How to down-sell effectively for boosting conversions
You understand the concept of down-selling, but you may be unsure how to apply it to your own marketing strategy. Since other selling techniques like cross-selling and up-selling are so common, many marketers miss out on the opportunity to make more sales with down-selling. This means you may not see too many examples of down-selling applied in real life. Here are a few ideas that will help:
Use Exit-Intent Pop-Ups
Have you visited a website and received a popup offering a discount just as you’re about to leave? That’s called an exit-intent pop-up. It monitors the activity of website visitors, and once the visitor starts making a move to close the tab, it comes up with an attractive offer that could entice them to stay longer. The offer may be anything from discounts to newsletter sign-ups, but you can modify it according to your needs.
Discounts are a popular down-selling technique, but they could result in a huge loss despite the higher number of sales. The idea behind using exit-intent pop-ups for down-selling is that you can selectively choose which people see the discount, instead of giving it to every person who visits your site. After all, some people may want to buy your products even without the discount. This means you’ll only target individuals who are planning to leave your site, in the hopes they’ll take the offer and turn into a paying customer.
How do you know if exit-intent pop-ups work? Several case studies prove that these pop-ups helped websites increase sales and sign-ups. While some websites offered discounts, others offered free eBooks or consultations. So the offer can be customized according to what you need and what your customers would like. Neil Patel, for instance, uses an exit-intent pop-up offering a free cheat sheet for online marketing.
Before implementing exit-intent pop-ups, ensure you target visitors who seem to be truly interested in the product. When monitoring their activity, make sure you look for people who spend some time on your website and check out various features and pricing information. You can filter even further by displaying the pop-up when they intend to leave even with items in their cart.
Create a Value Package
As previously mentioned, offering discounts for your existing products may not be the most viable down-selling solution. If that’s the case, you may want to create a package that costs slightly less than your existing ones. This works especially well for SaaS companies and businesses in the service industry, as you can easily customize the packages by removing certain features for the budget-friendly package.
Scott Hallman produced case studies about the effectiveness of down-selling with value-based packages: By creating a lower-cost coaching service and training program, his company experienced a 125 per cent increase in conversion rate in the first month alone. This is an excellent technique to reach out to potential customers who were previously unable to buy your products because of budget constraints. You’re making the product more accessible for them and encouraging them to make a purchase.
If you’re worried about too many customers going for the value-priced item, highlight the package that yields the highest revenue for you. When visitors land on the pricing page, make sure the high-revenue package is the most prominent and the low-cost package is just another option. You can show them that the high-revenue item is “Recommended” or the “Best Deal,” prompting people to select it. If they can’t afford it, they still have the option of going for the low-cost option.
In an example from Ninja Outreach, the “Small Agency” package is highlighted and also displays how people get 25 per cent off on the annual cost by choosing that package. But there is a more budget-friendly option as well: the “Blogger” package. The features of each package are clearly displayed, showing customers exactly what they get with each option.