The Do’s and Don’ts of Relationship Marketing

Source: https://postfunnel.com/the-dos-and-donts-of-relationship-marketing/

Relationship marketing is the technique of cultivating deep, long-term relationships with engaged customers. It’s all about ensuring their satisfaction and continued interaction with your brand or service over time. Achieving this requires a long-haul strategy that emphasizes customer experience and lifetime value over any individual transaction. In other words, relationship marketing and personal relationships require that same crucial ingredient: hard work. Maintaining connections with valuable customers requires constant attention, and if tiny mistakes accumulate without being addressed, the relationship will falter. Here are some important tips for what you should do — and avoid — to better support existing customers.

More from PostFunnel on relationship marketing:
How Simplicity Affect Customers’ Relationship with Brands
5 First-Rate Email Tips to Deepen The Relationship With Your Customers
Why has Online Shopping Become so Unpleasant? CRM Pros, You’re Missing the Target

DO: Generate and provide social proof

Social proof is a strong marketing force with direct impact on sales. 82% of Americans claim they look for endorsements from friends and family before making a purchase, and 91% of 18 to 34-year-olds trust online reviews as much as personal recommendations. You can encourage the social proof effect using referral programs that push customers and influencers toward becoming your brand ambassadors.

DON’T: Let a relationship go cold

Common wisdom says that it’s harder to start fires from scratch than to use warm coals. That’s true in relationships as well. For customers to come back to your business, they should see value in an ongoing relationship and remember positive experiences from past engagements. Keep refreshing their memories of strong customer service experiences with regular contact through available channels. Otherwise, the curve of forgetting may kick in as customers start to forget the quality of their experience.

Customer marketing challenges and opportunities

DO: Associate your brand with a customer need

Savvy marketers are always seeking ways to keep their brand in the customer’s thoughts. More specifically, when a customer needs a product you provide, they should immediately think of your company. Maintain an active presence through:

  • Social media announcements
  • Content marketing
  • One-on-one relationship management

DON’T: Become just another repetitive contact

Sending an email every 90 days without fail doesn’t mean you care about a customer relationship — it just means you know how to set calendar reminders. A better approach is to check in on contacts and nurture relationships in varied and interesting ways. Have you developed an interesting content piece that customers might be interested in? Send a link! Has your contact found a new job or started a business initiative? Send an email congratulating them. If your brand emphasizes in-person engagement, ask to meet for coffee or lunch if you notice they’re in your city from far away. These approaches can help you stand out and personalize communications in ways customers will remember.

DO: Value small talk

Relationship management is about human touches, even if within a professional context. There’s always value in going beyond rote greetings with a simple “How’s your business coming along” or “How’s your family?” Contradictory though it may seem, a customer who knows you’re invested in more than their sale is more likely to give you their business.

One technique which can assist you here is to share mutual needs. Feel free to discuss your own business needs and ask about theirs. You never know when this relationship might bring in new networking opportunities, or when you can build customer trust with a valuable recommendation.

DON’T: Prioritize short-term gain

Relationship marketing is a long game, so don’t get distracted by short-term gains. Prioritizing a long-term relationship might involve reinvesting in marketing expenses or customizing deals, but the rewards can benefit your brand and the customer alike. A mere 5% increase in customer retention can equal up to 95% increase in profit. Sustainable rewards like that are worth taking a little extra time and avoiding risky shortcuts.

DO: Proactively seek out feedback

Soliciting feedback on a product is better than waiting for answers. If you know that problems exist within 24 to 48 hours of a sale, it’s easier to address the issue and figure out how to avoid it in the future. As customers won’t necessarily deliver these insights unprompted—especially if they’re disappointed with a product or service—use surveys, phone calls, or even check-in emails to see how they’re managing with your product.

DON’T: Treat your customers as disposable

The most reliable relationships are built on trust. If you’ve completed a sale, follow up with check-ins to make sure your customers are satisfied and whether they need any additional tools. Prioritizing long-term relationships is partly about showing clients that you’re still accessible after a deal goes through, especially if you’re offering a service.

DO: Be authentic

Customers can usually tell when your marketing efforts are honest and transparent, but overselling yourself creates barriers to meaningful relationships. Studies have consistently shown that consumers prefer to make purchases from authentic brands. 86% of people say authenticity matters when they’re deciding whether or not to support a brand.

Being authentic can take different forms for different industries. For a company like Apple, it’s about staying true to their uncompromising vision of tech and design. For McDonald’s, it’s about never going off-message about fast, affordable food. For other industries, it might be more about charity dollars spent, or steps taken to mitigate environmental impacts. Above all, transparent communications can go a lot further with your customers than concocting brand narratives that are at odds with the reality of your product or service.

The post The Do’s and Don’ts of Relationship Marketing appeared first on Post Funnel.

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7 Questions to Ask When Hiring a PR Firm

Source: https://postfunnel.com/7-questions-to-ask-when-hiring-a-pr-firm/

It’s simple:

Good publicity and earned media lead to increased exposure and a growing reputation for your brand. This piques your target audience’s attention and allows you to quickly gain their trust. In turn, you can forge a mutually beneficial relationship, where customers continue to support your business as long as you continue providing value.

Of course, generating such publicity is no easy feat. And neither is maintaining or improving your brand’s reputation once you’ve become well-known in your industry. For growing businesses with smaller teams and tighter budgets, creating a dedicated internal PR department is likely out of the question.

While it’s not impossible to adopt a do-it-yourself approach to public relations, it’s fairly easy for such initiatives to go off the rails. With so much else going on, the added responsibility of creating consistent public relations initiatives can spread your team too thin.

Your third option is hiring an established PR firm to help manage your brand’s growing reputation. In hiring an outside firm, a team of experienced and dedicated people will help you navigate all things related to public relations and public image.

Finding the PR firm that’s right for your business isn’t a decision that should be taken lightly. Before you commit to a specific firm, you need to answer the following questions.

What are you hoping to accomplish for your brand?

Above all else, you should have a solid reason for focusing on PR. Whether you’re aiming to generate brand awareness, improve your reputation, or spur sales (or all three), it’s important to set SMART goals for your PR initiatives right from the start. This will help you focus on finding the firm whose services most align with your specific needs.

You should also tie PR-related KPIs to your overarching business goals. While a general assumption is that good publicity will lead to business growth, it’s vital to know this growth will be achieved. By defining your PR- and business-related goals in specific and measurable terms, you’ll better assess which PR firm is best for business.

Do you have the capacity to work with a PR firm?

Even the smallest PR firms typically charge clients anywhere from $250-300 an hour. Depending on your business’s financial situation, this additional cost may eat into too big a portion of your overall marketing budget.

It’s worth noting that it generally takes more than a single month to gain traction from your PR initiatives. You’ll typically need to commit to a long-term contract—accruing additional expenses along the way.

The other area of concern in terms of capacity is your organization’s ability to effectively collaborate with your PR firm. While the firm will take on most of your PR-related duties, they’ll still rely on your team to deliver pertinent data and information, develop and improve content, and maintain overall alignment between both parties.

Ask yourself two questions here:

  • Does my business have the capital to retain the PR firm that will allow us to reach our business goals?
  • Do we have the manpower and resources to empower the PR firm to perform to their highest potential?

If you’re not yet prepared to work with the PR firm that’s best for your business, take the DIY approach or wait until you can build up your resources.

Is your organization ready for additional publicity?

Every business owner dreams of getting picked up by the right influencer or publication. In these dreams, the success that follows is basically effortless. After your brand goes viral, you just have to put your business on cruise control and ride out the wave, right? Nope.

If the value you provide your customers doesn’t match (or exceed) the bar set by your PR initiatives, it can do more harm than good to your brand’s overall reputation. Secondly, you need to be prepared for the potential influx of business once your PR initiatives are live. Failure to keep up with increased demand will likewise damage your reputation.

Finally, you need a game plan for “what’s next” once PR initiatives are in full swing. This goes for all areas of your operation, from providing additional value to your customers to expanding your PR- and marketing-related initiatives.

The purpose of asking these questions is to understand what needs to be done to maximize the value you get from the PR firm’s efforts.

 

Multi Channel Marketing E-book

How does the firm measure and define success?

You don’t want a firm that either a) promises to nail your sought-after results no matter what, or b) promises to nail what they consider to be successful results.

Rather, choose a firm that:

  • Takes your marketing and business goals into consideration above all else
  • While considering your goals, uses their experience and expertise to formulate a plan

It’s not just that your PR firm’s goals should match your own. It’s that your firm should understand your current and future goals and get laser-focused on helping you reach them.

How do the firm’s services align with your needs?

Though broadly-defined, you need to know what you’ll receive in return for those costly retainer fees. The last thing you want to hear from the PR firm is “we can offer those services, but it’ll cost you extra.”

Consider how the firm will meet your organization’s more “intangible” needs as well:

  • Will you have a steady contact person throughout your relationship with the firm? Or will your account be moved from agent to agent?
  • Does the firm provide various options and opportunities for you to engage with their team? Or are communication and collaboration more rigidly set?
  • Do you have the option of amending your agreement with the firm over time? Or are their contract terms too rigid to account for your fluctuating future needs?

Your PR firm should allow for scalability in terms of the services it provides. Often, firms will offer tiered services for businesses at various growth stages—ideal for companies looking for a firm to work with over a sustained period of time.

What experience does the firm have with brands in your niche?

