Upselling is a strategy to sell a superior, more expensive version of a product or service that the customer already owns (or is buying). By a superior version, we mean a higher, better model of the product or the same product with value-add features that raises the perceived value of the offering.
Take this example; buy a TV from me, and Ill offer you a better one for 50 bucks more: the better TV is an upsell. Upselling is the lifeblood of many business models, and some companies are even willing to sell some items or services at a loss or low profit, banking on the hope of a future upsell.
The goal is compounding profit by using the momentum of purchase. My model in upselling is to earn 30% or more of the businesss profit from upsells. It makes pure business sense since upselling current customers is 5-10 times cheaper than acquiring new ones. Build upsells into your business from the beginning, and design your marketing approach around an upsell strategy.
Section 1: How Upselling Works
Upselling happens when you gain value from the customer through a simple exchange of value. A vendor can earn the customers business by providing a previously out-of-reach product and upselling existing products.
For example, some manufacturers offer cash rebates on rebates on products already in the customers home. You can even upsell the customer a new product in their home already (e.g., from their sofa to their bed), which will be far easier to move around.
The goal of a upsell is to provide a better and cheaper product or service while also getting the customer to consider a higher-priced one in the future.
Why upsells work
Upselling can create a sweet spot for your business. For instance, a copywriting agency that sends hundreds of fliers on LinkedIn will have to sell more than one flyer to get a few leads for their sales team. Yet, they might only be able to sell one or two flyers for the cost of printing them out. On the other hand, a nonprofit that organizes an extensive donation campaign would be more than double the number of contacts they made with their donation campaign without spending additional money to acquire more contacts.
Research has shown that upsells boost profitability, brand loyalty, customer satisfaction, customer retention, and lower acquisition costs.
This has led to the explosion of upsells for business. The number of upsells in eCommerce reached 17,000 in 2012.
What to consider when creating your upsell scripts
When a customer orders, its tempting to point out the upsell thats available. However, thats not a great sales tactic, especially for those customers who will never buy the upsell product.
Not only does that kill the potential upsell, but it also sucks energy from the customer, making them focus on the sale theyre interested in and will buy. The goal is to attract the most receptive customers to upselling and drive them towards the upsell of their choice.
How many upsell scripts are currently in place?
25-50
A good number is better than no upsell scripts. Theres a big difference between having a few upsell scripts and none at all. With those few, it doesnt matter what happens to your average sales conversion.
Upsell scripts that work
Below are five upsell scripts I use that can help you upsell products or services and reap profits.
1. Affiliate Upsell
A good affiliate upsell scripts is this simple one; instead of building a sales funnel full of prospective customers (for which you get only 10-20% conversion), you have to build a funnel full of self-registered affiliates (for whom you get 85-90% conversion).sales letters templates s a win-win situation for both the affiliate and the customer! Affiliates come to expect top-dollar for their efforts, and your business makes the cut-throat online business possible. It would be best if you started with affiliate marketing. You can quickly build your affiliate program with ClickBank and other popular affiliates such as KewlCat and BoostedBoards.
