Maximize your website’s sales potential with strategic downselling techniques outlined in this comprehensive guide. Discover how offering lower-priced alternatives can convert hesitant prospects into loyal customers, boost your conversion rates, and increase overall revenue. Dive into the psychology behind downselling, explore proven tactics, and examine real-world examples across various industries. Learn how to craft compelling downsell offers, effectively integrate them into your sales funnel, and avoid common pitfalls. Whether you operate an e-commerce store, offer online courses, or provide professional services, this article provides actionable insights and strategies to help you implement downselling techniques that enhance customer satisfaction and drive sustained business growth.
Are you maximizing your website's revenue potential? A critical part of optimizing your online sales is implementing strategic downselling techniques.
If you're not familiar with downselling, it's the practice of offering your website visitors a less expensive alternative to a product or service they were initially interested in but decided not to purchase. It's typically employed after a prospect declines an initial offer or upsell attempt.
While upselling encourages customers to purchase a premium product, service, or upgrade, downselling provides a budget-friendly option to convert hesitant prospects into paying customers. When executed effectively, downselling captures otherwise lost sales, boosts customer retention, and maximizes the value of each website visitor.
In this comprehensive guide, we'll dive deep into proven downselling tactics that can substantially increase your website conversions and overall sales revenue. We'll cover real-world examples, key strategies for effective downsells, and how to seamlessly integrate downsells into your sales funnel. By the end, you'll have a solid action plan to start leveraging the power of downselling in your own online business.
Before diving into specific tactics, it's essential to establish a clear understanding of what downselling entails. Downselling is a sales technique where you present a lower-cost product or service to a prospect after they have declined your primary, more expensive offer. The primary objective is to still capture some of the prospect's business, even if it's not at the initially proposed price point.
Imagine you sell online fitness coaching programs. Your flagship offer is a comprehensive 12-month personalized training and nutrition program priced at $1,200. When pitching this to a potential client, you encounter some price resistance. They express interest in getting fit but can't quite justify the $1,200 investment at this time.
Instead of letting this prospect slip away empty-handed, you downsell them by offering a 3-month "Jumpstart" version of your program for $400. This downsell still helps them kickstart their fitness journey and achieve great results but at a more manageable entry price point. It's a win for them to get started, and a win for you to gain a customer who may eventually upgrade later.
Other common examples of downselling include:
The essence of downselling is to present an attractive, lower-investment option that still provides value, ensuring that you don't lose the sale entirely.
At first glance, downselling may seem counterintuitive. Why present a cheaper option when your goal is to maximize sales? However, downselling leverages powerful psychological principles that make it highly effective:
Not every prospect is ready to go "all-in" on a high-ticket offer right away, even if they desire the end result you provide. Downselling meets the customer where they are currently by offering a lower-risk entry point. This builds trust and makes them more receptive to bigger purchases down the road.
Downselling removes barriers holding prospects back from buying, primarily price. Presenting a downsell reduces purchase friction by shrinking the magnitude of their decision. A $100 offer requires much less deliberation than a $1,000 one. By lowering the mental hurdle to buy, downselling greases the sales wheels.
Getting prospects in the habit of saying "yes" works in your favor. Downselling creates an opportunity for a "yes" that may have otherwise been a "no" to your primary offer. Once someone says "yes" to you once, they are psychologically more inclined to keep saying "yes" to future offers. Downselling gets your foot in the door.
Without a downsell, prospects are faced with a binary choice—take your main offer or leave empty-handed. This "all-or-nothing" ultimatum will inevitably cause you to lose out on a significant chunk of potential buyers not ready for that decision. A downsell creates an attractive middle ground that prevents you from leaving good money on the table.
The psychological principle of commitment and consistency states that people like to remain steadfast in their decisions. Once someone commits to something, they are more likely to take actions that are aligned with that initial commitment. In downselling, when a prospect says "yes" to your downsell offer, they are committing to doing business with you. This makes them more likely to stick with that decision by completing the purchase, engaging with your product/service, and considering additional purchases in the future that are consistent with being your customer.
By understanding and leveraging these psychological principles, downselling becomes a powerful tool in your sales arsenal, allowing you to maximize conversions and revenue even from hesitant prospects.
To create effective downsells, it's crucial to first understand the psychology behind why a customer decides not to purchase your main offer. Identifying and addressing these motivations allows you to tailor your downsell offers to meet specific concerns, thereby increasing the likelihood of conversion.
