When engineering add-on/upsell offers, average marketers only consider one objective – increasing average order size.
Savvy marketers, on the other hand, create their add-on/upsell offers — especially for front-end marketing funnels — with three additional objectives in mind.
Increasing average order size is obvious. At the foundation of every add-on/upsell offer used in a marketing funnel is the aim of increasing the average amount of money new customers spend with you.
An increase in average order size allows you to invest more in traffic… and, therefore, invest more in the acquisition of new customers.
However, only considering average order size can very quickly lead to using add-on/upsell offer types that neglect the other three objectives. I’ll give you an example in just a second.
First, let’s cover the three additional objectives — in addition to increasing average order size — of a great add-on/upsell offer.
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Objective #2: Increase the Speed of Customer Indoctrination
Which of your customers do you feel are more likely to purchase something else from you in the near future — the customers who purchase two products from you during their initial transaction, or the customers who purchase only one product from you?
The customers who purchase two products. Correct.
That’s because prior behavior is a good indicator of future behavior. Especially when that prior behavior is recent and/or frequent.
So, then, let me ask you this:
Out of 100 buyers, would you rather have 50 take advantage of your add-on/upsell offer or would you rather have 10 — assuming the impact on average order size was identical?
Meaning, for example:
If you could have 50 customers take advantage of an add-on offer, say, priced at $10… adding an additional $500 of revenue…
Or, you could have 10 customers take advantage of an upsell offer, say, priced at $50… also adding an additional $500 of revenue… which would you choose?
Both have the same impact on average order size. But, which one would you want? Which would be better for your business?
The answer is…
Having more customers take advantage of an add-on/upsell offer.
Why?
Because, simply, it means that more of your new customers have the opportunity to consume more of your products in a shorter period of time. And this “compressed consumption” increases the speed at which trust is built within your relationship.
(For information marketers this impact is even more profound. Because, for every additional upsell offer they take, they’re getting to hear more of your ideas, more of your voice, more of your insights, and more of your expertise. And, the result is faster bonding and positioning in their mind.)
This increased speed of trust and bonding increases speed of readiness for your next offer… and increases the likelihood of that next purchase.
And that’s why the use of a Slack Adjuster — a high-priced upsell offer that appeals to only a tiny segment of customers — should not be used as a primary upsell offer. Because, despite being effective at boosting average order size, it does not fulfill the above objective.
In other words, Objective #1 is all about designing your add-on/upsell offers — at least your primary ones — to have maximum appeal at the right price point so you increase the speed of indoctrination with the most new customers possible.
Make sense?
Good.
For Part #2 of this series – click here.
