The best time to sell online is when customers already have their credit cards out.
In this case study video I deconstruct a real upselling strategy, showing you how adding a simple upsell process increased sales by 56.3%!!
Watch the video: Website Upselling Case Study on YouTube
A transcript of the video is here:
Hi, this is Will Swayne from Marketing Results which is at www.marketing-results.com.au.
I’ve got a really interesting case study video to share with you today. This case study video is on the power of upselling. In this video, you’ll learn how we increased order page conversion by 39.2% while also simultaneously increasing average transaction value by 12.3% for a net revenue gain of 56.3% by just changing one thing.
As I mentioned this video is on upselling and upselling is basically the “Would You Like Fries With That?” strategy.
The principles to underline this strategy are a couple of things:
- Firstly, when customers are buying, don’t stop selling.
- Secondly, one of the cardinal sins of marketing, I believe, is actually limiting the value that you offer clients. There may be clients among your customer base who would buy more elaborate products or larger products or bigger bundles or products with more features, if you offered them. The fact that you don’t offer them is the reason why they’re not buying them.
So let’s quickly talk about upselling. Well there are a few people in the internet marketing community who are talking about it but very few people who know how to do it. Even fewer can quantify the value of doing it and almost no one is actually doing it. So in this example, I’m going to show you an actual example where you’ll see how to do it and what the potential results can be.
The website you see in front of you is a website called candlemakerscompanion.com which sells primarily a $27.00 e-book on how to create beautiful artisan candles for fun or profit and as you can see from this website, it’s a traditional sort of sales letter style website. There’s a sales letter, there’s a guarantee and then it’s $27.00 and by clicking on this ‘add to cart button’ you then proceed to an order page.
We actually tested two order pages. The first order page in the test looks like this where it says, “Yes! I want my copy of The Candle Maker’s Companion. Get the Candle Maker’s Companion Plus $65 Worth of Bonuses for just $27.”
There’s a number of strategies in evidence there:
- One of them is this sort of affirmation strategy prior to purchase to make it very clear on the value that the client recieves
- Secondly is bonusing – to receive a lot more value than the sticker price.
- One is having an image of the product
- Another one is actually valuing the individual bonuses
- Reiterating the money back guarantee
- Having some privacy assurance messages, credit card and payment logos
- A checkout button or an add to cart, “click here to claim your copy now” buttons
But the key point that I want you to notice here is that there’s only one option which is what most people do. So we tested this original version against a different type of off page which you can see here.
So this page is very similar. It says: “Yes! I want my copy of The Candle Maker’s Companion.” There are two options for you to choose from. Please read below and make your selection. Below there—there are actually two boxes.
Here’s the first box which is identical to the first; adding it to the cart here. And here’s option two which is a bundle: “You can get the Candle Maker’s Companion plus the Handcrafter’s companion for just $17.00 more!” So again it’s adding a lot more value for a nominal increment in price. So it explains the connection between the two products. I’m not going to read it all but I’ll just read the first paragraph.
“The Handcrafter’s Companion is a complementary volume to The Candle Maker’s Companion. It provides you with everything you need to create fragrant bath and body products, for fun or profit!”
Further down, we say that: “The Handcrafter’s Companion is actually sold on its own website for $27.00” with a link so people can verify the value. Then again there’s an affirmation statement to get both products for a very reasonable price of $44.00 with all the bonuses then itemized again and then you go to the checkout.
I’ll show what the checkout looks like; it’s identical for each side of the test. So whether they order the upsell product or the planned product, it will go to this sort of shopping cart page.
Okay so let’s look at the results between these two types of order page.
This is a Google Website Pptimizer which is one of the conversion testing tools we use to help our clients and ourselves increase our conversion results. The blue line is the conversion rate on that original order page. As you can see, these lines change, I’ll talk about that in a second. The orange line is the conversion line right on the page with the upsell.
So you notice that these pages sort of change every time; that is as more data is collected, we get more certainty about the true value of the long-term conversion rate of either option. As we get to the end, we find that on this order page, the conversion rate is 31.6% with the upsell and 22.7% with no upsell, in other words, just offering one option. So that means that of every one hundred people that come to this page and see the upsell; 31 purchase. Of every hundred people that come to the page and they don’t see the upsell, only 23 purchase.
So what does that mean?
That means that with a very high level of confidence, statistically speaking (which is all this stuff is about) there’s an actual conversion improvement of 39.2% by offering the upsell option; simply by offering the upsell option. And there’s also an increase in the transaction value because the upsell is obviously more expensive than the regular product. We actually find that about 19% of orderers choose the upsell and 81% choose the regular product. So that has an increased transaction size of 12.3%.
So, when you combine the increased conversion rate on that page of 39.2% and you also combine that with the increased order value, of another 12.3%, that produces a net revenue gain through this one strategy of 56%, which is pretty substantial. The other thing is that’s just a revenue gain. The cost of traffic remains the same. So in terms of profit, this probably has boosted profit by about 300% or somewhere near that number.
So that’s a working example of how to do upsells on the web. You can do this with an e-commerce product or you can do it with a lead generation scenario. For example, you might offer a free report and on the thank you page of the free report, you then offer people a chance to have a consultation with you or go to the next step in the sale.
I’ll leave it there. I hope that’s been instructive. If you would like to know more about how we can help you implement this sort of strategy on your website, along with enhanced traffic generation and other conversion strategies, then get in touch. Thank you!