By identifying these pain points, you can design downsell offers that directly mitigate these concerns. For instance:
The key is to present the downsell as a more affordable or streamlined alternative that still offers strong value. The customer should feel they are getting a great deal, even if it's not the full package. This approach not only salvages the sale but also builds goodwill, potentially leading to future upsells.
Example: If you offer a comprehensive online course on email marketing for $497, a good downsell could be a "lite" version priced at $197. This version could exclude some advanced modules and bonus materials, making it an attractive option for budget-conscious customers.
Now that we understand the psychological why behind downselling, let's explore the tactical how. Here are four essential strategies for creating downsells that maximize conversions:
Your downsell should not be a watered-down version of your initial offer. While it should have a lower price point, it must still deliver clear, concrete value to the customer.
Avoid the common trap of simply stripping away features or benefits to create a bare-bones downsell. Instead, thoughtfully design a downsell that provides an easier entry point while still solving a genuine customer problem.
For instance, if your main product is a year-long fitness coaching program, your downsell could be a 30-day nutrition plan. Though it's a shorter commitment, it still offers substantial value by helping customers adopt healthy eating habits.
Remember, the objective of a downsell is not to make a quick buck but to deliver value and begin a relationship with the customer.
Pricing your downsell requires a balance. It must be priced significantly lower than your initial offer to reduce purchasing friction. However, it shouldn't be priced so low that it degrades your product's perceived value or attracts low-quality customers.
A good rule of thumb is to price your downsell between 40-70% less than your main offer. So if your primary product is $200, your downsell would be in the $60 - $120 range.
That said, optimal downsell pricing depends on factors like your industry, target market, and the nature of your product. High-ticket items can often sustain steeper downsell discounts, while lower-priced products may have a narrower range.
Testing is key to determine what downsell price point works best for your unique offer and audience.
How you frame your downsell is crucial to its success. Positioning your downsell as a standalone product without reference to your primary offer often falls flat. Instead, present your downsell as an alternative or supplement to your main offer.
You could frame it as a more budget-friendly option, a lower-commitment starting point, or a specialized product that complements your flagship offer.
Let's say your main product is a comprehensive home study course for aspiring writers. Your downsell could be positioned as:
Tying your downsell to your flagship product leverages the principle of "commitment and consistency" mentioned earlier and makes the purchase feel like a logical next step.
When you present your downsell is just as important as how you present it. The most common downsell timing is immediately after a prospect declines your initial offer.
This could be after they exit your sales page, abandon their shopping cart, or say "no thanks" to your main offer on a live sales call. Striking while the iron is hot allows you to capitalize on the prospect's peak interest and engagement.
However, downselling isn't a one-and-done tactic. You can also use delayed downselling to re-engage prospects.
For example, if a prospect abandons their cart, you could send a downsell offer via email 24 hours later. Or if they decline your primary offer on a sales call, you could have a salesperson reach out several days later with a special downsell deal.
By providing multiple opportunities to downsell, you give hesitant prospects several chances to convert while keeping your brand top-of-mind.
Determining the right downsell offer requires a deep understanding of your product lineup and customer needs. While the most common approach is offering a lower-priced version of your main product, there are several other creative possibilities to consider.
1) Lower-Priced Version of the Main Product: This is the most straightforward approach. Offer a scaled-down version of your main product with fewer features or benefits.
2) Smaller Quantity or Usage:
3) Entry-Level Version: Provide an entry-level or basic version of your core offer. Think of it as the economy model compared to a premium version.
4) Different Format: Offer a different format of your main product.
5) Solve a Specific Problem: Focus the downsell on solving a specific problem rather than offering a comprehensive solution. This can attract customers who are looking for targeted solutions without additional fluff.
6) DIY or Partial Solution: Offer a partial or do-it-yourself option.
It's vital that your downsell aligns with your main offer without cannibalizing it. The downsell should be positioned as a step down but still leave room for future upsells. Buyers should feel they're getting a deal without the downsell overshadowing the main offer.
Example:
If your main product is a 12-month membership program with extensive resources and coaching, your downsell could be a 3-month plan that offers the essential benefits at a lower cost and time commitment.
By carefully selecting what to offer as a downsell, you can create compelling alternatives that resonate with your audience and capture sales that might otherwise be lost.
Pricing is a critical component of any downsell strategy. The price must be low enough to be attractive but high enough to maintain profitability. Here are key considerations and strategies for pricing your downsell effectively.
