If you are running an online store, you may have tried cross-selling and up-selling your products. In this guide, we explain some of the best ways to create an upsell funnel that helps increase your revenue.
An upsell funnel is a type of mini sales funnel that helps in culminating with the upsell. An upsell funnel looks like a lead magnet where you offer the potential customers a lead magnet in exchange for their email addresses.
It can also describe a premium product where you offer a better quality product to your potential customer that addresses the same kind of problem the lead magnet provides in exchange for more values.
Finally, when the potential customer decides to buy the premium product, you offer them an upsell that leaves an upgraded version.
Using the upselling technique, you will learn to generate unlimited leads,build your first sales funnel, and you will be able to launch it to reach out to the mass.
Upsell funnels are used in the value ladder sales funnel so that every product can have its own upsell.
You might often wonder whether it is essential to have an upsell funnel to build a sustainable online business, but implementing upselling techniques might help you to improve your bottom line.
Here are some ways to help you increase your revenue.
Implementing an upsell funnel can help you increase the average order value (AOV)
It is a very effective way to increase revenue by using upselling to increase the average order value.
When you offer a product to your potential customers, some will be willing to buy that product.
Still, when you provide a product for your potential customers and then decide to follow the upsell technique, a few will be willing to go with the upsell option.
As upselling is an expensive approach, it results in additional revenue that you might not have collected otherwise.
Following the upsell techniques can increase customer's lifetime value (CLV)
Another positive effect that upselling has on revenue is that it helps increase the customer lifeline value.
When the potential customer buys the upsell product instead of buying the original version of the product, it automatically increases the lifetime value.
There is an interesting fact in the upselling technique that is when you upsell a product getting to yes from the customer, then it means:
This theory shows that the customer buying the upsell product is willing to purchase from you again, compared to someone who purchased the original version.
Hence, this indicates that upselling affects customer lifeline value and ripples the entire sales funnel system.
The method of upselling can increase brand loyalty.
Having brand loyalty is very important as it is cheap to keep an existing customer than to get a new one.
It is a believed principle that the more someone invests in your brand, the more the
customers are loyal to it due to the following reasons:
Hence this is the reason why you would prefer to increase customer loyalty in your brand in every way possible.
How upselling shows that increasing the investment has a psychological effect.
As the process depicts, upselling is a great way to increase revenue, and it also has a psychological effect on the customer.
Hence the customer who has bought the upsell tends to:
Conclusion:
An upsell funnel is likely to increase the average order value, customer lifetime value, and brand loyalty. As a result, your revenue will increase through an upsell funnel.
