Bundles are an integral part of scaling your business.
Join me in this Definitive Guide where we discuss how bundles can take your sales to the next level!!
Upsell Strategy
When using upsells in funnels, we need to have a good strategy for not only where we place them, but also what they are, and also when we decide to pay money to promote them.
The three most common types of upsells are these:
1: Pre-and post-transactional upsells
– these sales occur during the transaction process and often perform the function of allowing somebody to create a bundle by adding ancillary offers to a transaction.
2: Rebuttal upsell’s
– These are bundles that we offer potential customers to overcome objections built around value and price.
3: Buy More Save More
- these are often presented as buy one get one free or buy three get one 50% off etc. the strategy here is to allow for higher volume at a lower margin to occur within single transactions.
Strategically, we generally want to focus on Testing The upsells in the following order:
First, a post-transaction upsell. Trying to extract a greater AOV during a single session after a transaction has already been confirmed.
Second, a pre-transaction upsell. Trying to bump up the value of any particular offer before the final transaction occurs. This can have a direct and negative impact on the conversion rate, so it should not be tested until a post-transaction AOV in the conversion rate benchmark has been established.
Third, the rebuttal upsell. Once we have established a data set of what users are likely to pair together with our offers we can present those commonly occurring pairings as their own unique offers. Often this referral upsell is nothing more than a buy more save more type option.
When we decide to run paid media to rebuttal upsell, we need to have a clearly defined CPA and volume target. We also need to keep in mind that these offers can Justice often be taken by folks who have already purchased once, or a dozen times, or have never bought from us before.
Vertical Integration
The primary difference between a product and a business is the ability to continue a customer journey with more than one transaction. The easiest way to ensure that this happens is to sell complementary products. We can see this as the ketchup next to the hotdogs, socks being sold with jogger pants or sneakers, or even as insurance being sold on a rental car.
It is extraordinarily more difficult to scale a business if you are not built on the back of multiple transactions being a common occurrence among your customer base. Success in scaling often comes as a reflection of an overall percentage of revenue that is accounted for by these additional transactions. Without planning a vertically integrated product or offer strategy, these additional transactions have no force multiplying effect. It becomes just as difficult to make each individual sale, and at that point, you are more of a store than a brand, but even stores are themed around certain product categories that make the items on the shelf vertically integrated.
Market Research
The easiest way to conduct market research for your brands is by doing one of the three following things:
First, we can index our DPA ads and see where our money is being spent outside of our hero products.
Second, we can go to Amazon and see the “frequently bought together“ item suggestions.
Third, we can directly ask our customers what they would like to see from us in addition to the initial buying experience.
Understanding the consumer psychology of your customer base is extraordinarily more complex than just figuring out the right way to make an ad to get somebody to buy from you one time. You need to understand what the customer expects from you as a brand so that you can meet evolving needs, and build a relationship that is more than just transactional.
Either you are a brand-building LTV
Or you are a salesman trying to not fail
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