The Power of Upsell
Hope everyone is doing well. Welcome to the next round of the Sunan Weekly Roundup!
What we are working on:
First, this week, we released another intriguing blog titled, 3 Ways COVID-19 Has Changed Social Advertisement.
Since the Covid-19 pandemic hit, the world is just not the same place it used to be. With more and more people spending a lot more time online, social media has become even more important than before.
Personally, I think number 1 is something many marketers overlook. Check out the article here and learn what is the new recommended time to post on social media.
Secondly, we have an awesome surprise that we will be unveiling this Wednesday. I’m so excited about this one. We have been working on this for the past 3 months. This is going to change Sunan forever. More on that in the next few days…stay tuned!
My biggest takeaway this week: The Power of Upsell
Did you know that when you goto McDonald’s, they spend about $1.91 in advertising to get customers into the drive-thru? That means that when they sell you a burger for $2.09, they only make $0.18 per order.
But here is where the magic happens. After you order your burger, they have their cashiers ask this magic question: “Would you like to add fries and a Coke with that?” I’m sure you recognize that phrase well! They charge $1.77 more for this upsell, but get this, they make $1.32 profit from everyone who takes this upsell. That’s 8X the profit of the initial sale!
As marketers and entrepreneurs, we have to shift our perspective from just making the initial sale to analyzing what additional value could we add for the customer via upsells?
For example, imagine you are selling an 8-week full body workout video series where you work with clients in transforming their physique, energy, and lifestyle. Your goal is to get them in the best shape they have ever been.
You are selling this awesome course for a one-time fee of just $49. But wouldn’t it be awesome if we could deliver more value to the customers and in return make more money?
This is where the upsell comes in! We have to ask ourselves what additional value can we provide as an upsell? What more can you provide that would move the needle for your customer in their overall health and wellbeing?
Here is my take to the upsell. Once someone is ready to checkout on the core offer, I would offer them the following upgrade:
- Get access to a special 8-week nutrition guide with detailed recipes to maximize your results while on this amazing journey
- We will ship all the workout gear directly to you so that you don’t have to scramble around ordering all equipment needed.
- Get 5 bonus core workout videos (180 mins) to get the core that you have always dreamt of.
Weekly checkins by a certified coach to ensure you are getting the best results.
- Now typically, we sell this package for $249 but if you purchase now, you can get access to this awesome offer for just $147.
See, it’s that simple!
Now let’s say 1 out of every 3 people that see this upsell end up purchasing it. That brings your average revenue from $49 to $98! That is a 100% increase in your average revenue just by making this minor tweak!
Now here are 3 simple steps you need to take into account when creating your upsell:
- Add Value – Ensuring you are adding relevant value to your customer in their journey with you. If you are offering your customer things they don’t want or need then you will only alienate them and negatively impact your relationship with them.
- Add Discount – Placing a discount on your upsell will provide a greater incentive to your customer and increase the chance of purchasing the upsell.
- Add Scarcity – Add an element of scarcity to your upsell. Make it a one time offer which they cannot purchase at this discounted price afterwards.
Now it’s your turn: What additional value can you offer to your customers via an upsell that will help move the needle for them in their journey with you. Always remember, an upsell can be a game changer in drastically increasing your bottom line by just making a few minor tweaks.
Time to level up!
– Sajjad Husain, Founder & CEO