Upsells and Add-ons: Help Your Customers Make Better Decisions
For this week’s Tactical Tuesday post, we’re looking close at Upsells and Add-ons, and how they help your customers make better decisions, faster.
Since we just shared the four ways to increase lead values on Marketer Monday, I knew it’d would be a good time to brush-up on using upsells and add-ons to optimize the value of your leads.
Today, upselling exists in many forms but its core remains the same: give customers an opportunity to purchase additional items that will enhance, benefit, or supplement, their current purchase and/or experience.
So, keep reading for to find out how easy it is to use upselling to create a better experience for your customers!
When done right, upselling will build better relationships with your customers.
Creating upsells or add-ons can accelerate your path to profit by keeping your current customers happy and selling more to them.
According to a Marketing Metrics study, ” the probability of selling to a new prospect is 5 to 20%. The probability of selling to an existing customer is 60 to 70%
That huge gap is shocking at first, but think about it- What company would you rather buy from? One you’ve never done business with or one you’ve bought from at least once?
That’s why upselling is not just for optimizing the value of new leads and prospects, it’s actually great for converting returning visitors.
“Would you like fries with that?” The Original Upselling Technique
That little line has been making McDonald’s millions for decades, making it the perfect example of an effective upsell.
Market studies and research has proven when customers are in ‘buying mode,’ they are far more likely to increase their purchase.
What we, as marketers, should see in this is the immense value for making small ticket items available right at the point of purchases.
It goes for both eCommerce and brick-and-mortar stores, but the placement of an item ( online, links to small items right on the check-out page are very effective) right at the point of purchase is important.
If someone is already shelling out hundreds for a DSLR camera, why wouldn’t they just ‘go ahead’ and get the $20 memory card?
Make your customer feel like you’re helping them win.
When your customer wins, you win.
Upsells and add-ons, when done right, will build deeper relationships with your customers and increase the lifetime value of loyal customers.
The two big keys to successfully upselling is: 1) keeping add-ons and upsells related to your original product, and 2) being sensitive to your customer’s price range.
Comprehensive audience research is also critical to successful upsells and add-ons. Make sure you know your customers and that you understand their wants, needs, and preferences.
Upsells and add-ons work when you are able to ease the customer’s decision-making process.
Upselling is effective because it eases the decision-making process for customers. But to do it successfully you must not bombarding your customers with options! Check out this study for proof:
Professor Iyengar and her research assistants conducted a study on the effect of choices in the California Gourmet market. They set up booths of Wilkin and Sons Jams — one offered an assortment of 24 jams while the other had on display 6 jam varieties.
60% of the visitors stopped by the larger booth while only 40% flocked to the one with lower number of choices.
But 30% of visitors that sampled at the small booth made a buy while only 3% of the 60% visitors to the larger booth went on to make a purchase.
The takeaway: While you might know how to sell products online, you can’t make a sell to someone who has been overwhelmed and paralyzed with options during the buying process!
Upselling is an incredible technique that will help you convert leads and make sales, all while keeping customers happy and loyal. Now, go set yourself up and find creative ways to offer add-ons and upsells in your business!