Regardless of the type of company you’re running and the types of products and services you’re selling, there’s one goal that you most definitely have. Increasing sales. Boosting sales is a sure path toward becoming more successful, but it isn’t always clear what to do so as to maximize those and ensure you’re getting the perfect results. Some strategies you can use are explained on this website.
When using certain strategies to acquire customers, and you have to be doing that, because nobody will find you on their own if you don’t put some effort into it, then the thing you need to think about is increasing sales through maximizing your return on such investments. In different words, you want the strategies you invest in to provide you with a great ROI, and figuring out the best way to do that could be pretty difficult. Learning about particular concepts that are to be used as ROI maximization strategies will be of help, though.
Upselling is, naturally, one of those concepts. Understanding what it is and whether you actually need to create an upselling funnel or not, as well as how to create one should you decide to do it, will definitely lead you to figure out how this strategy works and whether it can be helpful for your specific goals. The strategy could be crucial for your ROI maximization, so missing out on it might not be the best move. Thus, if ready to learn what it is and more, read on.
What Is Upselling?
Upselling is practically when you offer a client an upgraded version, and a higher-priced one of course, of the product they’ve already decided to buy. This sales technique is used by marketers everywhere, aimed at getting the customer to buy a more expensive variant of the product they’ve initially decided to go for. Apart from increasing your sales and your revenue, it also encourages customers to invest wisely in the products they’re purchasing, while also increasing customer lifetime value (CLV).
Encouraging customers to buy premium-priced products instead of sticking to their earlier choice is a tactic used by practically every business nowadays, meaning you should add it to your overall strategy as well. Techniques such as complimentary discounts, relevant pricing, and similar ones increase the actual sales price and thus lead to you earning higher revenue and increasing your profit margin. While it may not always be the best move, as it could cause some dissatisfaction among customers who won’t like being influenced into buying a more expensive product, if well-executed, it can certainly bring great results to the table.
Do You Need An Upselling Funnel?
A type of mini sales funnel that ends in an upsell is known as, well, an upsell funnel. It consists of a lead magnet that you provide your customers with in return for their e-mail address, a premium product that solves the same issue as the lead magnet but offers additional value, and an upsell, which is essentially the improved version of the initial product you’ve offered. Understanding what it is, though, is probably not enough for you to understand whether you need one or now. So, let me tell you more about its benefits.
First off, an upsell funnel will increase the average order value (AOV), and I suppose it’s clear how. Offering your potential customers a certain product and then following up with an upsell will result in a higher overall price, provided that they go for the latter offer. Thus, you’ll get additional revenue that you wouldn’t have generated otherwise, i.e. that you wouldn’t have earned if you decided to stick with the initial product offer and not offer an upsell. Increasing the AOV can certainly have a huge impact on the revenue in the long run.
Increasing the customer lifetime value (CLV), as I’ve mentioned before already, is another benefit you can expect to get from this type of funnel. When a customer is ready to accept your first offer, and then your upsell offer as well, their lifetime value becomes higher and, of course, they are more likely to say yes to your future offers too. Thus, the effect isn’t actually limited to the specific product in the specific offer, meaning those people are far more likely to buy from you again. As Clickfunnels and similar great sources will explain, the upsell will ripple through your whole sales funnel, thus definitely having a greatly positive impact on the CLV.
The more people invest in something, the more they value it, which is great news for every company offering upsells. As the purchase will be more important for people, they are highly likely not only to share their experiences with other people but also become quite loyal to your brand and even defend it in front of other individuals in the future. Increasing brand loyalty is, naturally, one of the main goals that every company has, and yours is not excluded.
How To Create It?
Realizing how significant an upsell funnel can be for you will lead you to want to create one right away. Not knowing how to create it, though, could get you discouraged rather quickly. Well, there’s no need for that, as everything can be learned, and so can this.
Creating an upsell funnel starts, of course, with a lead magnet. Giving away something for free is more likely to get customers interested into the next part of the funnel, i.e. the actual product you’ve created and that you’ll pitch to them. Creating an upsell (additional info), for example, by offering more of the same product for a better price or by offering more features, is the next step.
Using software solutions to add the upsell to your sales funnel will make this process even easier. Finding the right software piece, however, is a must, so make sure to choose wisely in this stage. Going for one that offers great value and simplifies the process completely is the right thing, because the easier it is, the more likely you are to use it the right way.
Read Also:
- Close More Deals With The Meddic Sales Process
- 6 Most Effective Ways To Increase Sales Volume Fast In 2021
- The Easiest Way To Reach Your Target Audience On Social Media
The post What Is Upselling, Should You Create A Funnel For It & How To Do It appeared first on Social Media Magazine.