Your PR firm should also be able to demonstrate knowledge of your niche. Look for companies that specialize in helping brands in your industry. Dig into any content they offer that can give you a better idea of their relevant experience.

Look into any social proof revolving around potential PR firms. From additional on-site content (such as case studies and client reviews) to third-party mentions of the firm (via social media, forums, etc.), you should be able to get an idea of how they’ve treated your peers.

While any PR firm worth its salt should be able to assimilate into any niche, it’s best to find one that has extensive experience in your industry.

What does the firm’s process look like?

Your chosen PR firm should be just as focused on their processes as they are on obtaining results. Moreover, the firm should be transparent and comprehensive when:

  • Explaining what the team will be doing and why it will be beneficial for your business
  • Communicating what the firm will need from your team in order to succeed
  • Providing a timeline for rollout of future initiatives and setting expectations regarding the results

It’s vital for your team and your PR firm to stay on the same page at all times. In turn, you’ll both be able to quickly capitalize on any opportunity that comes your way—ultimately leading to major growth for your business.

The post 7 Questions to Ask When Hiring a PR Firm appeared first on Post Funnel.

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NEWS // New Representation: Tea & Water Pictures

Source: http://focus52.blogspot.com/2018/06/news-new-representation-tea-water.html

I’m pleased to announce that I am now represented by Tea & Water Pictures in New York, London and Beijing. They are an exciting agency that have a some great production experience and a team with really diverse but complimentary backgrounds, so I’m excited to see what we can achieve together over the next few years!

They’ve also done a little interview with me which, if you’re interested, you can read here 

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11 Perfectly Written Subject Lines

Source: https://postfunnel.com/11-perfectly-written-subject-lines/

Seldom are first impressions more important than your email subject line. 47% of email recipients open emails based on that line alone. And 69% of recipients report email as spam based solely on the subject line. There’s not much room for error when it comes to writing catchy, informative, and personalized copy to engage your subscribers.

Check out these examples of killer subject lines to use in your email marketing, and learn what makes subscribers want to click them.

More from PostFunnel and Optimove on email marketing:

1. Free Delivery for Kickoff 🏈

This one from Postmates hit several high notes — the emoji serving as the most eye-catching. When used correctly, emojis work wonders in attracting customers’ attention: 56% of brands that used an emoji in their subject lines had a higher open rate than those that didn’t. Only 9% of subject lines, however, contain emojis. When used smartly (and sparingly), emojis make for a fun and appealing surprise.

Now for the copy:

Using ‘free’ in the subject line is important; it leads to 10% more opens. And finally, Postmates sent the email on Saturday afternoon, looking to catch the attention of hungry sports fans busy watching the game.

2. I was right – and that’s not good for you

With an open rate of 69%, this subject line from Sumo was their highest-performing one. This approach intrigued customers—even if there wasn’t any context in the subject line—and prompted them to click the email. Their open rate is much higher than average, with a successful open rate being between 15-25% for most industries.

3. Hey [First Name]! Which one of these would be your favorite read?

When you combine both curiosity and personalization, you may just get a 50% open rate like EmailMonks did with this subject line. It enables readers to feel involved with the selection process, pushing them to engage with the campaign.

4 Since we can’t all win the lottery…

Stand out from the other emails promoting their prices, discounts, and deals — and show customers you know how to keep it lighthearted and real. This subject line from Uber is fun winks at the recipient through the message “until you can get a private driver, Uber is here for you.”

5 Let’s meet for Happy Hour

Why not kick off a conversation with your customers, starting with the email subject line? Instead of using the line to highlight the Happy Hour deal, Starbucks writes to its subscribers as they would a friend — using a fun outing to lure them into stores and check out their new drinks.

6 SUMMER TANK SALE! 30% off ALL tanks until Sunday!

Combine urgency, discounts, and all-caps, and you know you’ve got a winner. Project 615 really works the FOMO, showing subscribers they need to act now to get in on this deal. As with emojis, you don’t want to use this approach on every email campaign. But it can help your subject line stand out from the dozens of others received by consumers each day.

7 Hey. HEY. Don’t forget: Super Cash ends tomorrow!

Want a subject line sure to catch their attention? Old Navy is driving their message home with this clever example. You know it’s a good subject line when you read it and it sounds like someone is actually saying it.

Another point that stands out here is the absence of exclamation marks alongside the two “heys” at the beginning — because seeing an exclamation mark early on can raise red flag spam alerts for consumers, shutting them down immediately. Plus, subject lines with six to ten words have the highest open rate, accounting for 21%.

8 A Special Offer for Existing Jumpanzee Clients

Everyone wants to feel special, so any chance you have to do that for your subscribers is a win: like this subject line from Jumpanzee. They had a 50% open rate and converted 30% in sales with this campaign. The company personalized the subject line without using the customer’s name, creating the effect of group exclusivity.

9 *Don’t Open This Email*

Being told not to do something makes you want to do it that much more — that’s not just us, right? REBEL8 plays up the curiosity element with this subject line, a tactic often trotted out by other brands, too. Just make sure to back it up with something worth their time in the email body.

10 ¿ןɐǝᗡ pooƃ ʎןǝƃuɐɹʇS ∀ ɹoℲ ʎpɐǝᴚ

This subject line from Firehouse isn’t something you see every day, but it definitely caught subscribers’ attention. The campaign had a “Stranger Things” theme and played off of “The Upside Down” featured in the show. Firehouse sent the email the day before the show was released, showing they know how to go full out for a theme.

11 Your Weekly Writing Stats + 50% Off Any Premium Plan Continues

Consumers like to see how they’re performing and how they stack up against their peers, and Grammarly taps into those desires with this email. Not only that, but they also tack on a discount to make the offer even sweeter.

Try them all

There are dozens of types of email subject lines to test out with your customers, including ones focused on offers, news, personalization, humor, emotions and current events. Keep your audience guessing by trying out a variety of approaches so your messages don’t become stagnant in their inboxes.

The post 11 Perfectly Written Subject Lines appeared first on Post Funnel.

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7 Techniques for Mastering the Upsell & Boosting Customer Buy-In

Source: https://www.autogrow.co/7-techniques-for-upselling/

Have you ever played Starcraft? And what about Civilization? Or any other computer strategy game for that matter? 

In these kinds of games, you basically control the growth and evolution of a society. 

In order to grow, you need to mine and collect resources. Lumber, ore, food, stones—you know, the building blocks of any great civilization. 

And like so many other games, the end goal is usually to dominate the other societies on the map. 

Now, a lot of people make the mistake of focusing all their efforts on boosting military power first thing. But the truth is, upgrading your ability to mine resources better is the key to success. Because when you focus on that, you can get more lumber out of a tree. More stone out of a quarry. And more ore out of a mine. 

You’re getting more value out of the same resource

And that lets you grow, advance, and thrive faster than the other societies you’re competing with. 

Upselling is like upgrading your business’ ability to mine value from your customers. It lets you earn higher revenue per client. And that means you don’t have to spend nearly as much time on finding new clients… when you do it right

In this article you will learn how to master the art of upselling, why they work, and how they help you get more value from fewer customers.

So let’s start skyrocketing your customer value with upselling right now!

What is an Upsell?

Before getting into how upselling can help you boost your business, let’s make sure we understand what an upsell is. 

Here’s a quick definition we go by here at AutoGrow: 

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Simply put, an upsell is just a way to increase the value of each customer. It accomplishes that goal by getting a customer to buy other products or upgrade to higher value ones that you offer. 

There are two main ways of incorporating upselling into your business. 

1. Increase the Average Order Value (AOV) by getting clients to buy other products or upgrading before checking out. 

2. Increase the Customer Lifetime Value (CLV) by getting clients to buy other products or upgrading after checking out (this is where a solid email nurturing campaign comes in).

Why Do I Need to Start Upselling? 

Simple… 

It makes you money. Why else do you do anything in a business? 

Upselling increases the value of a customer. Whether it’s by boosting their initial purchase value or by increasing the lifetime value, the end result is still the same: your customers will be worth more. 

But what makes upselling different is the fact that it’s often an especially simple and cost-effective way of increasing the value of a customer. 

For example, we’ve all heard the old saying that it’s more costly to get new customers than to retain old ones. But do you know just how huge the difference is? 

Some estimates put it at being 5X more expensive to find new customers compared to selling to older ones. 

In fact, boosting customer retention rates by just 5% has been shown to lead to profit increases of 25% or more! That’s because returning customers have a higher CLV. They’re easier to sell to, often have a higher AOV when they do buy from you, and they are a great source for referrals too. 

Okay, so increasing retention is great for business. But what a lot of businesses don’t take into account is that boosting monetization of current customers also comes with a huge ROI boost

We covered this in another post about upselling but it’s worth repeating here. 

In a study of 512 different companies, Price Intelligently, a pricing strategy company, found that increasing monetization of current customers is the fastest route to boosting profits. 

As you can see from the graph below, improving the AOV (monetization) of customers by just 1% can lead to a 12.7% increase in profits

Retention came in second with a 6.71% profit boost per 1% improvement and acquisition was dead last with just a 3.32% increase. 

Source: Price Intelligently

The main takeaway here is clear: increasing the AOV and CLV of customers is more important than bringing in new ones. 

And upselling is the best and easiest way to do both.

