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Would You Like Cheese With That?

Copyright 2005 Donovan Baldwin
Back in my retail days, we called it "the upsell".

By Donovan Baldwin Category: 0

Submit your Articles Here!

Back in my retail days, we called it "the upsell". In
direct sales and internet marketing, it falls under the
heading of "follow-up", although in many guises it can be
very similar to the retail "upsell". It's really an
effective technique for increasing your income from almost
any marketing effort.

Most of us run into it in very common questions such as:

Do you want cheese on that? Would you like to supersize
your order? Would you like an apple pie with that?

The last one has the extra appeal of having another upsell
built in. If you agree to order an apple pie, they'll then
let you know that you can get two for only a dollar. How
many people across the world buy two apple pies when they
originally had no intention of even buying one?

Now, this seems a little sneaky to some people.

If you are simply trying to rake in some dough by shoving a
bunch of garbage on top of an order, I agree!

However, while you are making money, you can also be
improving the customer's buying experience, enhancing their
product, and improving your relationship with your customer.

Let's take a quick look at your benefits from the upsell or
follow-up.

Huge chunks of any businesses' advertising dollars goes
towards getting the customer to make that first purchase.
Overhead, such as electricity, wages, rent, and so on are
also part of the costs necessary to make that first sale.
Usually, the actual net profit on the sale in terms of a
percentage of the price of the product or service, can be
extremely low. Additionally, many buyers, particularly in
a direct or internet marketing context, can be very leery
at first of making more than the smallest of expenditures
with this new, unknown distributor.

However, once they are, if you will, in the door and
reaching for their wallets, anything you add to the order
can be almost pure profit. When they upsize your drink at
the fast food place for 39 cents, for example, the main
costs they really incur for that upsize is the cost of
syrup and carbonated water...which is next to nothing!

Okay, that sounds a little greedy, doesn't it?

Well, not if we are genuinely enhancing the customer's
buying experience or product by our upsell. We may have
expended a lot of time, effort, and expense to get that
customer to buy our internet marketing product, for
example. Suppose we also know that they will eventually
need or want another product (web design or web hosting
services, for example), and offer that to them as well?

If we offer it as part of the original sale, it may scare
them off, leaving us with no sale at all. Or, trying to
include it with the descriptions and specifications of the
first product may prove confusing to the customer and cause
us to lose the sale simply because they don't understand
what each is and does. Or, they may simply WANT the one
item! Offering the two together may cause us to lose the
sale, because they feel they are being sold something they
don't want.

How about this?

They make a purchase of the first item, and, as we take
them through the check out process, before they have
completed their purchase, we offer them the opportunity to
add the second item (which we know they will eventually
need) at a reduced price. We can probably offer the
reduced price, because we now have an active sale, and
there are really not as many additional costs associated
with the sale of the second item.

The value of doing the upsell at this time, rather than
earlier is that they now have a trust in you and your
product. If they have reached the point where they are
actually willing to make a purchase, they have crossed a
line or barrier which exists until a certain amount of
trust has been created.

>From a strictly technical point of view, the upsell often
works here for the same reason that "Do you want cheese
with that?" works at the fast food counter. The customer
has the cash or credit card in his or her hand and is in a
buying mood. At this point, they are more likely to "add
something on" to the purchase they have already decided to
make.

Additionally, most successful internet marketers (and
direct marketers as well) find that regular follow up with
customers often produces additional sales. Also, since the
customer has learned to trust your product and services,
the purchases sometimes are larger.

Once a condition of trust has been created between you and
a customer, you will find it possible to make future sales
to that customer with very little additional cost in terms
of advertising or overhead. That concept is easy. Just
look at successful Avon ladies, and the Book-of-the-Month
Club!

----------------------------------------------------
Retired from the Army, the author has worked as an
accountant, purchasing agent, optical lab manager,
restaurant manager, instructor and long-haul truck driver.
An active internet marketer since 2000, he now makes his
living online. Find more of his articles at
http://donovanbaldwin.blogspot.com

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Would You Like Cheese With That?

Copyright 2005 Donovan BaldwinBack in my retail days, we called it "the upsell".

Copyright 2005 Donovan Baldwin
Back in my retail days, we called it "the upsell".