Saturday, January 19, 2013 1:13 PMPosted By: Erik Stafford
I had lunch with my Father the other day, and while we were chatting, he went off the deep end with a rant about Upsells.
Turns out he was at a store recently... And when he checked out, the sales clerk tried to sell him some extra stuff. It happens all the time, right?
Probably more than you notice.
Of course, my father doesn't know that these “extra add-ons” are called Upsells. My dad isn't in the business of marketing, like we are.
He just knows they make him lose his temper.
And sure, my father is a little older, maybe a little grumpier...
But let's face it: Some people HATE additional offers.
In fact, I would guess most people do.
Because most businesses do them wrong.
In this post we'll be discussing the "Art of the Second Sale" and I'm going to share some of our tricks here at ISOOSI for making upsells, down-sells, and cross-sells work better, convert better, and annoy less people.
Before we do that though, we need to discuss exactly how these offers work, and how they're different.
According to Wikipedia, Upselling (sometimes 'up-selling') is a sales technique that “induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.”
Upselling usually involves marketing more profitable services or products, but upselling can also be simply exposing the customer to other options he or she may not have considered yet.
At Starbucks, when the cashier asks us if we want a “grande” latte instead of a “tall” latte, that's an upsell. When a McDonalds cashier asks us if we want to "Super-size" our existing order:
That's an upsell.
Cross-selling is a different technique all together, in which a seller tries to sell something else that's totally different from the originally requested purchase. At McDonald’s when the cashier asks if we want to "add a drink" to our order, that's a cross-sell.
Dominos Pizza's website shows an excellent example of a cross-sell.
Do you want an order of Wings with that?
You have to select either "Yes" or "No" to continue with your order.
Perhaps one of the most well-known cross-sells of all time is "Do you want fries with that?" which is standard practice at almost every fast food restaurant...
This offer proved itself so popular that it has spawned a host of others: "Would you like to add something from the bakery?" or "Do you need any stamps today?" and so on and so forth...
Almost every fast food restaurant chain now offers you a series of cross-sells...
In fact, for businesses like McDonalds, offering cross-sells and upsells is actually part of the new employee training process!
Effective cross-sells happen around you everyday and you never notice it, because when done well, cross-sells slide right under the radar. Think about your grocery store: It's no accident that the pasta noodles are right next to the pasta sauces.
Making a salad? What a coincidence... All the vegetables are right in one spot... And the salad dressing is right there too!
Cross-sells, when done correctly, work extremely well. They increase profits, and make customers feel like you've helped them by making things easy… Rather than feeling annoyed or angry by your persistent sales tactics.
Downselling is the act of offering a smaller, lower-cost version of a product or service to customers who have just turned down the higher cost version.
These "additional offers" have been standard practice in the brick-and-mortar business world for years...
Because they're incredibly effective.
Think about it:
When you buy seeds at Home Depot, a smart salesman will immediately offer to help you find gloves, hoses, and watering systems.
When you buy a suit, a smart salesman will immediately offer you help you find a tie :-)
In many cases, this tactic is so effective that companies will actually lose money on the first offer, because they know their upselling and cross-selling strategy will make them profitable!
A great example