When during a purchase of a flight ticket in an advertising campaign, you are offered to pay extra for choosing a seat, and instead of subscribing to Netflix for a month, choose a subscription for a year – the seller conducts an upsell. According to various estimates, upsell accounts for 15 to 40% of McDonald’s annual revenue.In the article, we revealed what Internet marketing tools to use to sell for a higher price, and also collected high-profile cases of international companies.
Why should you calculate the average check
An average check is how much money a customer spends at a time. It is also an indicator of how your business is doing.
A high check is a reason to praise yourself, because you are doing everything right.
A low check is an indicator that you need to change something.Also, the average check gives a lot of additional useful knowledge:
- About the solvency and loyalty of customers. Having an average check, you can make a portrait of the buyer: what they buy and how much they spend.
- About the effectiveness of sellers. Do they really sell or just issue checks at the checkout.
- About the efficiency of stores. The average check will show which stores are working well and which are lagging far behind.
- About the success of marketing. Whether you expand the range, hold sales and launch promotions – all changes should have a positive impact on the average check. If the check remained the same or decreased due to discounts, you made a mistake somewhere.
- How to build a loyalty program. The average check will tell you how much customers buy without additional incentives, and from what indicator it is worth introducing discounts and bonuses.
How to use upselling to increase the checkUpselling is a sales method in which the seller offers the customer to purchase a more expensive version of the product than he planned. The seller’s task is to fully satisfy the customer’s desire and surpass it. For example, if the customer wanted to eat a scoop of ice cream, a double scoop with chocolate syrup can please him even more. At the same time, the more expensive option should be really better, more profitable, better quality and bring more pleasure. The buyer needs to feel that the additional costs are worth it. We have collected effective ways of upselling.
- Extended warranty
- Discount for subscription
- Increasing the volume
Upselling rulesUpselling is an effective way to increase the check, but the seller risks losing the customer if he insists on a more expensive purchase too bluntly. Here are some rules that will help make upselling less intrusive.
- Don’t raise the check too much. If the customer was going to spend $100, it is unlikely that he will easily agree to a similar purchase for $300. A comfortable increase in cost is about 25%.
- Offer a discount. Upselling always involves a larger check, but if you offer a small discount on a more expensive product, it will be easier to make a purchase decision. A sense of urgency will help to increase the effect of the discount – if you say that the discount is valid for a limited time.
- Offer free delivery of more expensive goods. Free shipping is the engine of trade. 90% of customers admit that free shipping is the main reason why they buy more. Customers feel sorry to pay for shipping if they can get it for free by buying a more expensive product.