Upselling vs. Cross-Selling

There’s usually quite a bit of confusion surrounding this question. And in fact, a lot of the time people just use the two terms interchangeably. I’m guilty of it myself. 

Now, in most cases using the wrong term here won’t be the difference between life or death. 

But when you get down to the nitty-gritty of it all, there are some distinct differences between the two. So let’s take a look at just what those differences are. 

  • Upselling: This is technically when a business or service offers an upgrade to a product that a customer has picked out. Take AutoGrow for example. Our instant Done-For-You funnel marketing team’s Ultimate Package is our most popular. But we also know some clients will get more value out of the Supreme Package. So we send out an upsell email describing the benefits of switching to the Supreme Package so our clients understand if it’s a good fit for their business. That’s an upsell
  • Cross-Selling: This is when you offer a different product or service to a customer after they’ve already chosen what they’re buying from you. Amazon does a great job at this. There’s an entire section of every product page that shows you what other products are frequently bought together with the one you’re looking at. If I look at a baseball glove, for example, it also shows me baseballs and glove oil, right on the same page! There are even a few buttons right there so you can add them to your cart with just one click. That’s cross-selling. 

There are plenty of other examples of upsells and cross-sells out there today, especially as e-commerce becomes the main way we shop today. 

And honestly, distinguishing between the two isn’t as important as understanding what both accomplish, which is increasing the value of a customer. 

3 Reasons Why Upselling/Cross-Selling Works

Upselling and cross-selling are two of the best ways to boost monetization and retention of customers. And as we’ve seen, focusing on these two areas in particular can increase profitability by 3-4X more than concentrating on customer acquisition. 

But why do these tactics work? Why do people respond to them? And what is it about these techniques that make them irresistible when done right? 

There are 3 reasons here…

  • Emotional Excitement: First and foremost, there’s the thrill of buying! Okay, so emotions may not be running too high when you’re purchasing a new loofa or a pack of undershirts. But there are two things in particular that bring out our emotional side when buying: the promise of a better you (smarter, sexier, funnier, happier, whatever!) and cashing in on an exceptional deal (high value for low cost). Upselling taps into those emotions from the original product and makes them even stronger. They’re taking what makes you feel good about buying and giving it a boost along the way. 
  • Already Spending Money: The hardest part about spending money is… well, first deciding to spend money. There’s the guilt, the uncertainty, the skepticism—it all adds up to you asking yourself, “Is this really worth it?” But when you’ve already barrelled past those obstacles once, it makes it so much easier to keep on doing it. Once you’ve actually decided to spend money on a purchase, you’ve broken down the floodgates. And making an additional purchase (as long as it has value) is going to be easier than deciding to make the first. 
  • Trust Is Built: Finally, once you’ve built up trust with a customer, it’s far easier to sell to them again and again. One of the most commonly pointed to stats here is from Marketing Metrics. It says, “The probability of selling to a new prospect is 5%-20%. The probability of selling to an existing customer is 60-70%.” That’s because you’ve already shown past customers that you deliver value. And once you’ve done that, you become a trusted source of quality products or services. All that’s left now is maintaining that trust.

7 Things to ALWAYS (and NEVER) Do When Upselling

So, now that we know what upselling is, why to do it, and why it works, let’s take a look at 7 tips for upselling the right way. 

1. ALWAYS Add Value 

If there’s only one thing you should take away from this article it’s that an upsell should always add value to your customer. 

Offering value is the key to getting your customers to sign on to buying more from you. 

And one way to make sure your customers are getting value from the products you’re offering is by choosing upsells that are relevant. This is especially important with cross-selling.

If you’re offering a course on marketing, for instance, a good cross-sell would be a collection of case studies outlining the best conversion optimization techniques like our Proven Sales Conversion Pack

The more relevant you can make your upsell or cross-sell offer, the more likely your customers will be to buy. 

2. NEVER Make It Meaningless

In the same vein as the last tip, don’t ever throw in products just for the sake of including an upsell. 

Upselling is first and foremost about increasing the value of a customer. 

But trying to get your customers to add on something that’s completely irrelevant to who they are and what they’re trying to do is a quick way to lose trust. Plus, it makes your brand seem a little scummy. 

So not only will your upsell probably not perform that great, but it’ll also knock your reputation down a peg too. And that can spell out trouble for keeping your customers loyal. 

3. ALWAYS Add Upsells During Checkout

Adding in upsells and cross-sells during the checkout process is a great way to increase AOV.

And you see this tactic everywhere where money is being exchanged. At the supermarket, on Amazon, at the gas station. That’s what all those mouthwatering candy bars are doing there in the checkout line!

They’re there because putting impulse buys at the end of a shopping experience gets people to buy. Throwing in a few relevant and useful add-ons to your checkout page is a quick and easy way to up the average order value of your customers. 

However, you don’t want to abandon the upsell best practice of making your offers relevant

Even if your offer is an impulse buy, you don’t want to do anything to poison the customer trust you’ve worked so hard to build. 

4. NEVER Make Their Prices Disproportionate

You never want to make the price difference between the original product and the upsell too high. 

Because if you do, no one is going to end up adding it on to their order. 

That’s because they’re already prepared to spend a certain amount once they’ve reached the checkout line. And if the price of the add ons you include is as much as the original product, it’s going to immediately seem like a bad offer. 

Instead, aim for a smaller price difference. Some experts say 25% of the original price is the sweet spot. Others claim 40%

In the end, though, the best thing you can do is A/B test what’s right for your business and your products. 

5. ALWAYS Follow Up With Emails (Seriously… ALWAYS)

Never miss a chance to follow up with past customers via email. 

Building and maintaining an email list is without a doubt one of the best ROIs in the industry. In fact, some estimates but the return on investment as high as 3,800% according to Hubspot.

That’s because email is a direct avenue of speaking to your customers. 

  • You can nurture the relationship by sending them content they’ll get value out of. 
  • You can clue them in to special promotions you’re running right now. 
  • You can show them the value of upgrading their current plan. 
  • And you can increase their CLV by cross-selling other products that they’re sure to enjoy. 

Just be sure to make things relevant and useful by personalizing each email. Otherwise, you may be doing more harm to your relationship than good. 

6. NEVER Resort to Sneaky Tactics

We’ve all seen those upsell pages that pull out all the superficial stops to get you to buy. 

The bright colors, the flashing lights, the bolded and uppercase fonts. They’re annoying, right? 

They reek of desperation. And they certainly don’t change your mind and get you to buy in most cases. 

But what’s even worse than that is using sneaky tactics to get your customers to add an upsell. 

Tactics like making it harder to decline your offer with hidden “No Thanks” buttons. Or wording the copy in such a confusing way that visitors click to opt out only to find they’ve actually been signed up for the add on. 

Do not do this. Doing so can instantly devastate the trust you’ve built with your audience this far. 

And even if they do end up signing on to purchase the upsell, they likely won’t be coming back to buy anything from you again. 

7. ALWAYS Try to Bundle Your Upsells When You Can

Bundling is a great tactic used by marketers in nearly every industry. It’s when the specific features and details of your product or service are included in one over-arching price rather than separated out. 

AutoGrow, for example, includes Copywriting, Quality Assurance, Graphic Design, Strategy Sessions, and Ad Management in all of our monthly packages of our Done-For-You sales funnel service without calling out the individual costs of each. 

In addition to this saving us a heck of a lot of time pricing each (after all, each is 100% integral to delivering a polished and high-converting end product), it also makes it easier to get buy-in from clients. 

Why? 

Because bundling actually triggers fewer pain points than seeing the costs of each feature. Instead of 5 price tags, clients only see 1. And for many, that’s a much easier pill to swallow.

Conclusion

Upselling is one of the best ways to increase the AOV and CLV of your audience. And at the same time, incorporating upselling/cross-selling into your business is actually more cost-effective than spending money on bringing in new customers. 

If your interest is piqued and you’re looking to start upselling (and honestly, why wouldn’t you be), there are 7 things in particular you can do to make it more successful…

  • ALWAYS Add Value
  • NEVER Make It Meaningless
  • ALWAYS Add Upsells During Checkout
  • NEVER Make Their Prices Disproportionate
  • ALWAYS Follow Up With Emails (Seriously… ALWAYS)
  • NEVER Resort To Sneaky Tactics
  • ALWAYS Try To Bundle Your Upsells When You Can

And if you do all of those, you’re sure to see a hefty bump in your bottom line thanks to your upselling efforts. 

How has upselling improved your business? What techniques, in particular, have you used that have gotten you results? 

Let us know in the comments below. 

And as always…

Keep funnelin’, stay focused,

Alex T.

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7 Techniques for Mastering the Upsell & Boosting Customer Buy-In

Source: https://www.autogrow.co/7-techniques-for-upselling/

Have you ever played Starcraft? And what about Civilization? Or any other computer strategy game for that matter? 

In these kinds of games, you basically control the growth and evolution of a society. 

In order to grow, you need to mine and collect resources. Lumber, ore, food, stones—you know, the building blocks of any great civilization. 

And like so many other games, the end goal is usually to dominate the other societies on the map. 

Now, a lot of people make the mistake of focusing all their efforts on boosting military power first thing. But the truth is, upgrading your ability to mine resources better is the key to success. Because when you focus on that, you can get more lumber out of a tree. More stone out of a quarry. And more ore out of a mine. 

You’re getting more value out of the same resource

And that lets you grow, advance, and thrive faster than the other societies you’re competing with. 

