Most businesses don’t make nearly as many sales as they could be making because they’re focusing on the wrong strategy. If you want to increase your sales by at least 30% in just a week or two, here’s a simple solution that’s fast and easy to implement.
There are two basic places where money changes hands between your customers and you…
The front-end where your customer makes a singular, initial purchase to enter your product funnel.
The back-end where your customer makes additional purchases, often at an increasing amount and frequency.
The front-end is necessary to convert prospects into paying customers, but the back-end is where the real money is made for your business. Getting new front-end customers is hard, time consuming and expensive.
But selling more products and services to your existing customers is virtually frictionless…
Plus your cost-per-lead and cost-per-sale is close to zero if you use this strategy while people are already making a purchase, or if they are on your email database.
This is a simple strategy that virtually every successful business employs in some form.
Watch this 60 second overview video before you continue:
First I’ll give you the strategy in a sentence and then explain it in more detail…
Present a secondary offer to increase the average amount of money your customers spend while they are warm to you.
Getting this right can be the difference between a rocket blast off and a bottle rocket fizzling out. Let’s get it right…
What is the main thing you are selling when someone visits your website or your business? That’s your primary offer in its base form.
For new prospects, this your “beginning” point.
It’s where you put your customer acquisition efforts.
- You generate and convert foot or online traffic.
- You give away lead magnets.
- You set up follow-up emails.
- You know the drill.
But remember this: It’s the beginning point.
The good news is, convincing people to spend more and buy more is MUCH easier once you get them to make that first purchase.
This up-selling or cross-selling of other products and services is a simple strategy that can completely change the dynamics of your business.
And it can happen TODAY!
If you look at McDonald’s, you can see a simple use of both of these…
UPSELL: “Would you like to Supersize your order?” (More of the same)
CROSS SELL: “Would you like fries with that?” (Related but different)
That said, I’m going to refer to everything we talk about in this training as an “up-sell” just for simplicity.
The core idea here is to increase the average amount of money your customers spend with you.
Stop for just a moment and complete a quick inventory for me. Write down everything you do to acquire a new customer for your primary product.
Take a sheet of paper out or type it into a note file on your computer.
Make a quick checklist of all that goes into obtaining a prospect and converting her into a paying customer.
You got it? There are a lot of steps involved, right?
The point I want to make is that it takes effort to acquire customers. There are numerous steps involved.
Now, after taking all of those steps…
Would you rather the customer spends a LITTLE money with you or a LOT of money with you?
This isn’t a trick question. At this point, you’ve done the hard work of getting a customer, so why not let him decide how much he wants to spend with you instead of limiting him to one small price point?
The steps are the same, but the money you make doesn’t have to be. What you want is to increase the average AMOUNT of money spent per transaction.
That’s what an “upsell” does for you.
It’s simple math… (and no this is not an income claim :-))
If you earn $27 per order, then every 100 orders will generate $2,700.
If you earn $37 per order, then every 100 orders will generate $3,700.
If you earn $97 per order, then every 100 orders will generate $9,700.
Which would you prefer?
$27 or $37 or $97?
Doing nothing differently in how you generate traffic or convert that traffic, you’ll earn significantly more by just increasing the average amount each customer spends on each order.
Now, there are a few options for WHERE and WHEN to include up-sells that I want to mention so you can increase your profit per transaction through up-sells.
OPTION 1: On your SALES page. Your first option is to include the option to upgrade on the sales page for your existing product.
You would simply add a reference to it near or inside an order box at the conclusion of your sales letter. The customer then either clicks on an order button for the regular product or the order button for the up-sell (which includes the regular product) at their discretion.
OPTION 2: On a SEPARATE page. The second option is to set this up on an “intermediate order page” or a “one time offer page” or whatever label you want to slap on it page.
The idea here is this: when someone clicks on the order link to order your existing product, they are taken to a page where the upsell is offered. They can either accept they offer and buy it as well or decline the offer and continue with their purchase of the regular product.
OPTION 3: At the checkout in your online store or during your sales presentation.
One way I’ve seen this executed with incredible results is to have counter and sales staff say something like this to every customer…
“Thanks for shopping with us, we really appreciate your business. Hey because you’ve already spent [the amount they just spent] with us today, you’re entitled to get [this cool thing that’s related to the main product] for [ number of dollars or %] off. This goes really well with [what they just purchased] because [give them a reason why it’s a good fit]. This special offer for [up-sell/cross-sell product] is only available today. Would you like me to add one to your order?”
This simple script, repeated on every transaction, could literally change your life 🙂
Be careful with how many up-sells you offer
There are people who offer too many up-sells during the order process, especially online, and I can tell you this is a major turn-off for most consumers.
It’s lovingly referred to by many frustrated customers as “up-sell hell”…
When you offer nine upsells, you are almost certainly going to lose the order, including the one for your “regular” product.
Yes, some people have that many upsells! NINE
I know that some well-known marketing experts say that “three” is a safe number – that is, you offer them an up-sell, and if they say “yes”, you offer them an even pricier option, and if they say “yes”, you offer them a final even pricier option.
However, you might want to start by offering ONE and seeing how it goes. Maybe you’ll be “leaving money on the table”. But you can test and measure your results and make changes from there.
One more thing. How do you implement this strategy if you only have one product or service?
Have somebody else supply your up-sells and cross-sells for you, while doing 95% of the work.
To learn how, make sure you read this post for all the details.
I’d love to see how you use up-sells and cross-sells in your business. Feel free to let me know in the comments below, or just drop me an email by using the Contact Form.
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About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group. Partnering with businesses from start to scale thru to sale.
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