It’s All About the Offer: But Wait, There’s More
The key to successful upsells is selecting the right products and offering them in the most effective order. You want to look for products related to the main item promoted in the spot. For example, if you’re selling an exercise videotape, you could offer other tapes in the series or exercise aids, such as balance balls.
The order of the upsells is important, too. The first upsell needs to have the closest tie-in to the main product and should be the most expensive of the upsell items, says Hawthorne. Your take rate should start high on the first item—about 20 percent—and then taper off to anywhere between 5 percent and 15 percent on the following upsells. He adds that the average number of upsell pitches made per customer is between three and four.
Presenting so many add-on offers increases the length of time customers are on the phone with sales reps, say Perlstein, so you want to be careful not to turn a positive response into a negative one with upsell after upsell. He finds that a maximum of three upsells can be pitched without aggravating callers.
But not all upsells have to be products, states Perlstein. Another form of an offer upgrade is to convert a customer from installment billing to a single payment.
And the big kahuna of upgrade offers is to persuade a single-order customer to sign up for a continuity that delivers automatic shipments.
Make your offer sweet enough up front, and the back-end results could produce a continually replenished honey pot.