6 More Tips for Maximising Your Profits From Upselling and Cross-Selling | by Nick James, The Internet Business Coach

Up-selling and cross-selling both work great to increase the average value of an order. You can make these strategies work even better by following these tips.

 

Tip 1: Offer a lot of value for a small additional fee. McDonald’s does this well, such as when they offer to super size an order for “just 39 cents more.” It’s a small additional charge (especially if you’re already paying $5), and yet it offers a lot of value to the customer.

Let’s suppose you’re selling a product for $100, and you offer a cross-sell or upsell for $50. That’s 50% of original price tag, and so it’s unlikely the customer will grab this upsell.

Instead, offer a cross-sell or upsell for a smaller fee, which will be psychologically easier for the customer to handle. For example, your cross-sell or upsell on a $100 item might be $10, $15 or even $25.

And this brings us to the next tip…

 

Tip 2: Test your cross-sells and up-sells. The only way to know for sure which up-sells and cross-sells will put the most money in your pocket is to test it. Test different products. Test add-on products versus offering packages. Test different price points. What may work for others may not necessarily work in your niche, so testing is the only way to discover the best strategies for you.

Here’s something you’ll want to test…

 

Tip 3: Combine strategies. Some marketers have found that customers are more likely to purchase a cross-sell if they’re presented with an assembled package option AND an add-on of an individual product. Test this for yourself by offering both options on your order form.

 

Tip 4: Guide customers to a specific option. If you put too many good options in front of your customers, they’ll hesitate. They may get overwhelmed and not buy anything. So a good way to overcome this is to make one of your options to be the “no brainer” obvious choice (which makes at least one or other options look like the bad options).

For example, let’s say you’re selling a weight-loss course for $50. The order form shows these two options:

  • Option 1: Add a low-calorie cookbook for an additional fee of $8.
  • Option 2: Add the low-calorie cookbook PLUS an exercise video PLUS access to a support forum for just $10.

Option 2 is obviously the better buy, so your customers are likely to flock to it.

 

Tip 5: Tell customers what the added charge is instead of the total price. You want your customer to focus on a smaller number, which is the add-on price. That’s psychologically easier to justify as opposed to having the customer focus on the bigger number, which is the total order price.

For example, let’s suppose you’re selling a $100 item with a $20 cross-sell option. Here’s the difference:

  • Correct: Focus on additional fee (small number): “Add a lifetime membership to the support forum for just $20 more.”
  • Incorrect: Focus on total price (big number): “Add a lifetime membership to the support forum. Your total cost is $120.”

See the difference?

Point is, you’ve already sold the customer on the main product, so don’t need to sell them on it again. Just focus on selling the additional product, and make this psychologically easier by telling them what the small additional fee is to add a lot of value to their order.

Last tip…

 

Tip 6: Make the process easy. This should be one smooth, automated process. For example, customers should only have to fill out an order form once, and they should be able to add something to the order with just a click of their mouse. Most major eCommerce platforms like 1ShoppingCart.com make it easy to offer up-sells and cross-sells.

Now let’s wrap things up…

 

Conclusion

There you have it – you just learned how to use cross-selling and up-selling to increase the amount of money your customers spend with you every time they place an order. No matter what you’re selling, there should be a way for you to add a product or service, create a related bundle and/or offer an upgrade to a premium version. So go ahead and get these options added to your order form today, because you could be making significantly more money on the next order that comes through!

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ABOUT THE AUTHOR

Internet entrepreneur Nick James has been at the forefront of Internet marketing and online product development since 2001. Nick is a full time product developer and has created several software programs, information products and membership websites during his entrepreneurial career.

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