Finding new customers can be very expensive, so it makes sense to squeeze some extra value from as many customers as possible while also offering enhanced value on the extra purchases your customers make. You can do that by adopting a number of profit-enhancing “upsell” strategies to encourage customers to spend more.
For example, let’s say you’re selling a health supplement for $20 a pop. Tell people they can buy another one of your products for a $5 discount if they add it to their order. That’s upselling! Your goal is to get more money out of the first sale of each and every customer.
Here are eleven upselling strategies you can adopt to increase your profits:
1. Deluxe Upsell: Sell a basic product and tell people that for a little more money they can receive the deluxe version instead.
2. Money Upsell: Offer people the resell rights on the product they are purchasing from. You could charge an extra $30 dollars to get the reproduction rights. This is especially effective for information products such as e-books.
3. Discount Upsell: If you’re selling a product that people might order again in the future, such as health supplements, you could offer them a second bottle of the same product at a discount.
4. Time Upsell: If you’re selling a product or service people subscribe to, a magazine or an e-newsletter for example, you could offer them a 50% discount if they subscribe for two years instead of one.
5. Quantity Upsell: This strategy resembles the discount upsell, but instead of offering a discount on an extra product purchase you can increase the discount according to how many products they order. If they order three they get a 10% discount, if they order 5 they get a 15% discount, and so on.
6. Package Upsell: If you’re selling a range of related products you could offer your customers a package deal. Tell them the products are much cheaper when they are all purchased in a single package as opposed to purchasing each product separately.
7. Affiliate Upsell: Offer a related company’s product as an upsell. This is a good strategy if you sell affiliate products alongside your own products. Offer a discount on the joint purchase as a way to introduce customers to your affiliate products. (Make sure your affiliate commission is bigger than the discount you offer, though!)
8. Free Upsell: You could offer a free sample or trial of your product (your first sale would be free) and then tell people that if they order the full version right away, or within a specified time limit, they will get a discount.
9. Extra Upsell: There are many things you could charge extra for at the point of sale. It could be gift wrapping, imprinting, customized designs, product cleaners (if you are selling shoes or furniture for example) and so on.
10. Extended Upsell: If your product comes with a warranty, you could offer to extend the warranty one more year for only $30.
11. Gigantic Bonus Package Upsell: If you are selling software or information products via the Internet you can offer a huge bundle of extra products for a mouth-wateringly low price. Tell the customer that the special low price bundle will not be offered again if he declines the purchase today.
So, you can use one or all of these strategies to increase your profits at the point of sale. Don’t be afraid to use your imagination to come up with other profitable
upselling strategies to squeeze extra value out of your “dear” (in both senses of the word) customers!
Increasing Profits with Upsell Email Marketing [ Video ]
Creating the Perfect Upsell
An upsell is one of the greatest weapons in a marketer’s arsenal, but what is a perfect one?
Essentially, an upsell involves recommending another product to the customer to add to their shopping cart before they reach your order form. You may have noticed that McDonalds upsell all the time in the form of “would you like fries with that” or similar.
Without an upsell, you are making basic sales and restricting your profits. However, *with* an upsell, you are maximizing your sales and also helping people out with new and relevant products.
And that’s the key to a perfect upsell, to be relevant. Without relevancy, your upsells will get a very low conversion rate and may even drive the customer away from buying anything at all.
For example, a visitor is at a website and is about to buy an information product about how to make money online using Internet Marketing. Before they get to the order form, the website will suddenly upsell them with a dog training book.
Now even though a lot of those buyers may own dogs, this is not what they came to the site to buy. Instead, the website owner should upsell them with something relevant, such as another valuable video course or a series of live tuition’s.
And that’s my next point. Whatever product you’re upselling must be valuable to your customer. So it’s no use trying to upsell them a PLR e-book which everyone already has stashed on their hard drive somewhere. They must find the product to be good and useful.
Finally, here’s a mistake which I see all the time. If you’re going to implement an upsell, don’t have any more than 2 upsells, as this will mostly likely make people leave even before buying your product.
Also, the amount of upsell is determined by how much pre-selling the customer has gone through.
For example, if there has been several e-mails about it and the customer is really excited to buy it, he/she won’t mind skipping two pages. However, if it’s a random encounter and they see 3 or more upsales, then they may even see your website as a ‘spam site’.
In summary, the key to a perfect upsell is for the product you’re offering to:
1) Be relevant
2) Provide value
3) Don’t overdo it!
With these effective tactics – creating a powerful upsell offer shouldn’t be as difficult as most will try to convince you it is. The truth is; you need to be creative. What we’ve laid out above may not work 100% as effectively as it has for us here at BrandBlast; though, through adaptation and modifying it to your needs – you can create a powerful upsell system to have your profits increase substantially!