Satisfy Your Customers' Needs with Upselling

The Early Checkout

The Ecom Growth Newsletter #58

“Would you like fries with that?” - every Mcdonald's employee ever. This is one of the most famous upsells in history. But why does it work, and more importantly, why do you need more upsells in your business? It works because it makes sense. I’m sure 80% or more of Mcdonald's customers say “Yes” and are happy to fork over the difference for those salty fries.

The reason you need more upsells in your business is simple… So you can outspend the competition on advertising to acquire the lion's share of customers.

The business that can afford to spend the most to acquire a customer wins. Especially when it comes to front-end sales. If you are just relying on them to drive profit. You are playing the wrong game.

This week we have a returning expert contributor Mike Hoyles, who is giving us the lay of the land when it comes to upselling and why you need more in your business!

Let’s get into it…

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Upsell

An upsell is a sales tactic in which a business tries to sell a higher-priced product or service to a customer who has already shown an interest in a lower-priced product or service.

How to add an Upsell to your store (Click Here)

Source Link: (Click Here)

How to Leverage Effective Upselling to Improve your Average Order Value

Upselling is one of the most valuable assets to any business.

It is the art of upgrading the final purchase slightly at high margins.

Car dealerships are famous for this:

• Protective spray for leather seats

• Undercoating the vehicle for safeguarding against weather conditions

• Upgrading from carpet to rubber floor mats

When you’ve already committed to purchasing a $50,000 vehicle, adding $500 more is only 1%. Amortized over a 60-month agreement, the end user would see an increase of only a few dollars per month. (But the dealership just sold $30 leather spray and $70 in labour costs for $500.)

Effective upselling should be timely and effortless. It should be done after the customer has committed to a much larger purchase. The hard part of the sales conversation is done. You've established the necessary rapport, presented the value and asked for the sale. Upselling can even be presented in a "by the way" and even assumptive manner tactfully.

Amazon bundles the “people who have purchased that, also purchase these” and add the presumptive 3-pack product list at the bottom of the product page to increase AOV (average order value). Some eCommerce stores add in volume tactics for the exact same product. “$20 for one, but if you buy 3, it’s $45.” These work great for consumable products.

The best part of an upsell is it's a ratio game. It doesn't matter if it's $500 leather protection on a $50,000 car or McDonald's famous "Would you like cheese on that?" for an extra $1 on a $10 combo. The idea is it's a fraction of the total investment they are already committed to, but the upsell itself is high-profit margin. Do you think that single slice of cheese costs McDonald's $1? No. It costs them pennies per slice because they buy them in boxes of a thousand at a time.

The 3 biggest mistakes in upselling are:

1 - No attempt was made for the upsell

2 - The salesperson comes across as pushy

3 - The upsell was unconvincing or not in the customer's best interest, so they said no.

Tactful assumption focuses on the customer's needs, not yours. Timing & placement is important.

If you push too hard on the product page and it underperforms, try adding your upsell to the shopping cart itself. Customers only reach the cart after the product is added, and they want to calculate the final price, including tax, shipping, etc.

Here, you can help them justify the fixed shipping costs by adding one or two more products with a single click. Effortlessly add an upsell script like JustUno to your shopping cart to leverage this strategy.

I’ve run 7-figure upsell campaigns for international airlines, hotels and retailers. I can help you.

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Create custom rules and A/B tests for continuous improvement, and get top-notch support from dedicated engineers. Don't miss out on this opportunity to take your store to the next level. Choose Crossing Minds today!

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The Early Checkout Team

Today's Issue was written by: Zachary J. Radford

Today's expert contributor: Mike Hoyles

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P.S. Happy Holidays To You And Yours! ♥

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