Prioritize Your Upsell and Cross-sell Offers
When offering multiple upsell or cross-sell offers during inbound telemarketing calls, pay close attention to how you prioritize these offers. In general, the conversion rate will drop with each successive offer, so it makes sense to present your most expensive and, presumably, most profitable upsell or cross-sell offer first, then the next expensive offer and so on.
There are a few exceptions to this rule:
A continuity or auto-replenishment program should always be offered first because it invariably delivers more lifetime profits than any single upsell—even though the up-front revenue may not be the largest of your upsells.
Cross-sells that are closely aligned to a particular item should be offered immediately after the order for that item is placed. For example, if your customer orders a scarf and you have a matching set of gloves to cross-sell, offer the gloves immediately after the scarf order is placed. Don’t wait until the entire list of items being ordered is complete.
Pay attention to the conversion rate of individual upsell offers. If two upsells aren’t too far apart in price, it makes sense to offer the one with the consistently better conversion rate first—even if it’s the less expensive of the two. Your overall average order size and profit rates should be higher as a result.
Shari Altman is president of Altman Dedicated Direct, a direct marketing consultancy specializing in acquisition, continuity, DRTV and loyalty marketing. She can be reached at firstname.lastname@example.org or at (336) 969-9538.