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Upsell Tips
I have heard it said that you should "provide
the expected, upsell the rest". With software
products, you are often selling the difference
between the trial version and the licensed version.
Small companies, and MicroISVs in particular,
tend to sell themselves short. Providing additional
sales opportunities for the consumer during the
purchase process will help increase the value
of the sale, as well as the amount of profit earned
on the sale.
Earn money from extras using the "upsell" technique.
Think about the grocery store checkout line --
why is it loaded with candy and other small and
inexpensive items? Because when people have their
money out, they are ready to spend it. The same
is true during the online order process. Consider
adding small inexpensive add-ons that will entice
the consumer to make additional "impulse" purchases.
Find synergistic software applications, products,
or services that relate to the initial purchase
item. Offer the add-ons during the purchase process.
The easiest time to close an upsell is when their
credit card is out and ready to use. Upsells can
be additional software titles, or something completely
different. The more similar the upsell offer is
to the originally purchased product, the more
likely the customer will have an interest in adding
it to their order. Related product offerings invariably
result in a higher upsell conversion rate, meaning
more customers will take advantage of offers that
relate to the initial sale.
Kinds Of Upsells...
1. Discounting A Related Product
Offer the customer a related product, at a discounted
price, during the purchase process. Or, consider
sending a post-purchase email to new customers,
offering them discounts on related products. Be
sure to limit the time that the products are available
at the discounted price, as that will create a
"sense of urgency" and encourage the customer
to make an immediate purchase decision.
2. Discounted Product Upgrade
By separating your product line and offering
both Standard and Pro versions, you can often
target different audiences with the same product.
Additionally, many customers will spend the extra
money for a "Pro" version, assuming that it is
more robust. The perceived value of a "Pro" version
may ultimately increase the profitability of an
application.
3. Service Or Training
Provide online software training classes or fee-based
"Priority" customer service or tech support for
the product, and offer them as upsells during
the purchase process. These upsell options are
particularly suited to enterprise applications,
and can go along way to increase revenue.
4. Expansion Pack
Offer an "expansion pack" that enhances the software's
functionality or feature set. Customers will often
include an inexpensive expansion pack or graphic
collection on impulse.
5. Media
Be sure to offer a "backup media" option. While
electronic delivery is very common, many people
still want to receive a physical copy of the software
for safe keeping. Think of media as a way to make
more money on a sale. Some MicroISVs hesitate
to offer their products on discs because they
do not want to be burdened with fulfillment But
there are now a number of on-demand fulfillment
service providers that developers can outsource
to and eliminate those burdens and problems.
Upsells increase the amount of money made on
each sale. Consider how you can increase your
bottom line by offering additional items to your
customers.
Related Articles:
The Pricing Game
Shareware
Myths and Misconceptions
How
to Optimize for Organic Search Listings
How to Create
an Effective Upsell or Cross Sell
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Developer
101
Upsell Tips