As a rule of thumb, most downsells are priced at 40-60% less than the initial offer.
Example:
If your main product is $500, the downsell would likely be in the $200-$300 range. If the original offer was $100, the downsell would be around $40-$60.
While it's important to keep the downsell price lower, ensure that it remains profitable. However, the incremental sales volume from the downsell can offset the lower price, leading to overall increased revenue.
Strategy: Focus on marginal profit rather than absolute profit per sale. A smaller profit per sale can be acceptable if the downsell significantly increases the total number of sales.
Consider your overall product ladder when setting the downsell price. If you have multiple products at increasing price points, position the downsell as a step down but still leave room for future upsells.
Example:
This tiered approach accommodates a broader range of price sensitivities and buying preferences.
Your specific market and clientele will influence your downsell pricing strategy.
Always split test different price points to determine what maximizes both conversions and profits. Use A/B testing to experiment with various price points and analyze which one performs best with your audience.
Testing Variables:
Incorporate psychological pricing strategies to make your downsell more appealing.
Example:
Present a downsell as "$197 (usually $497)" to highlight the savings.
Before revealing your downsell price, you can "anchor" it against a much higher price to make it seem like an even better deal.
Example:
"Normally, the Email Jump-Start Kit sells for $497. But for the next 20 minutes only, we're slashing the price to just $197 as a one-time special offer!"
This strategy enhances the perceived value of the downsell by contrasting it with a significantly higher price point.
If your business offers multiple products at varying price points, ensure that your downsell is positioned appropriately within this ladder. This maintains the attractiveness of higher-tier products while providing accessible options for price-sensitive customers.
Example:
This structured approach allows customers to choose based on their current needs and budget, increasing the likelihood of capturing sales across different segments.
While the goal is to make the downsell offer affordable, it's crucial to maintain a balance between affordability and profitability. Ensure that the downsell price covers your costs and contributes to your overall revenue goals.
Example:
If your main product is $1,000 with a profit margin of $300, pricing the downsell at $400 can still provide a healthy profit margin, especially if the downsell can recover 10-20% of lost sales.
Consider implementing dynamic pricing strategies where the downsell price can adjust based on real-time data and customer behavior. This flexibility allows you to optimize pricing for maximum conversions and profitability continually.
Example:
If data shows that a lower downsell price of $350 yields a higher conversion rate than $400, you can dynamically adjust the price to align with customer preferences.
By strategically pricing your downsell offers, you balance affordability with profitability, ensuring that your downsell tactics effectively contribute to your overall revenue goals.
Once you've decided what to offer and set a strategic price, the next step is to craft and present your downsell offers in a way that maximizes their effectiveness. The presentation of your downsell is just as crucial as the offer itself, as it determines how the customer perceives and engages with the offer.
For a downsell to be effective, it needs to be positioned as a highly attractive, no-brainer alternative to your primary offer. Here are key elements to consider when crafting your downsell offers:
Example:
If you sell an online course teaching people how to start an e-commerce business, your main offer is a comprehensive 8-week live coaching program for $2,000. An effective downsell could be a self-study version of the course, with just the video lessons and resources, for $500.
This downsell is strategically crafted because:
A big key to effective downselling is making it as easy and frictionless as possible for people to take you up on the downsell offer. The best way to do this is by implementing 1-click downsell offers immediately after someone declines your main offer.
How It Works:
Benefits:
Example:
You sell software that helps businesses manage their social media. Your main offer is an annual subscription to your premium plan for $500/year. When a prospect clicks away from this offer without purchasing, you can immediately present a downsell pop-up offering a single-channel version of your software for just $20/month, which they can access with one click.
By reducing the commitment from an annual contract to a month-to-month option at a lower price point, while enabling an instant purchase, you'll capture many sales that would have otherwise disappeared.
Downselling can be a powerful tool to re-engage prospects who initially showed interest in your product/service but disappeared or went cold somewhere along the sales process.
Example:
You are a business coach offering a high-ticket group coaching program. You have a qualified prospect who seemed excited during a discovery call but, after sending them the info and contract for your $5,000 coaching package, you never hear back, and they go silent.
Instead of writing this prospect off, you can revive the opportunity with a downsell. Reach back out and acknowledge that the original coaching program might not be the right fit for them at this time, but present a downsell alternative. This could be a $500 "quick start" coaching intensive that includes a 1-day virtual VIP session and 30 days of email support, or a $97/month "fundamentals" program that includes group coaching calls and training resources.