Upselling is like upgrading your business’ ability to mine value from your customers. It lets you earn higher revenue per client. And that means you don’t have to spend nearly as much time on finding new clients… when you do it right

In this article you will learn how to master the art of upselling, why they work, and how they help you get more value from fewer customers.

So let’s start skyrocketing your customer value with upselling right now!

What is an Upsell?

Before getting into how upselling can help you boost your business, let’s make sure we understand what an upsell is. 

Here’s a quick definition we go by here at AutoGrow: 

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Simply put, an upsell is just a way to increase the value of each customer. It accomplishes that goal by getting a customer to buy other products or upgrade to higher value ones that you offer. 

There are two main ways of incorporating upselling into your business. 

1. Increase the Average Order Value (AOV) by getting clients to buy other products or upgrading before checking out. 

2. Increase the Customer Lifetime Value (CLV) by getting clients to buy other products or upgrading after checking out (this is where a solid email nurturing campaign comes in).

Why Do I Need to Start Upselling? 

Simple… 

It makes you money. Why else do you do anything in a business? 

Upselling increases the value of a customer. Whether it’s by boosting their initial purchase value or by increasing the lifetime value, the end result is still the same: your customers will be worth more. 

But what makes upselling different is the fact that it’s often an especially simple and cost-effective way of increasing the value of a customer. 

For example, we’ve all heard the old saying that it’s more costly to get new customers than to retain old ones. But do you know just how huge the difference is? 

Some estimates put it at being 5X more expensive to find new customers compared to selling to older ones. 

In fact, boosting customer retention rates by just 5% has been shown to lead to profit increases of 25% or more! That’s because returning customers have a higher CLV. They’re easier to sell to, often have a higher AOV when they do buy from you, and they are a great source for referrals too. 

Okay, so increasing retention is great for business. But what a lot of businesses don’t take into account is that boosting monetization of current customers also comes with a huge ROI boost

We covered this in another post about upselling but it’s worth repeating here. 

In a study of 512 different companies, Price Intelligently, a pricing strategy company, found that increasing monetization of current customers is the fastest route to boosting profits. 

As you can see from the graph below, improving the AOV (monetization) of customers by just 1% can lead to a 12.7% increase in profits

Retention came in second with a 6.71% profit boost per 1% improvement and acquisition was dead last with just a 3.32% increase. 

Source: Price Intelligently

The main takeaway here is clear: increasing the AOV and CLV of customers is more important than bringing in new ones. 

And upselling is the best and easiest way to do both.

Upselling vs. Cross-Selling

There’s usually quite a bit of confusion surrounding this question. And in fact, a lot of the time people just use the two terms interchangeably. I’m guilty of it myself. 

Now, in most cases using the wrong term here won’t be the difference between life or death. 

But when you get down to the nitty-gritty of it all, there are some distinct differences between the two. So let’s take a look at just what those differences are. 

  • Upselling: This is technically when a business or service offers an upgrade to a product that a customer has picked out. Take AutoGrow for example. Our instant Done-For-You funnel marketing team’s Ultimate Package is our most popular. But we also know some clients will get more value out of the Supreme Package. So we send out an upsell email describing the benefits of switching to the Supreme Package so our clients understand if it’s a good fit for their business. That’s an upsell
  • Cross-Selling: This is when you offer a different product or service to a customer after they’ve already chosen what they’re buying from you. Amazon does a great job at this. There’s an entire section of every product page that shows you what other products are frequently bought together with the one you’re looking at. If I look at a baseball glove, for example, it also shows me baseballs and glove oil, right on the same page! There are even a few buttons right there so you can add them to your cart with just one click. That’s cross-selling. 

There are plenty of other examples of upsells and cross-sells out there today, especially as e-commerce becomes the main way we shop today. 

And honestly, distinguishing between the two isn’t as important as understanding what both accomplish, which is increasing the value of a customer. 

3 Reasons Why Upselling/Cross-Selling Works

Upselling and cross-selling are two of the best ways to boost monetization and retention of customers. And as we’ve seen, focusing on these two areas in particular can increase profitability by 3-4X more than concentrating on customer acquisition. 

But why do these tactics work? Why do people respond to them? And what is it about these techniques that make them irresistible when done right? 

There are 3 reasons here…

  • Emotional Excitement: First and foremost, there’s the thrill of buying! Okay, so emotions may not be running too high when you’re purchasing a new loofa or a pack of undershirts. But there are two things in particular that bring out our emotional side when buying: the promise of a better you (smarter, sexier, funnier, happier, whatever!) and cashing in on an exceptional deal (high value for low cost). Upselling taps into those emotions from the original product and makes them even stronger. They’re taking what makes you feel good about buying and giving it a boost along the way. 
  • Already Spending Money: The hardest part about spending money is… well, first deciding to spend money. There’s the guilt, the uncertainty, the skepticism—it all adds up to you asking yourself, “Is this really worth it?” But when you’ve already barrelled past those obstacles once, it makes it so much easier to keep on doing it. Once you’ve actually decided to spend money on a purchase, you’ve broken down the floodgates. And making an additional purchase (as long as it has value) is going to be easier than deciding to make the first. 
  • Trust Is Built: Finally, once you’ve built up trust with a customer, it’s far easier to sell to them again and again. One of the most commonly pointed to stats here is from Marketing Metrics. It says, “The probability of selling to a new prospect is 5%-20%. The probability of selling to an existing customer is 60-70%.” That’s because you’ve already shown past customers that you deliver value. And once you’ve done that, you become a trusted source of quality products or services. All that’s left now is maintaining that trust.

7 Things to ALWAYS (and NEVER) Do When Upselling

So, now that we know what upselling is, why to do it, and why it works, let’s take a look at 7 tips for upselling the right way. 

1. ALWAYS Add Value 

If there’s only one thing you should take away from this article it’s that an upsell should always add value to your customer. 

Offering value is the key to getting your customers to sign on to buying more from you. 

And one way to make sure your customers are getting value from the products you’re offering is by choosing upsells that are relevant. This is especially important with cross-selling.

If you’re offering a course on marketing, for instance, a good cross-sell would be a collection of case studies outlining the best conversion optimization techniques like our Proven Sales Conversion Pack

The more relevant you can make your upsell or cross-sell offer, the more likely your customers will be to buy. 

2. NEVER Make It Meaningless

In the same vein as the last tip, don’t ever throw in products just for the sake of including an upsell. 

Upselling is first and foremost about increasing the value of a customer. 

But trying to get your customers to add on something that’s completely irrelevant to who they are and what they’re trying to do is a quick way to lose trust. Plus, it makes your brand seem a little scummy. 

So not only will your upsell probably not perform that great, but it’ll also knock your reputation down a peg too. And that can spell out trouble for keeping your customers loyal. 

3. ALWAYS Add Upsells During Checkout

Adding in upsells and cross-sells during the checkout process is a great way to increase AOV.

And you see this tactic everywhere where money is being exchanged. At the supermarket, on Amazon, at the gas station. That’s what all those mouthwatering candy bars are doing there in the checkout line!

They’re there because putting impulse buys at the end of a shopping experience gets people to buy. Throwing in a few relevant and useful add-ons to your checkout page is a quick and easy way to up the average order value of your customers. 

However, you don’t want to abandon the upsell best practice of making your offers relevant

Even if your offer is an impulse buy, you don’t want to do anything to poison the customer trust you’ve worked so hard to build. 

4. NEVER Make Their Prices Disproportionate

You never want to make the price difference between the original product and the upsell too high. 

Because if you do, no one is going to end up adding it on to their order. 

That’s because they’re already prepared to spend a certain amount once they’ve reached the checkout line. And if the price of the add ons you include is as much as the original product, it’s going to immediately seem like a bad offer. 

Instead, aim for a smaller price difference. Some experts say 25% of the original price is the sweet spot. Others claim 40%

In the end, though, the best thing you can do is A/B test what’s right for your business and your products. 

5. ALWAYS Follow Up With Emails (Seriously… ALWAYS)

Never miss a chance to follow up with past customers via email. 

Building and maintaining an email list is without a doubt one of the best ROIs in the industry. In fact, some estimates but the return on investment as high as 3,800% according to Hubspot.

That’s because email is a direct avenue of speaking to your customers. 

  • You can nurture the relationship by sending them content they’ll get value out of. 
  • You can clue them in to special promotions you’re running right now. 
  • You can show them the value of upgrading their current plan. 
  • And you can increase their CLV by cross-selling other products that they’re sure to enjoy. 

Just be sure to make things relevant and useful by personalizing each email. Otherwise, you may be doing more harm to your relationship than good. 

6. NEVER Resort to Sneaky Tactics

We’ve all seen those upsell pages that pull out all the superficial stops to get you to buy. 

The bright colors, the flashing lights, the bolded and uppercase fonts. They’re annoying, right? 

They reek of desperation. And they certainly don’t change your mind and get you to buy in most cases. 

But what’s even worse than that is using sneaky tactics to get your customers to add an upsell. 

Tactics like making it harder to decline your offer with hidden “No Thanks” buttons. Or wording the copy in such a confusing way that visitors click to opt out only to find they’ve actually been signed up for the add on. 

Do not do this. Doing so can instantly devastate the trust you’ve built with your audience this far. 

And even if they do end up signing on to purchase the upsell, they likely won’t be coming back to buy anything from you again. 

