Why Your Business Needs To Start Upselling
Knowing how to upsell your customers on complimentary products is a quick and easy way to generate more revenue from your business.
Why is this so powerful? It’s because “The probability of selling to a new prospect is 5-20%. The probability of selling to an existing customer is 60-70%” – Marketing Metrics Book
To add to this there’s no better time to pitch another product than when your customer is in the process of purchasing another product.
One of the most successful examples of this is McDonalds. When you come in to purchase a hamburger at McDonald’s, they’re really only making about .18 cents profit on that. Now when they upsell you on the fries and coke, their profit margin jumps to over a dollar.
So they draw you in to purchase one product; the hamburger, or sometimes it’s the McRib, and then they upsell you on complementary products or more of the same like with a ‘buy one get one’ offer.
Experienced marketers have known for years that the ‘money is in the backend’, which means that the bulk of your profit potential is not on the first sale but on all subsequent sales made after a customer is added to your email list.
Now go out there and put together an upsell offer!Tweet