By doing this, you can "save" lost prospects and turn them into buyers. Once they experience a taste of the results you provide through the downsell, they are more likely to eventually take you up on the higher-ticket offer later.
Behavioral segmentation is a marketing strategy that groups prospects based on their actions and behaviors when engaging with your brand. You can leverage this to present highly targeted, relevant downsell offers.
Example:
You sell a subscription-based meal planning app. You notice that a segment of your email list clicked through to your sales page for the annual plan but never completed checkout, indicating potential interest but hesitation at the price/commitment.
You can then follow up with this specific segment, via email or retargeted ads, with a downsell offer for a quarterly plan at a lower price point. Because the downsell is based on their behavior of being interested in your offer but not purchasing, it will come across as highly relevant and increase conversion rates.
Other Ways to Leverage Behavioral Segmentation for Downsells:
By segmenting your downsell offers based on prospect behavior, you can maximize their relevance and effectiveness, ensuring that each offer resonates with the specific needs and preferences of your audience.
While downsells are typically presented as an alternative after a prospect declines your main offer, you can also strategically leverage them as an entry point to your higher-ticket products/services using the foot-in-the-door technique.
Foot-in-the-Door Technique:This is a persuasion method where you start by getting someone to agree to a small request before presenting your larger ask. In the context of downselling, this means using your downsell offer as the initial small request, with the goal of eventually converting them to your main offer after they experience a taste of your value.
Example:
You are a web designer who offers full website design packages starting at $10,000. To get more qualified leads in your pipeline, you decide to create a $500 "Website Audit" downsell offer. The website audit is an entry-level service where you review a prospect's current site and provide a detailed report of suggestions to improve design, user experience, and conversions. It's a low-investment way for them to get expert insights from you and quick wins for their website.
After delivering the audit, you can then pitch your $10,000 design services as the natural next step, positioned as the way to fully implement your suggestions and achieve even better results. Because the prospect has already experienced your expertise via the downsell audit and you've established trust, they are more likely to take you up on the bigger offer.
Other Applications of the Foot-in-the-Door Downsell Approach:
By using strategic downsells to get your foot in the door, you open up more opportunities to convert prospects to your primary offers after demonstrating your value.
Once you've crafted an irresistible downsell offer and set an optimal price, the next step is to present it effectively on your website. Your downsell page should be persuasive, concise, and strategically designed to convert visitors into customers.
Start by reminding the customer of the key benefits of your main product that they are passing up. This can stir up some light Fear of Missing Out (FOMO).
Example:
"Wait! Before you go... I know the Email Elite program wasn't right for you today. And that's okay. But I'd hate to see you miss out on all the list growth and email marketing profits we talked about..."
Pivot to introducing your downsell as the ideal alternative tailored to their current situation. Position it as a way to still achieve great results, albeit not as swiftly or comprehensively as the main offer.
Example:
"That's why I've put together the Email Jump-Start Kit. It's a condensed version of the full program that will still help you grow your list and get more email sales... at a fraction of the price."
Provide a clear and specific breakdown of what the customer will receive with the downsell. Focus on the value and results rather than just deliverables. Highlight how it differs from the main offer.
Example:
Here's what you'll get with the Email Jump-Start Kit:
Present the downsell price in a way that emphasizes the savings compared to the main offer. Reinforce the perceived value by justifying the price reduction.
Example:
"The complete Email Elite program, including all the coaching and advanced training, is $997. But you can get the Email Jump-Start Kit today for just $397. That's 60% off for all the core list building and email profit strategies."
Create a sense of urgency to encourage immediate action. This can be achieved through countdown timers, limited-time offers, or stating that the discounted price is only available on that page.
Example:
"To be completely transparent, this special $397 price is only available right now, on this page. My system will automatically revert it to the regular $797 price if you click away or refresh. So if you want to grow your email list and profits on a budget, now's the time!"
End with a strong CTA that clearly instructs the customer on what to do next. Reinforce the risk-free nature of the purchase by mentioning guarantees or return policies.
Example:
"Yes! Give me the Email Jump-Start Kit for just $397! I understand it's backed by your 30-day money-back guarantee."
Here's a sample structure for a downsell page:
Example:
Headline: "Missed Out on the Email Elite Program?"
Subheadline: "Don't worry—here's a more affordable way to boost your email marketing."
Problem Reminder:
"I understand that committing to a comprehensive program can be daunting. You might be unsure about investing $997 right now."
