The Fundamentals You Need to Create a High Converting Upsell
Marketers love this tactic because it works like magic. Upsells are accountable for thousands if not millions in revenue for businesses around the globe.
However, not every business successfully implements upsells that could bring them such results. What they lack is not technology or research but a lack of deeper understanding of their customers.
By the end of this article, you’ll uncover the basic psychology of why people buy and how to use this knowledge to your advantage to create a high converting upsell. It’s all about the basics. Master the basics, you’ll increase your profit by tenfold.
The secret to high converting upsells is in the psychology of your customers. It pays to understand your customers on a much deeper level. Once you know the underlying triggers of your customers, upsell will work for you instead of against you.
What is an upsell?
An upsell is an upgrade to what’s being offered to the customers at the moment of purchase.
If you’re familiar with marketing tactics or strategy, you should be familiar with this term we’re about to discuss. It’s implemented to increase the average order value of your customers. Since they’re already buying, why not recommend some more good stuff, right?
This strategy will not only increase your profit but also provide value to your customers. It’ll make them more likely to buy from you again in the future. A good upsell strategy kills two birds with one stone.
The reason why people buy
Let’s dive deeper into the psychology of why your customers decided to buy from you. It’s important, as a marketer, to know the exact reasons why your customers convert. Once you know why they convert, you can make better decisions in your marketing.
These are the two reasons behind their conversion.
1. They’ve finally decided to buy the thing you offered them.
2. They’ve concluded that only you can offer them the solution to their problems and not anyone else.
These two reasons are crucial to your upsell strategy. In fact, they are proportional. You may not see the connection yet but you will once you carry on to the next section.
Since you already know the psychology of conversion, it’s safe to conclude that a strong and unique selling proposition wins the game. This is the least your business needs to have because your customers make buying decisions based on your USP. Standing out from the crowd gives you a competitive edge over your competitors.
The ‘yes-or-no’ rule
When creating an upsell offer, use this rule — the ‘yes or no’ rule. It’s a rule I use for my offers. Your upsell offer should only be a yes-or-no option. It shouldn’t be a this-or-that option.
They have already decided to buy your offer and the upsell is only an upgrade. It’s either they want it or not. Giving them choices will end up in them not buying.
You want to avoid that. It’s good to have as many upsell conversions as possible but not at the expense of successful conversion.
Creating high converting upsells
The key to any high converting upsell is to add value to the existing purchase of your customers. This is where many marketers fall behind. Adding any offer of high value doesn’t necessarily compel the customers into buying them.
It needs to be relevant, high quality, and compelling. If the upsell doesn’t make any sense for your customers to buy, they won’t buy it. Before we carry on into these crucial elements, you need to make sure you got the right upsell offer.
Use a single-page offer
Why use a single page offer? It’s to deal with something we call the paradox of choice. The more choices your customers have, the harder it is for them to make a decision. Your customers will get confused and overwhelmed by the offers. Hence, single page offers are the highest converting.
I like to use a funnel page for any of my offers. It’s a sales tool that makes upsell easier without getting overly technical. Whether you’re an e-commerce or a SaaS business, you should use single page offers for your upsell.
This tactic should be able to secure you at least a 2% conversion rate. You may think that 2% is insignificant. Until you put it into practice, you won’t realize how effective a single page offer is on your conversion rate.
Urgency isn’t a tactic to sell. It’s a tactic to persuade your customers to buy now instead of saving it for later. This is why the tactic works so well for upsells. Urgency triggers action.
Your customers have clearly decided to buy your offer and land on your upsell page. The thing is they don’t know about the upsell offer and they probably don’t want it either. But if you combine the right offer with urgency, it’s going to be irresistible.
I would say urgency is the most effective tactic of all because it triggers action. No amount of marketing can beat an action trigger provided the offer is sold correctly.
Your customers have decided to buy your offer and not your competitors’. The next step would be the purchase. Your call-to-action is the guide to this transition. It should be clear, concise, and compelling.
The paradox of choices applies to your call-to-action as well. Too many of them will confuse your customers. Too little of them will make your customers bounce. The right amount will skyrocket your conversions through the roof.
When it comes to call-to-action, they should tell your customers what to do next such as buy now or sign up here. One tip for a strong call-to-action is to be clear and concise with your choice of words. Avoid being too creative or you’ll risk confusing your customers.
Smooth checkout experience
The checkout experience matters a lot more than you think. Most of the time your customers decided to buy the offer you promoted. The upsell is just an option. Your customers would want to buy the original offer as soon as possible.
The good experience of buying from your business will leave a mark in your customers’ minds. The next time they want to buy a similar product, they’ll buy it from you. They might even tell their friends and family about your business.
A good shopping experience converts better and makes your customers come back for more. Customer experience is important in maintaining a good brand image as well as increasing the lifetime value of your customers. In short, experience matters a lot.
Add fewer upsell
This is tricky. Marketers often give upsells which they think their customers would love to buy when in reality they don’t. The reason for this is the upsells aren’t what your customers are looking for when they made the buying decision.
This may sound contradictory but it’s true if you think carefully. Fewer upsell helps your customers decide faster on the spot instead of delaying the checkout process. Who knows they might go back to the homepage to do some research and ended up not buying your upsell because they didn’t find it anywhere on your website.
For me, I would rather them buy with no upsell added to the cart than having them leave the checkout incomplete. I can always follow up with offers in my email marketing. However, it all depends on your overall marketing strategy. As long as you’re not leaving money on the table, it’s fine.
While upsells can increase your cart value, it can also hurt your conversions if applied incorrectly. Always strive for balance when it comes to upsells. Your goal in the checkout section is to provide a smooth checkout process and make them come back for more. That’ll further increase your profit in the long term.