Probably half of the products or services I`ve bought over the last year were through web-based sales funnels and you know what?
That number could, and should, have been a lot higher!
Upselling, downselling and cross selling have been core strategies of successful brick and mortar shops for decades, and online marketing has ramped it's use up to new levels.
One mistake I see time and time again is companies thinking that their sales funnel has to stop with a 1 time, take it or leave it sales opportunity.
By simply adding in a strategic sales process that includes upselling, downselling and cross-selling, any business, big or small, can drastically increase their customer satisfaction and profitability.
A sales funnel is the process a potential customers takes from first learning about your product or service until they decide to purchase and even after the sale. One of the clearest benefits of digital targeted marketing is the ease in which you can filter out people less likely to buy, and focus on those that are ready to purchase. It's like a casino kicking out the guy trying to bum free drinks while ushering the rich, clearly tipsy businessman to the high-end blackjack table.
To recap, a sales funnel is a series of steps that take a large group of potential customers and whittles them down to a much smaller number of educated folk that are ready to purchase.
What is an Upsell?
An upsell is an attempt to persuade the customer to spend more money. This is done by either offering clients more of your product or showing them a related product that fits their needs better and has a higher price. I promise that you have experienced this thousands of times in your non-digital life.
"Would you like fries with that?"
"Would you like a 2-year warranty with your new TV?"
"You know, this tie matches that shirt."
Upselling not only increases revenue, it’s to offer a better deal so that they spend more money. A big upsell may make more money per customer but smaller upsells (buy 2, get 1 free) will get more takers. Decide what works best for you.
They are already on a purchasing high, it’s the absolute best time to offer an even better deal.
What is a Downsell?
A downsell is when a potential customer resists purchasing so you offer a better deal. It could be the same item with added bonuses or a lesser item at a more affordable price.
Down-selling is also commonly used when your upsell is rejected. By properly selecting a down selling strategy, you can still add a lot of extra money to your company's bottom line.
"We also have last years model."
"We have some other apartments a bit further from the beach"
What is a Cross Sell?
Cross selling is offering related products or services that may be of interest. Visit any product page on Amazon to see an abundance of it.
"Buying a new pc? How about a new mouse and printer?"
"Sure we can cater your wedding party, would you like a band too?"
Upselling, Down-selling, and Cross Selling are vital components of ANY sales funnel both on and offline. A customer who has been upsold spends more money and builds a deeper relationship with your business because you provided the best product or service possible.
A downsold customer is now your customer! They may not have bought your highest priced item, but, there’s a far higher chance that they’ll come back and buy more in the future.
And what if they don’t buy anything?
Well, they have already visited your site and they know who you are, so you can retarget them through Google Adwords or Facebook. Your company doesn't have to stop advertising on a campaign by campaign basis. The longer you work at refining your audience the better your chances at mastering your sales funnel.
When your online sales funnel is working to perfection using strategic upselling, down-selling and cross-selling, you better hold on to your hat. That's when owning a business really starts to get fun!
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Steve is in charge of content creation for S9D Digital Marketing. His videos have been seen over 4 million times (organically) ad he prides himself on his ability to make engaging, user-based content.