7. ALWAYS Try to Bundle Your Upsells When You Can

Bundling is a great tactic used by marketers in nearly every industry. It’s when the specific features and details of your product or service are included in one over-arching price rather than separated out. 

AutoGrow, for example, includes Copywriting, Quality Assurance, Graphic Design, Strategy Sessions, and Ad Management in all of our monthly packages of our Done-For-You sales funnel service without calling out the individual costs of each. 

In addition to this saving us a heck of a lot of time pricing each (after all, each is 100% integral to delivering a polished and high-converting end product), it also makes it easier to get buy-in from clients. 

Why? 

Because bundling actually triggers fewer pain points than seeing the costs of each feature. Instead of 5 price tags, clients only see 1. And for many, that’s a much easier pill to swallow.

Conclusion

Upselling is one of the best ways to increase the AOV and CLV of your audience. And at the same time, incorporating upselling/cross-selling into your business is actually more cost-effective than spending money on bringing in new customers. 

If your interest is piqued and you’re looking to start upselling (and honestly, why wouldn’t you be), there are 7 things in particular you can do to make it more successful…

  • ALWAYS Add Value
  • NEVER Make It Meaningless
  • ALWAYS Add Upsells During Checkout
  • NEVER Make Their Prices Disproportionate
  • ALWAYS Follow Up With Emails (Seriously… ALWAYS)
  • NEVER Resort To Sneaky Tactics
  • ALWAYS Try To Bundle Your Upsells When You Can

And if you do all of those, you’re sure to see a hefty bump in your bottom line thanks to your upselling efforts. 

How has upselling improved your business? What techniques, in particular, have you used that have gotten you results? 

Let us know in the comments below. 

And as always…

Keep funnelin’, stay focused,

Alex T.

Read more

7 Techniques for Mastering the Upsell & Boosting Customer Buy-In

Source: https://www.autogrow.co/7-techniques-for-upselling/

Have you ever played Starcraft? And what about Civilization? Or any other computer strategy game for that matter? 

In these kinds of games, you basically control the growth and evolution of a society. 

In order to grow, you need to mine and collect resources. Lumber, ore, food, stones—you know, the building blocks of any great civilization. 

And like so many other games, the end goal is usually to dominate the other societies on the map. 

Now, a lot of people make the mistake of focusing all their efforts on boosting military power first thing. But the truth is, upgrading your ability to mine resources better is the key to success. Because when you focus on that, you can get more lumber out of a tree. More stone out of a quarry. And more ore out of a mine. 

You’re getting more value out of the same resource

And that lets you grow, advance, and thrive faster than the other societies you’re competing with. 

Upselling is like upgrading your business’ ability to mine value from your customers. It lets you earn higher revenue per client. And that means you don’t have to spend nearly as much time on finding new clients… when you do it right

In this article you will learn how to master the art of upselling, why they work, and how they help you get more value from fewer customers.

So let’s start skyrocketing your customer value with upselling right now!

What is an Upsell?

Before getting into how upselling can help you boost your business, let’s make sure we understand what an upsell is. 

Here’s a quick definition we go by here at AutoGrow: 

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Simply put, an upsell is just a way to increase the value of each customer. It accomplishes that goal by getting a customer to buy other products or upgrade to higher value ones that you offer. 

There are two main ways of incorporating upselling into your business. 

1. Increase the Average Order Value (AOV) by getting clients to buy other products or upgrading before checking out. 

2. Increase the Customer Lifetime Value (CLV) by getting clients to buy other products or upgrading after checking out (this is where a solid email nurturing campaign comes in).

Why Do I Need to Start Upselling? 

Simple… 

It makes you money. Why else do you do anything in a business? 

Upselling increases the value of a customer. Whether it’s by boosting their initial purchase value or by increasing the lifetime value, the end result is still the same: your customers will be worth more. 

But what makes upselling different is the fact that it’s often an especially simple and cost-effective way of increasing the value of a customer. 

For example, we’ve all heard the old saying that it’s more costly to get new customers than to retain old ones. But do you know just how huge the difference is? 

Some estimates put it at being 5X more expensive to find new customers compared to selling to older ones. 

In fact, boosting customer retention rates by just 5% has been shown to lead to profit increases of 25% or more! That’s because returning customers have a higher CLV. They’re easier to sell to, often have a higher AOV when they do buy from you, and they are a great source for referrals too. 

Okay, so increasing retention is great for business. But what a lot of businesses don’t take into account is that boosting monetization of current customers also comes with a huge ROI boost

We covered this in another post about upselling but it’s worth repeating here. 

In a study of 512 different companies, Price Intelligently, a pricing strategy company, found that increasing monetization of current customers is the fastest route to boosting profits. 

As you can see from the graph below, improving the AOV (monetization) of customers by just 1% can lead to a 12.7% increase in profits

Retention came in second with a 6.71% profit boost per 1% improvement and acquisition was dead last with just a 3.32% increase. 

Source: Price Intelligently

The main takeaway here is clear: increasing the AOV and CLV of customers is more important than bringing in new ones. 

And upselling is the best and easiest way to do both.

Upselling vs. Cross-Selling

There’s usually quite a bit of confusion surrounding this question. And in fact, a lot of the time people just use the two terms interchangeably. I’m guilty of it myself. 

Now, in most cases using the wrong term here won’t be the difference between life or death. 

But when you get down to the nitty-gritty of it all, there are some distinct differences between the two. So let’s take a look at just what those differences are. 

  • Upselling: This is technically when a business or service offers an upgrade to a product that a customer has picked out. Take AutoGrow for example. Our instant Done-For-You funnel marketing team’s Ultimate Package is our most popular. But we also know some clients will get more value out of the Supreme Package. So we send out an upsell email describing the benefits of switching to the Supreme Package so our clients understand if it’s a good fit for their business. That’s an upsell
  • Cross-Selling: This is when you offer a different product or service to a customer after they’ve already chosen what they’re buying from you. Amazon does a great job at this. There’s an entire section of every product page that shows you what other products are frequently bought together with the one you’re looking at. If I look at a baseball glove, for example, it also shows me baseballs and glove oil, right on the same page! There are even a few buttons right there so you can add them to your cart with just one click. That’s cross-selling. 

There are plenty of other examples of upsells and cross-sells out there today, especially as e-commerce becomes the main way we shop today. 

And honestly, distinguishing between the two isn’t as important as understanding what both accomplish, which is increasing the value of a customer. 

3 Reasons Why Upselling/Cross-Selling Works

Upselling and cross-selling are two of the best ways to boost monetization and retention of customers. And as we’ve seen, focusing on these two areas in particular can increase profitability by 3-4X more than concentrating on customer acquisition. 

But why do these tactics work? Why do people respond to them? And what is it about these techniques that make them irresistible when done right? 

There are 3 reasons here…

  • Emotional Excitement: First and foremost, there’s the thrill of buying! Okay, so emotions may not be running too high when you’re purchasing a new loofa or a pack of undershirts. But there are two things in particular that bring out our emotional side when buying: the promise of a better you (smarter, sexier, funnier, happier, whatever!) and cashing in on an exceptional deal (high value for low cost). Upselling taps into those emotions from the original product and makes them even stronger. They’re taking what makes you feel good about buying and giving it a boost along the way. 
  • Already Spending Money: The hardest part about spending money is… well, first deciding to spend money. There’s the guilt, the uncertainty, the skepticism—it all adds up to you asking yourself, “Is this really worth it?” But when you’ve already barrelled past those obstacles once, it makes it so much easier to keep on doing it. Once you’ve actually decided to spend money on a purchase, you’ve broken down the floodgates. And making an additional purchase (as long as it has value) is going to be easier than deciding to make the first. 
  • Trust Is Built: Finally, once you’ve built up trust with a customer, it’s far easier to sell to them again and again. One of the most commonly pointed to stats here is from Marketing Metrics. It says, “The probability of selling to a new prospect is 5%-20%. The probability of selling to an existing customer is 60-70%.” That’s because you’ve already shown past customers that you deliver value. And once you’ve done that, you become a trusted source of quality products or services. All that’s left now is maintaining that trust.

7 Things to ALWAYS (and NEVER) Do When Upselling

So, now that we know what upselling is, why to do it, and why it works, let’s take a look at 7 tips for upselling the right way. 

1. ALWAYS Add Value 

If there’s only one thing you should take away from this article it’s that an upsell should always add value to your customer. 

Offering value is the key to getting your customers to sign on to buying more from you. 

And one way to make sure your customers are getting value from the products you’re offering is by choosing upsells that are relevant. This is especially important with cross-selling.

If you’re offering a course on marketing, for instance, a good cross-sell would be a collection of case studies outlining the best conversion optimization techniques like our Proven Sales Conversion Pack

The more relevant you can make your upsell or cross-sell offer, the more likely your customers will be to buy. 

2. NEVER Make It Meaningless

In the same vein as the last tip, don’t ever throw in products just for the sake of including an upsell. 

Upselling is first and foremost about increasing the value of a customer. 

But trying to get your customers to add on something that’s completely irrelevant to who they are and what they’re trying to do is a quick way to lose trust. Plus, it makes your brand seem a little scummy. 

So not only will your upsell probably not perform that great, but it’ll also knock your reputation down a peg too. And that can spell out trouble for keeping your customers loyal. 

3. ALWAYS Add Upsells During Checkout

Adding in upsells and cross-sells during the checkout process is a great way to increase AOV.

