Go into any Facebook Group where online business owners hang out, and conversations center around how to get profitable on Facebook Ads, what equipment to use for starting a new podcast, what color scheme to use for a new lead magnet…
As of this moment, SamCart has 658 sellers who make 6-figures. Study those businesses, and every single one of them understands that 90% [Made-Up Number Alert!] of your revenue comes from Back-End sales.
4 ‘Pay What You Want’ Strategies To Test Right Now
Getting more customers in the door is a huge opportunity waiting to happen. Which is exactly why you should test out ‘Pay What You Want’ pricing.
If the name of the game is to get a bunch of customers “in the door”, then ‘Pay What You Want‘ pricing could be the difference for your bottom line.
Letting customers choose their own price removes friction from the buying process. Buying is all about value. Is what you’re offering worth more than the money you’re asking someone to pay?
Well when the customer has some flexibility to choose what your offer is worth to them, you make it easier to say, “Yes!”.
And to get some ideas rolling, here are 3 different tests you should run to see if ‘Pay What You Want’ could give your Customer Acquisition strategy a solid boost.
1: Change ‘Free + Shipping’ to ‘Pay What You Want’
‘Free + Shipping’ is so hot right now.
And with good reason. “Just pay a few bucks for shipping” is a great way to get prospects to say “Yes!” to your offer. Typically, any Free + Shipping offer will send new customers to a one-click upsell offer (or two…) in an attempt to give a boost to your average customer value.
Sure, you can sell something cheap, but gotta make something off it right?
Enter Pay What You Want pricing. With Pay What You Want, you could keep your “Suggested Price” at zero, but some customers can (and will!) elect to give you more!
All customers can still go through the same upsell flow, but instead you get a chance to boost your customer value by a few extra dollars just by giving customers the option to give you more money.
And if you’re one of the millions of people trying to find a way to make more of your money back from paid advertising, like Facebook Ads, every dollar counts. A higher Return On Ad Spend (‘ROAS’) could be one test away.
2: Convert Your Lead Magnet To Premium
Ever feel like your audience doesn’t value the free stuff you literally give away? You spend all this time creating a killer Lead Magnet to grow your email list, but no one really takes action.
Instead of trying to give it away, why not try it out with Pay What You Want pricing? All of the sudden, your Lead Magnet isn’t “free”. It is a premium piece of content that only paying customers can get.
On top of bringing in extra revenue that was going to waste before, you are gaining a customer. If you gave me the option between growing my email list or customer list…I know which one is more valuable. And it’s not even close.
3: ‘Pay What You Want’ Bundle Offer
If you have ever visited sites like Humble Bundle or Geek.com, you’ve likely seen them put together bundle offers like this one…
These sites bundle a number of different products together to create a brand new offer, and let customers choose their own price to get it! The value of getting so many different items in one bundle, at a price that you can change makes for one irresistible offer.
Creating new offers like this is a great way to create new customers. And like we’ve already covered, the more customers you have, the better.
4: Pay What You Want Webinar Registration
Do you feel like it’s harder to give away “free stuff” now? Well, it is!
People have more demands on their attention than ever. It isn’t enough to scream, “Hey I’ve got this free thing!” anymore. People value their attention + their time more than that.
People put their attention the same places they put their money.
If you want to make sure the right prospects are showing up at your next live webinar, have them pay for the right to join. You may get less people than if your registration is free, but I guarantee you will get the right people.
Even paying as little as $1.00 mentally anchors your registrant to your event. It completely changes the perception of your event. Instead of some useless freebie, your event is viewed as premium. Something that shouldn’t be missed.
Test Pay What You Want Pricing On SamCart
Early stats on Pay What You Want tests across SamCart are showing some awfully high conversion rates. Time will tell exactly how effective this whole strategy is, but now is the time to test Pay What You Want in your own business.
Start filling up your customer list by introducing an incredibly easy way for your customers to say “Yes!” to your offer.
That’s what Customer Acquisition is all about, right?
Let us know how it goes. And make sure you grab a free trial to SamCart, so you have unlimited access to the platform designed to help you convert more customers, boost the value of every order, and create repeat customers again and again.