What is Upsell Funnel and How to Create a Successful One?
It is costly to acquire new customers. It requires effort, time, and money. So, how can you get the most out of your money?
Today, we'll discuss a sales strategy that will assist you with this. It's known as upselling. We'll also go over three ways an upsell funnel may help you make more money.
What is Upsell?
Upselling is a sales strategy in which you offer a potential consumer an enhanced version of the product they've chosen to purchase. An upsell is a higher-priced variant of a product. When you ordered a meal at McDonald's, the cashier would inquire, "Would you like to supersize that?" That was a sales pitch.
What is an upsell funnel and how does It work?
A tiny sales funnel that ends with an upsell is known as an upsell funnel.
It appears as follows:
Lead magnet. In return for their email address, you provide the potential consumer with a lead magnet.
Premium product. You deliver a premium product to the potential consumer that solves the same problem as the lead magnet but adds additional value.
Upsell. When a potential consumer decides to purchase a premium product, you may offer them an upsell, which is an improved version of that product.
How do I make an upsell funnel?
1. Create a lead magnet
A lead magnet is anything you give away for free in return for the email address of a potential consumer.
It might be anything they can download to their smartphone or access over the internet. What matters is that your lead magnet solves an issue that your potential clients are having trouble with. That issue is either the same as or similar to the one that your premium product addresses.
People will not give you their contact information unless you provide them with something really useful in exchange. So make sure your lead magnet is valuable enough that you could sell it for money if you wanted to.
2. Come up with a product
Most likely, you already have a product. If you haven't begun selling online yet, you'll need to start with a premium product. It should ideally be a follow-up to the lead magnet, addressing the same problem but adding extra value.
3. Create an autoresponder sequence
After the potential consumer has downloaded the lead magnet, you must design a sequence of automated emails to send to them. The goal of these emails is to persuade potential customers to buy your premium product by sending them to its sales page.
4. Create an upsell
Of course, an upsell funnel isn't complete without an upsell, so you'll need to develop one:
Increase the amount. You may provide a potential consumer with more of the same goods at a lower cost.
More features should be added. You can provide a version of the same product with additional features to the potential buyer. The simplest method to accomplish this is to include a service (say, a one-on-one consulting call). You can, however, provide extra functionality.
Make a subscription offer. Is it something that people buy on a daily basis that you're selling? Then it makes sense to provide a subscription that is a better bargain than a one-time purchase.
5. Include an upsell in your sales funnel
With the UpsellYard, you can effortlessly add an upsell to your sales funnel. When someone decides to buy your goods, they will be presented with your upsell offer instantly. And we make it really simple for the client to say "Yes" — all they have to do is press a button. The one-click upsell is what it's called (OCU).
Why upsell?
The average order value can be increased with an upsell funnel (AOV)
The rise in average order value is the most visible effect of upselling on revenue (AOV). When you present a product to your potential clients, some of them are likely to purchase it.
When you provide a product to your potential clients and then follow up with an upsell, some of them will likely choose the upsell. Because the upsell is more expensive, it means you'll make more money than you would have otherwise.
A customer's lifetime value increases by using an upsell funnel (CLV)
The rise in client lifetime value is another revenue-generating outcome of upselling (CLV). When a consumer who would have purchased the original edition of the product instead purchases the upsell, their lifetime value increases. That is self-evident.
Commitment and consistency are one of Robert Cialdini's six persuasion principles. It comes down to the fact that we admire consistency in others and want to be perceived as such. This indicates that if someone says "Yes" to one offer, they are more likely to respond "Yes" to other offers in the future.
As a result, the impact of the upsell on the customer lifetime value isn't confined to the product in issue; it reverberates across the sales funnel. Over time, this may build up to a significant sum of money!
Brand loyalty can be boosted with an upsell
Keeping a current client is less expensive than acquiring a new one. That is why customer loyalty to a brand is so vital. The more someone invests in your brand, the more likely they are to remain loyal to it, thanks to the previously mentioned concept of commitment and consistency.
Upselling is a fantastic approach to do this. It doesn't seem like paying a little extra for a better version of the product is a huge problem... This increase in investment, however, has a psychological impact.
Customers that have purchased the upsell are more likely to:
Stick with your brand.
On social media, they may share their pleasant experience.
On an online forum, leave a nice review about your firm.
Some of these factors are nearly impossible to quantify, but they are nonetheless significant. They can also have a significant influence on your bottom line!
Upsell & cross-sell your customers by offering extra products, related products, and automatic free gifts through a one-click, tactful upsell popup.