And you see this tactic everywhere where money is being exchanged. At the supermarket, on Amazon, at the gas station. That’s what all those mouthwatering candy bars are doing there in the checkout line!

They’re there because putting impulse buys at the end of a shopping experience gets people to buy. Throwing in a few relevant and useful add-ons to your checkout page is a quick and easy way to up the average order value of your customers. 

However, you don’t want to abandon the upsell best practice of making your offers relevant

Even if your offer is an impulse buy, you don’t want to do anything to poison the customer trust you’ve worked so hard to build. 

4. NEVER Make Their Prices Disproportionate

You never want to make the price difference between the original product and the upsell too high. 

Because if you do, no one is going to end up adding it on to their order. 

That’s because they’re already prepared to spend a certain amount once they’ve reached the checkout line. And if the price of the add ons you include is as much as the original product, it’s going to immediately seem like a bad offer. 

Instead, aim for a smaller price difference. Some experts say 25% of the original price is the sweet spot. Others claim 40%

In the end, though, the best thing you can do is A/B test what’s right for your business and your products. 

5. ALWAYS Follow Up With Emails (Seriously… ALWAYS)

Never miss a chance to follow up with past customers via email. 

Building and maintaining an email list is without a doubt one of the best ROIs in the industry. In fact, some estimates but the return on investment as high as 3,800% according to Hubspot.

That’s because email is a direct avenue of speaking to your customers. 

  • You can nurture the relationship by sending them content they’ll get value out of. 
  • You can clue them in to special promotions you’re running right now. 
  • You can show them the value of upgrading their current plan. 
  • And you can increase their CLV by cross-selling other products that they’re sure to enjoy. 

Just be sure to make things relevant and useful by personalizing each email. Otherwise, you may be doing more harm to your relationship than good. 

6. NEVER Resort to Sneaky Tactics

We’ve all seen those upsell pages that pull out all the superficial stops to get you to buy. 

The bright colors, the flashing lights, the bolded and uppercase fonts. They’re annoying, right? 

They reek of desperation. And they certainly don’t change your mind and get you to buy in most cases. 

But what’s even worse than that is using sneaky tactics to get your customers to add an upsell. 

Tactics like making it harder to decline your offer with hidden “No Thanks” buttons. Or wording the copy in such a confusing way that visitors click to opt out only to find they’ve actually been signed up for the add on. 

Do not do this. Doing so can instantly devastate the trust you’ve built with your audience this far. 

And even if they do end up signing on to purchase the upsell, they likely won’t be coming back to buy anything from you again. 

7. ALWAYS Try to Bundle Your Upsells When You Can

Bundling is a great tactic used by marketers in nearly every industry. It’s when the specific features and details of your product or service are included in one over-arching price rather than separated out. 

AutoGrow, for example, includes Copywriting, Quality Assurance, Graphic Design, Strategy Sessions, and Ad Management in all of our monthly packages of our Done-For-You sales funnel service without calling out the individual costs of each. 

In addition to this saving us a heck of a lot of time pricing each (after all, each is 100% integral to delivering a polished and high-converting end product), it also makes it easier to get buy-in from clients. 

Why? 

Because bundling actually triggers fewer pain points than seeing the costs of each feature. Instead of 5 price tags, clients only see 1. And for many, that’s a much easier pill to swallow.

Conclusion

Upselling is one of the best ways to increase the AOV and CLV of your audience. And at the same time, incorporating upselling/cross-selling into your business is actually more cost-effective than spending money on bringing in new customers. 

If your interest is piqued and you’re looking to start upselling (and honestly, why wouldn’t you be), there are 7 things in particular you can do to make it more successful…

  • ALWAYS Add Value
  • NEVER Make It Meaningless
  • ALWAYS Add Upsells During Checkout
  • NEVER Make Their Prices Disproportionate
  • ALWAYS Follow Up With Emails (Seriously… ALWAYS)
  • NEVER Resort To Sneaky Tactics
  • ALWAYS Try To Bundle Your Upsells When You Can

And if you do all of those, you’re sure to see a hefty bump in your bottom line thanks to your upselling efforts. 

How has upselling improved your business? What techniques, in particular, have you used that have gotten you results? 

Let us know in the comments below. 

And as always…

Keep funnelin’, stay focused,

Alex T.

Read more

7 Techniques for Mastering the Upsell & Boosting Customer Buy-In

Source: https://www.autogrow.co/7-techniques-for-upselling/

Have you ever played Starcraft? And what about Civilization? Or any other computer strategy game for that matter? 

In these kinds of games, you basically control the growth and evolution of a society. 

In order to grow, you need to mine and collect resources. Lumber, ore, food, stones—you know, the building blocks of any great civilization. 

And like so many other games, the end goal is usually to dominate the other societies on the map. 

Now, a lot of people make the mistake of focusing all their efforts on boosting military power first thing. But the truth is, upgrading your ability to mine resources better is the key to success. Because when you focus on that, you can get more lumber out of a tree. More stone out of a quarry. And more ore out of a mine. 

You’re getting more value out of the same resource

And that lets you grow, advance, and thrive faster than the other societies you’re competing with. 

Upselling is like upgrading your business’ ability to mine value from your customers. It lets you earn higher revenue per client. And that means you don’t have to spend nearly as much time on finding new clients… when you do it right

In this article you will learn how to master the art of upselling, why they work, and how they help you get more value from fewer customers.

So let’s start skyrocketing your customer value with upselling right now!

What is an Upsell?

Before getting into how upselling can help you boost your business, let’s make sure we understand what an upsell is. 

Here’s a quick definition we go by here at AutoGrow: 

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Simply put, an upsell is just a way to increase the value of each customer. It accomplishes that goal by getting a customer to buy other products or upgrade to higher value ones that you offer. 

There are two main ways of incorporating upselling into your business. 

1. Increase the Average Order Value (AOV) by getting clients to buy other products or upgrading before checking out. 

2. Increase the Customer Lifetime Value (CLV) by getting clients to buy other products or upgrading after checking out (this is where a solid email nurturing campaign comes in).

Why Do I Need to Start Upselling? 

Simple… 

It makes you money. Why else do you do anything in a business? 

Upselling increases the value of a customer. Whether it’s by boosting their initial purchase value or by increasing the lifetime value, the end result is still the same: your customers will be worth more. 

But what makes upselling different is the fact that it’s often an especially simple and cost-effective way of increasing the value of a customer. 

For example, we’ve all heard the old saying that it’s more costly to get new customers than to retain old ones. But do you know just how huge the difference is? 

Some estimates put it at being 5X more expensive to find new customers compared to selling to older ones. 

In fact, boosting customer retention rates by just 5% has been shown to lead to profit increases of 25% or more! That’s because returning customers have a higher CLV. They’re easier to sell to, often have a higher AOV when they do buy from you, and they are a great source for referrals too. 

Okay, so increasing retention is great for business. But what a lot of businesses don’t take into account is that boosting monetization of current customers also comes with a huge ROI boost

We covered this in another post about upselling but it’s worth repeating here. 

In a study of 512 different companies, Price Intelligently, a pricing strategy company, found that increasing monetization of current customers is the fastest route to boosting profits. 

As you can see from the graph below, improving the AOV (monetization) of customers by just 1% can lead to a 12.7% increase in profits

Retention came in second with a 6.71% profit boost per 1% improvement and acquisition was dead last with just a 3.32% increase. 

Source: Price Intelligently

The main takeaway here is clear: increasing the AOV and CLV of customers is more important than bringing in new ones. 

And upselling is the best and easiest way to do both.

Upselling vs. Cross-Selling

There’s usually quite a bit of confusion surrounding this question. And in fact, a lot of the time people just use the two terms interchangeably. I’m guilty of it myself. 

Now, in most cases using the wrong term here won’t be the difference between life or death. 

But when you get down to the nitty-gritty of it all, there are some distinct differences between the two. So let’s take a look at just what those differences are. 

  • Upselling: This is technically when a business or service offers an upgrade to a product that a customer has picked out. Take AutoGrow for example. Our instant Done-For-You funnel marketing team’s Ultimate Package is our most popular. But we also know some clients will get more value out of the Supreme Package. So we send out an upsell email describing the benefits of switching to the Supreme Package so our clients understand if it’s a good fit for their business. That’s an upsell
  • Cross-Selling: This is when you offer a different product or service to a customer after they’ve already chosen what they’re buying from you. Amazon does a great job at this. There’s an entire section of every product page that shows you what other products are frequently bought together with the one you’re looking at. If I look at a baseball glove, for example, it also shows me baseballs and glove oil, right on the same page! There are even a few buttons right there so you can add them to your cart with just one click. That’s cross-selling. 

There are plenty of other examples of upsells and cross-sells out there today, especially as e-commerce becomes the main way we shop today. 

And honestly, distinguishing between the two isn’t as important as understanding what both accomplish, which is increasing the value of a customer. 

3 Reasons Why Upselling/Cross-Selling Works

Upselling and cross-selling are two of the best ways to boost monetization and retention of customers. And as we’ve seen, focusing on these two areas in particular can increase profitability by 3-4X more than concentrating on customer acquisition. 

But why do these tactics work? Why do people respond to them? And what is it about these techniques that make them irresistible when done right? 

