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What is an Upsell?
An upsell is a marketing term for the practice
of suggesting an additional product, typically,
a higher priced replacement product or service
to a customer who is considering a purchase. Up-selling
usually involves marketing more profitable services
or products, but up-selling can also be simply
exposing the customer to other options he or she
may not have considered previously.
What is a Cross Sell?
A cross sell is a marketing term for the practice
of suggesting related products or services to
a customer who is considering buying something.
Upsells replace the product that the customer
initially expressed an interest in and replace
it with a higher price product or product bundle.
A cross sell adds an additional product on to
the order. The two terms are often used as synonyms
because ultimately the goal is the same, sell
the customer more!
What is a Bounceback?
A bounceback is similar to a cross sell, but it
occurs after the sale in additional offers made
to the customer.
Developers spend a tremendous amount of effort
and money to get a customer to their "Buy
Now" page, do not overlook the small opportunities
to increase their purchase size.
1. Related
The most effective upsells are closely related
to the initial product purchase. A properly designed
upsell will convert 75% of the time! Some upsells
more than triple the customers total and still
convert at more than 50%.
Cross Sells on average convert 20% of the time.
The name and relationship to the initial product
can affect the cross sell conversion rate.
The best time to offer customers options is during
the purchase process when they have their credit
card out. Bounceback offers convert at a much
lower rate, only around 5%of bounceback offers
convert.
2. Discounts
Discounts are a great technique to encourage the
purchaser to buy more. Software developers can
capture impulse purchases by offering discounts
and by making the customers feel like they are
getting a bargain.
3. Make them feel special
As part of the offer, tell customers that
because of their purchase they qualify for a special
price. Making a customer feel special will increase
their brand loyalty
4. Limited
Limiting the time that a discount is available
will often push the purchaser to buy. The easiest
time to sell is when the purchaser has their credit
card in hand. Offering customers a time sensitive
offer "purchase within the next 24 hours
and get an additional 20% off", might be
just the nudge the customer needs to make the
purchase.
5. Limit Options
Do not provide the customer too many options as
it can cause confusion during the purchase process
and might lead them to abandoning the order all
together.
6. Mix It Up
A cross sell or bounce back offer does not need
to be software, you can cross sell CDs, extended
download service, maintenance agreements or priority
support. Try different options and measure your
results.
7. When not to Upsell
If you have a high ticket item and the upsell
is small or unrelated, it is not always benefitical
to upsell. Regardless of the upsell you will have
a small percentage of abandoned orders, in most
cases this abandonment is a risk worth taking,
the only time it is not is if you are selling
a high ticket item and the upsell is small or
unrelated. Do not risk losing the order over a
small priced upsell.
Related Articles:
Upsell Tips
The Pricing Game
Customer
Lifetime Value
How to
Run a One Day Sale
How
to Conduct a Product Launch
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Developer
101
Effective Upsells, Cross Sells and Bounceback Offers