Completely Free No Strings Attached Fill In The Blanks Professional Sales Letter Template
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 same product with value-add features that raises the perceived value of the offering.
Take this example; buy a TV from me and I’ll offer you a better one for 50 bucks more: the better TV is an upsell. Upselling is the lifeblood of many business models. 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 business’s profit from upsells. Since upselling current customers is 5-10 times cheaper than acquiring new ones, it makes pure business sense. Build upsells into your business from the very beginning, and design your marketing approach around an upsell strategy.
Relevance is the key to successful upselling. A customer becomes a customer by buying one product. Make sure that you either augment or improve that product with your upsell. The most successful and complaint-free upsells are those in which the customer realizes his or her own need and makes a willing purchase.
Why Is Upselling Important for your business?
Upselling is not a dirty tactic if you put it into perspective. If it focuses on helping your customers ‘win’ by suggesting premiums, upgrades or add-ons that will eventually deliver more value and make them feel like they got the better deal, it will turn out to be a customer happiness tactic that also generates additional revenues.
Lead generation is an expensive practice. It is much easier and cheaper to optimize the sale to a customer who already trusts you and has bought something from you in the past or is about to make a purchase now than to sell to a new prospect who has never heard of your brand. As we mentioned before you have a 60-70% chance of selling to an existing customer and only a 5-20% chance of selling to a stranger. It’s an easy win for a lot of eCommerce businesses on a mission to accelerate their growth and improve the bottom line.
Customer Lifetime Value is the net profit contribution a customer makes to your company over time. You can split your customers into three main categories: not profitable, profitable and very profitable. Higher CLV means each customer generates more revenue for your business without you having to invest anything extra, which also means your company has more money to spend on acquiring new customers. Upselling is one of the most effective ways to turn shoppers into very profitable customers and keep them coming back.
Upselling is unique in the way it adds value to customers that makes them want to come back for more. By creating an easy way to make life straightforward for customers you are ensuring that they will return in the future if they need more of what you are selling. Be sure to offer great customer service along with your upselling efforts to guarantee happy customers no matter what happens.
Completely Free No Strings Attached Fill In The Blanks Professional Sales Letter