There are 3 reasons here…

  • Emotional Excitement: First and foremost, there’s the thrill of buying! Okay, so emotions may not be running too high when you’re purchasing a new loofa or a pack of undershirts. But there are two things in particular that bring out our emotional side when buying: the promise of a better you (smarter, sexier, funnier, happier, whatever!) and cashing in on an exceptional deal (high value for low cost). Upselling taps into those emotions from the original product and makes them even stronger. They’re taking what makes you feel good about buying and giving it a boost along the way. 
  • Already Spending Money: The hardest part about spending money is… well, first deciding to spend money. There’s the guilt, the uncertainty, the skepticism—it all adds up to you asking yourself, “Is this really worth it?” But when you’ve already barrelled past those obstacles once, it makes it so much easier to keep on doing it. Once you’ve actually decided to spend money on a purchase, you’ve broken down the floodgates. And making an additional purchase (as long as it has value) is going to be easier than deciding to make the first. 
  • Trust Is Built: Finally, once you’ve built up trust with a customer, it’s far easier to sell to them again and again. One of the most commonly pointed to stats here is from Marketing Metrics. It says, “The probability of selling to a new prospect is 5%-20%. The probability of selling to an existing customer is 60-70%.” That’s because you’ve already shown past customers that you deliver value. And once you’ve done that, you become a trusted source of quality products or services. All that’s left now is maintaining that trust.

7 Things to ALWAYS (and NEVER) Do When Upselling

So, now that we know what upselling is, why to do it, and why it works, let’s take a look at 7 tips for upselling the right way. 

1. ALWAYS Add Value 

If there’s only one thing you should take away from this article it’s that an upsell should always add value to your customer. 

Offering value is the key to getting your customers to sign on to buying more from you. 

And one way to make sure your customers are getting value from the products you’re offering is by choosing upsells that are relevant. This is especially important with cross-selling.

If you’re offering a course on marketing, for instance, a good cross-sell would be a collection of case studies outlining the best conversion optimization techniques like our Proven Sales Conversion Pack

The more relevant you can make your upsell or cross-sell offer, the more likely your customers will be to buy. 

2. NEVER Make It Meaningless

In the same vein as the last tip, don’t ever throw in products just for the sake of including an upsell. 

Upselling is first and foremost about increasing the value of a customer. 

But trying to get your customers to add on something that’s completely irrelevant to who they are and what they’re trying to do is a quick way to lose trust. Plus, it makes your brand seem a little scummy. 

So not only will your upsell probably not perform that great, but it’ll also knock your reputation down a peg too. And that can spell out trouble for keeping your customers loyal. 

3. ALWAYS Add Upsells During Checkout

Adding in upsells and cross-sells during the checkout process is a great way to increase AOV.

And you see this tactic everywhere where money is being exchanged. At the supermarket, on Amazon, at the gas station. That’s what all those mouthwatering candy bars are doing there in the checkout line!

They’re there because putting impulse buys at the end of a shopping experience gets people to buy. Throwing in a few relevant and useful add-ons to your checkout page is a quick and easy way to up the average order value of your customers. 

However, you don’t want to abandon the upsell best practice of making your offers relevant

Even if your offer is an impulse buy, you don’t want to do anything to poison the customer trust you’ve worked so hard to build. 

4. NEVER Make Their Prices Disproportionate

You never want to make the price difference between the original product and the upsell too high. 

Because if you do, no one is going to end up adding it on to their order. 

That’s because they’re already prepared to spend a certain amount once they’ve reached the checkout line. And if the price of the add ons you include is as much as the original product, it’s going to immediately seem like a bad offer. 

Instead, aim for a smaller price difference. Some experts say 25% of the original price is the sweet spot. Others claim 40%

In the end, though, the best thing you can do is A/B test what’s right for your business and your products. 

5. ALWAYS Follow Up With Emails (Seriously… ALWAYS)

Never miss a chance to follow up with past customers via email. 

Building and maintaining an email list is without a doubt one of the best ROIs in the industry. In fact, some estimates but the return on investment as high as 3,800% according to Hubspot.

That’s because email is a direct avenue of speaking to your customers. 

  • You can nurture the relationship by sending them content they’ll get value out of. 
  • You can clue them in to special promotions you’re running right now. 
  • You can show them the value of upgrading their current plan. 
  • And you can increase their CLV by cross-selling other products that they’re sure to enjoy. 

Just be sure to make things relevant and useful by personalizing each email. Otherwise, you may be doing more harm to your relationship than good. 

6. NEVER Resort to Sneaky Tactics

We’ve all seen those upsell pages that pull out all the superficial stops to get you to buy. 

The bright colors, the flashing lights, the bolded and uppercase fonts. They’re annoying, right? 

They reek of desperation. And they certainly don’t change your mind and get you to buy in most cases. 

But what’s even worse than that is using sneaky tactics to get your customers to add an upsell. 

Tactics like making it harder to decline your offer with hidden “No Thanks” buttons. Or wording the copy in such a confusing way that visitors click to opt out only to find they’ve actually been signed up for the add on. 

Do not do this. Doing so can instantly devastate the trust you’ve built with your audience this far. 

And even if they do end up signing on to purchase the upsell, they likely won’t be coming back to buy anything from you again. 

7. ALWAYS Try to Bundle Your Upsells When You Can

Bundling is a great tactic used by marketers in nearly every industry. It’s when the specific features and details of your product or service are included in one over-arching price rather than separated out. 

AutoGrow, for example, includes Copywriting, Quality Assurance, Graphic Design, Strategy Sessions, and Ad Management in all of our monthly packages of our Done-For-You sales funnel service without calling out the individual costs of each. 

In addition to this saving us a heck of a lot of time pricing each (after all, each is 100% integral to delivering a polished and high-converting end product), it also makes it easier to get buy-in from clients. 

Why? 

Because bundling actually triggers fewer pain points than seeing the costs of each feature. Instead of 5 price tags, clients only see 1. And for many, that’s a much easier pill to swallow.

Conclusion

Upselling is one of the best ways to increase the AOV and CLV of your audience. And at the same time, incorporating upselling/cross-selling into your business is actually more cost-effective than spending money on bringing in new customers. 

If your interest is piqued and you’re looking to start upselling (and honestly, why wouldn’t you be), there are 7 things in particular you can do to make it more successful…

  • ALWAYS Add Value
  • NEVER Make It Meaningless
  • ALWAYS Add Upsells During Checkout
  • NEVER Make Their Prices Disproportionate
  • ALWAYS Follow Up With Emails (Seriously… ALWAYS)
  • NEVER Resort To Sneaky Tactics
  • ALWAYS Try To Bundle Your Upsells When You Can

And if you do all of those, you’re sure to see a hefty bump in your bottom line thanks to your upselling efforts. 

How has upselling improved your business? What techniques, in particular, have you used that have gotten you results? 

Let us know in the comments below. 

And as always…

Keep funnelin’, stay focused,

Alex T.

Read more

7 Techniques for Mastering the Upsell & Boosting Customer Buy-In

Source: https://www.autogrow.co/7-techniques-for-upselling/

Have you ever played Starcraft? And what about Civilization? Or any other computer strategy game for that matter? 

In these kinds of games, you basically control the growth and evolution of a society. 

In order to grow, you need to mine and collect resources. Lumber, ore, food, stones—you know, the building blocks of any great civilization. 

And like so many other games, the end goal is usually to dominate the other societies on the map. 

Now, a lot of people make the mistake of focusing all their efforts on boosting military power first thing. But the truth is, upgrading your ability to mine resources better is the key to success. Because when you focus on that, you can get more lumber out of a tree. More stone out of a quarry. And more ore out of a mine. 

You’re getting more value out of the same resource

And that lets you grow, advance, and thrive faster than the other societies you’re competing with. 

Upselling is like upgrading your business’ ability to mine value from your customers. It lets you earn higher revenue per client. And that means you don’t have to spend nearly as much time on finding new clients… when you do it right

In this article you will learn how to master the art of upselling, why they work, and how they help you get more value from fewer customers.

So let’s start skyrocketing your customer value with upselling right now!

What is an Upsell?

Before getting into how upselling can help you boost your business, let’s make sure we understand what an upsell is. 

Here’s a quick definition we go by here at AutoGrow: 

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Simply put, an upsell is just a way to increase the value of each customer. It accomplishes that goal by getting a customer to buy other products or upgrade to higher value ones that you offer. 

There are two main ways of incorporating upselling into your business. 

1. Increase the Average Order Value (AOV) by getting clients to buy other products or upgrading before checking out. 

2. Increase the Customer Lifetime Value (CLV) by getting clients to buy other products or upgrading after checking out (this is where a solid email nurturing campaign comes in).

Why Do I Need to Start Upselling? 

Simple… 

It makes you money. Why else do you do anything in a business? 

Upselling increases the value of a customer. Whether it’s by boosting their initial purchase value or by increasing the lifetime value, the end result is still the same: your customers will be worth more. 

But what makes upselling different is the fact that it’s often an especially simple and cost-effective way of increasing the value of a customer. 

For example, we’ve all heard the old saying that it’s more costly to get new customers than to retain old ones. But do you know just how huge the difference is? 

Some estimates put it at being 5X more expensive to find new customers compared to selling to older ones. 

In fact, boosting customer retention rates by just 5% has been shown to lead to profit increases of 25% or more! That’s because returning customers have a higher CLV. They’re easier to sell to, often have a higher AOV when they do buy from you, and they are a great source for referrals too. 

