In business, making a sale is the ultimate aim. That’s why we do business in the first place – to provide a product or service in exchange for some form of revenue.
Most entrepreneurs and business owners spend lots of time working to attract customers or clients. Without buyers, our businesses would not exist. It all boils down to the back-scratching exchange that benefits both parties.
While it is definitely important to get new customers in the door (or on the website) and make a sale, it’s just as important to get more business from the customers already hanging around.
What is an Upsell?
Think of a restaurant. Once customers are seated and ready to begin their meal, a sales transaction begins. The typical diner will spend an average amount during their stay. The restaurant owner certainly can congratulate herself on winning the customer’s business. It takes a lot of effort to get the customer to the table in the first place.
But the selling process does not end here. The restaurateur’s goal is to “upsell” the existing client. More expensive drinks? Side dishes? Entrée add-ons? Dessert? So on and so forth.
Virtually all business models can adopt the upsell approach to increase sales and keep marketing costs low. Here’s the basic formula behind this concept:
Revenue Earned Per Customer = $100
Marketing Costs Per Customer = $25
Once you gain the customer’s trust and respect, your upsell marketing costs drop significantly. Upselling may even lead to even greater revenue than generated during the initial sale.
How to Get Started – Ideas for Internet Entrepreneurs
For internet entrepreneurs, upselling is especially important. With millions of websites and products available online, retaining a customer’s business can make or break internet entrepreneurs. What follows is a range of options for getting repeat business on your website. These options are based on my experience in online business, but could apply to brick-and-mortar businesses as well.
- Keep your customer’s attention.
Even if you’re selling a great product, your customers want to know that you’re thinking of them. Newsletters, promotional announcements, product updates, holiday/birthday messages, etc. Customers want to feel important; they want to feel worthy of your attention. Try to make these attention-grabbing newsletters personal and warm.
For creating autoresponse messages and newsletter programs, I highly recommend AWeber. It’s never too late to get started with email updates and announcements. Just be sure you’re effectively collecting email addresses before or after the sale.
- Appeal to the big spender.
If you’re selling a product, you’ve likely priced the item to make the most profit from the greatest possible number of consumers. This is a logical strategy. But once the product is sold, many of your customers will still have more spending potential untapped by that initial sale.
Here’s an example from my own business. My home business startup ebook costs $24.95, including its accompanying bonus package. That book includes all of the essential information a new business owner could want for getting started and finding success. Many readers will be perfectly happy with that material alone. But for those who want to take their business to the next level, I offer business consultation for $100 per session. The product upgrade is intended for the business owner who sees the value in the upgrade. Their $100 investment might help create thousands of dollars more in revenue during the life of their business.
- Personalize an existing product.
Customers will pay an average price for a typical product or service. The marketplace has countless everyday products available at a range of prices. Entrepreneurs who want to upsell the customers ready to buy can easily do so by offering a personal touch.
- Offer smart upgrades.
Think of the last time you bought a new car. Just when you thought the decision-making process was finished, there you were: sitting in the finance office, listening reluctantly to a sales pitche designed to squeeze every last dollar out of your pocket.
In your own business, there are likely some upgrades you could add to the product sales page. These upgrade offers should be so related to the product itself that the customer feels compelled to buy.
Upselling should not be an underhanded business tactic. In the end, the upsell should benefit both the entrepreneur and the customer. Repeat customers are much happier returning to a familiar business than taking their chances in untested waters.
upsell | internet marketing | internet entrepreneur
642-901 is usually attempted right after 70-620. However, the eligibility criteria can also be fulfilled with 640-863.
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