Upselling 101: How to Boost Revenue
Once you have a customer on the line, you are in a perfect position to expand their investment into your company. Here are some of the best upselling techniques to use for a revenue boost.Personalization is King
Are you showing every customer the same product on your landing pages? If so, you're not paying close enough attention! Make use of real-time behavior patterns to determine the best products and features to show your customers as they near the end of the conversion process.
It's generally accepted that no upsell should increase the price of the order by more than 25%. For instance, if your customer is looking to buy around $200 worth of product, $50 should be the max price of the upsell shown. Shopping cart filters can make this happen for your business easily.
Use Familiar Products
You should only introduce complementary products during the upsell. More than that, you should only introduce products that your customer will be familiar with. This is easy enough to track - you can make a note of the product pages that your prospect visited before purchasing. Unfamiliar or irrelevant items will only confuse the customer and may misdirect them from the sale.
Hit them once, and hit them hard. Everyone can appreciate a good upsell, even if they don't bite. If you show products that are relevant to the purchase and the customer, they can at least say, "That makes sense. I may purchase the next item during my next visit to this site." However, if you hit them constantly with upsell after upsell, especially for products that are irrelevant to them, your authenticity diminishes.
The "sale stack" works wonders on customers who are looking for a deal. Your first discounted price comes from the initial sale. You then present your prospect with an additional discount if they also participate in the upsell. In many cases, the flashing red is just the signal that a prospect needs to buy both products as a bundle rather than put the sale off. This strategy is especially poignant if the upsell product is highly complementary to the initial product.
Give the prospect a few options on the upsell, but not too many. If you want to maximize revenue, you still need a clear choice in terms of the upsell. The choices that you give are meant to make the winning choice look even more obvious.
Even the largest retailers have recognized upselling as a vital part of the sales process. Since 2006, Amazon has noted that upselling accounts for at least 35% of its revenues. Take direction from the best. Upsell tactfully, and you will certainly experience similar results.
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