Okay, so increasing retention is great for business. But what a lot of businesses don’t take into account is that boosting monetization of current customers also comes with a huge ROI boost

We covered this in another post about upselling but it’s worth repeating here. 

In a study of 512 different companies, Price Intelligently, a pricing strategy company, found that increasing monetization of current customers is the fastest route to boosting profits. 

As you can see from the graph below, improving the AOV (monetization) of customers by just 1% can lead to a 12.7% increase in profits

Retention came in second with a 6.71% profit boost per 1% improvement and acquisition was dead last with just a 3.32% increase. 

Source: Price Intelligently

The main takeaway here is clear: increasing the AOV and CLV of customers is more important than bringing in new ones. 

And upselling is the best and easiest way to do both.

Upselling vs. Cross-Selling

There’s usually quite a bit of confusion surrounding this question. And in fact, a lot of the time people just use the two terms interchangeably. I’m guilty of it myself. 

Now, in most cases using the wrong term here won’t be the difference between life or death. 

But when you get down to the nitty-gritty of it all, there are some distinct differences between the two. So let’s take a look at just what those differences are. 

  • Upselling: This is technically when a business or service offers an upgrade to a product that a customer has picked out. Take AutoGrow for example. Our instant Done-For-You funnel marketing team’s Ultimate Package is our most popular. But we also know some clients will get more value out of the Supreme Package. So we send out an upsell email describing the benefits of switching to the Supreme Package so our clients understand if it’s a good fit for their business. That’s an upsell
  • Cross-Selling: This is when you offer a different product or service to a customer after they’ve already chosen what they’re buying from you. Amazon does a great job at this. There’s an entire section of every product page that shows you what other products are frequently bought together with the one you’re looking at. If I look at a baseball glove, for example, it also shows me baseballs and glove oil, right on the same page! There are even a few buttons right there so you can add them to your cart with just one click. That’s cross-selling. 

There are plenty of other examples of upsells and cross-sells out there today, especially as e-commerce becomes the main way we shop today. 

And honestly, distinguishing between the two isn’t as important as understanding what both accomplish, which is increasing the value of a customer. 

3 Reasons Why Upselling/Cross-Selling Works

Upselling and cross-selling are two of the best ways to boost monetization and retention of customers. And as we’ve seen, focusing on these two areas in particular can increase profitability by 3-4X more than concentrating on customer acquisition. 

But why do these tactics work? Why do people respond to them? And what is it about these techniques that make them irresistible when done right? 

There are 3 reasons here…

  • Emotional Excitement: First and foremost, there’s the thrill of buying! Okay, so emotions may not be running too high when you’re purchasing a new loofa or a pack of undershirts. But there are two things in particular that bring out our emotional side when buying: the promise of a better you (smarter, sexier, funnier, happier, whatever!) and cashing in on an exceptional deal (high value for low cost). Upselling taps into those emotions from the original product and makes them even stronger. They’re taking what makes you feel good about buying and giving it a boost along the way. 
  • Already Spending Money: The hardest part about spending money is… well, first deciding to spend money. There’s the guilt, the uncertainty, the skepticism—it all adds up to you asking yourself, “Is this really worth it?” But when you’ve already barrelled past those obstacles once, it makes it so much easier to keep on doing it. Once you’ve actually decided to spend money on a purchase, you’ve broken down the floodgates. And making an additional purchase (as long as it has value) is going to be easier than deciding to make the first. 
  • Trust Is Built: Finally, once you’ve built up trust with a customer, it’s far easier to sell to them again and again. One of the most commonly pointed to stats here is from Marketing Metrics. It says, “The probability of selling to a new prospect is 5%-20%. The probability of selling to an existing customer is 60-70%.” That’s because you’ve already shown past customers that you deliver value. And once you’ve done that, you become a trusted source of quality products or services. All that’s left now is maintaining that trust.

7 Things to ALWAYS (and NEVER) Do When Upselling

So, now that we know what upselling is, why to do it, and why it works, let’s take a look at 7 tips for upselling the right way. 

1. ALWAYS Add Value 

If there’s only one thing you should take away from this article it’s that an upsell should always add value to your customer. 

Offering value is the key to getting your customers to sign on to buying more from you. 

And one way to make sure your customers are getting value from the products you’re offering is by choosing upsells that are relevant. This is especially important with cross-selling.

If you’re offering a course on marketing, for instance, a good cross-sell would be a collection of case studies outlining the best conversion optimization techniques like our Proven Sales Conversion Pack

The more relevant you can make your upsell or cross-sell offer, the more likely your customers will be to buy. 

2. NEVER Make It Meaningless

In the same vein as the last tip, don’t ever throw in products just for the sake of including an upsell. 

Upselling is first and foremost about increasing the value of a customer. 

But trying to get your customers to add on something that’s completely irrelevant to who they are and what they’re trying to do is a quick way to lose trust. Plus, it makes your brand seem a little scummy. 

So not only will your upsell probably not perform that great, but it’ll also knock your reputation down a peg too. And that can spell out trouble for keeping your customers loyal. 

3. ALWAYS Add Upsells During Checkout

Adding in upsells and cross-sells during the checkout process is a great way to increase AOV.

And you see this tactic everywhere where money is being exchanged. At the supermarket, on Amazon, at the gas station. That’s what all those mouthwatering candy bars are doing there in the checkout line!

They’re there because putting impulse buys at the end of a shopping experience gets people to buy. Throwing in a few relevant and useful add-ons to your checkout page is a quick and easy way to up the average order value of your customers. 

However, you don’t want to abandon the upsell best practice of making your offers relevant

Even if your offer is an impulse buy, you don’t want to do anything to poison the customer trust you’ve worked so hard to build. 

4. NEVER Make Their Prices Disproportionate

You never want to make the price difference between the original product and the upsell too high. 

Because if you do, no one is going to end up adding it on to their order. 

That’s because they’re already prepared to spend a certain amount once they’ve reached the checkout line. And if the price of the add ons you include is as much as the original product, it’s going to immediately seem like a bad offer. 

Instead, aim for a smaller price difference. Some experts say 25% of the original price is the sweet spot. Others claim 40%

In the end, though, the best thing you can do is A/B test what’s right for your business and your products. 

5. ALWAYS Follow Up With Emails (Seriously… ALWAYS)

Never miss a chance to follow up with past customers via email. 

Building and maintaining an email list is without a doubt one of the best ROIs in the industry. In fact, some estimates but the return on investment as high as 3,800% according to Hubspot.

That’s because email is a direct avenue of speaking to your customers. 

  • You can nurture the relationship by sending them content they’ll get value out of. 
  • You can clue them in to special promotions you’re running right now. 
  • You can show them the value of upgrading their current plan. 
  • And you can increase their CLV by cross-selling other products that they’re sure to enjoy. 

Just be sure to make things relevant and useful by personalizing each email. Otherwise, you may be doing more harm to your relationship than good. 

6. NEVER Resort to Sneaky Tactics

We’ve all seen those upsell pages that pull out all the superficial stops to get you to buy. 

The bright colors, the flashing lights, the bolded and uppercase fonts. They’re annoying, right? 

They reek of desperation. And they certainly don’t change your mind and get you to buy in most cases. 

But what’s even worse than that is using sneaky tactics to get your customers to add an upsell. 

Tactics like making it harder to decline your offer with hidden “No Thanks” buttons. Or wording the copy in such a confusing way that visitors click to opt out only to find they’ve actually been signed up for the add on. 

Do not do this. Doing so can instantly devastate the trust you’ve built with your audience this far. 

And even if they do end up signing on to purchase the upsell, they likely won’t be coming back to buy anything from you again. 

7. ALWAYS Try to Bundle Your Upsells When You Can

Bundling is a great tactic used by marketers in nearly every industry. It’s when the specific features and details of your product or service are included in one over-arching price rather than separated out. 

AutoGrow, for example, includes Copywriting, Quality Assurance, Graphic Design, Strategy Sessions, and Ad Management in all of our monthly packages of our Done-For-You sales funnel service without calling out the individual costs of each. 

In addition to this saving us a heck of a lot of time pricing each (after all, each is 100% integral to delivering a polished and high-converting end product), it also makes it easier to get buy-in from clients. 

Why? 

Because bundling actually triggers fewer pain points than seeing the costs of each feature. Instead of 5 price tags, clients only see 1. And for many, that’s a much easier pill to swallow.

Conclusion

Upselling is one of the best ways to increase the AOV and CLV of your audience. And at the same time, incorporating upselling/cross-selling into your business is actually more cost-effective than spending money on bringing in new customers. 

If your interest is piqued and you’re looking to start upselling (and honestly, why wouldn’t you be), there are 7 things in particular you can do to make it more successful…

  • ALWAYS Add Value
  • NEVER Make It Meaningless
  • ALWAYS Add Upsells During Checkout
  • NEVER Make Their Prices Disproportionate
  • ALWAYS Follow Up With Emails (Seriously… ALWAYS)
  • NEVER Resort To Sneaky Tactics
  • ALWAYS Try To Bundle Your Upsells When You Can

And if you do all of those, you’re sure to see a hefty bump in your bottom line thanks to your upselling efforts. 

How has upselling improved your business? What techniques, in particular, have you used that have gotten you results? 

Let us know in the comments below. 

And as always…

Keep funnelin’, stay focused,

Alex T.

Read more