Solution Introduction:
"Introducing the Email Jump-Start Kit—a streamlined version designed to deliver core strategies without the hefty price tag."
Offer Details:
Price Reveal:
"Originally valued at $797, get the Email Jump-Start Kit for only $397 today!"
Scarcity Element:
"This special price is available exclusively on this page and won't last long. Once you leave, the offer disappears."
CTA Button:
"Yes! I Want the Email Jump-Start Kit for $397"
Use A/B testing to experiment with different elements of your downsell page. Test various headlines, benefit bullet points, price points, and CTA placements to determine what resonates best with your audience. Analyze the data to identify trends and optimize your page for higher conversions.
Testing Strategies:
By continuously testing and optimizing your downsell page, you can refine your approach to maximize conversions and revenue from your downsell offers.
Downsells don't have to be confined to a single web page immediately after the initial offer. Integrating downsell strategies into your email marketing campaigns can extend your reach and provide multiple touchpoints for converting hesitant customers.
For customers who decline your main product, you can add them to a dedicated email sequence that nurtures the relationship and introduces your downsell offer. This approach allows you to engage with them over time, increasing the chances of conversion.
Sample Downsell Email Sequence:
Email 1: Acknowledgment and Value Offering (Immediately After Declining)
Example:
Subject: Sorry to See You Go – Here’s Something Valuable for You
Hi [Name],
I noticed you decided not to proceed with the Email Elite program. No worries! I completely understand that it might not be the right time. As a token of appreciation, here's a free guide on '5 Quick Email Marketing Tips to Boost Your Engagement.' I hope you find it helpful!
Email 2: Benefit Reminder and Tease of Downsell (Next Day)
Example:
Subject: Don't Miss Out on Growing Your Email List
Hi [Name],
I wanted to remind you of the incredible benefits the Email Elite program offers—like mastering list growth and increasing your email sales. If the full program feels like too big a step, keep an eye out for something else that might suit your needs better."
Email 3: Official Downsell Introduction (Day 3)
Example:
Subject: Special Offer: Email Jump-Start Kit Just for You
Hi [Name],
As promised, I have something special for you. Introducing the Email Jump-Start Kit—a streamlined version of our comprehensive program designed to help you grow your email list and boost sales at a more affordable price. Get started today for just $397 and kickstart your email marketing journey!
Email 4: Addressing Common Questions (Day 5)
Example:
Subject: Have Questions About the Email Jump-Start Kit?
Hi [Name],
I understand you might have questions about the Email Jump-Start Kit. Here are some common queries answered:
Q: What exactly is included?A: The kit includes a 3-part video course, high-converting email templates, and a 90-day marketing plan.
Q: How is this different from the main program?A: While it doesn't include live coaching, it provides all the essential tools you need to get started effectively.
Don’t just take my word for it—here’s what one of our clients achieved: [Insert Testimonial]
Ready to take the next step? [Link to Downsell Offer]
Email 5: Final Chance and Urgency (Day 7)
Example:
Subject: Last Chance to Grab the Email Jump-Start Kit at $397!
Hi [Name],
This is your final reminder that the special price for the Email Jump-Start Kit is ending soon. Don’t miss out on this opportunity to boost your email marketing efforts at a fraction of the cost.
Imagine where your email list could be in just 90 days with the right strategies in place. Take action now and transform your email marketing!
[Link to Downsell Offer]
Best regards,[Your Name]
By integrating downsell strategies into your email marketing campaigns, you can extend your reach and provide multiple opportunities to convert hesitant customers, thereby maximizing your sales potential.
Once you've established a solid foundation with your basic downsell tactics, you can explore more advanced strategies to further enhance your conversion rates and revenue. These advanced tactics involve deeper personalization, strategic bundling, and leveraging behavioral data to create highly targeted downsell offers.
Leverage customer data to create personalized downsell offers that resonate more deeply with individual customers.
Strategies:
Example:
If a customer has previously purchased high-end courses, offer them an exclusive downsell with additional perks, such as extended support or bonus materials, at a slightly reduced price.
Add urgency and additional value by offering a limited-time bonus for taking the downsell.
Strategies:
Example:
"Purchase the Email Jump-Start Kit within the next 15 minutes and receive an exclusive set of high-converting email templates valued at $100 absolutely free!"
Use price anchoring to make the downsell price appear even more attractive by contrasting it with a much higher price.
Strategies:
Example:
"Normally, the Email Jump-Start Kit sells for $497. But for the next 20 minutes only, we're slashing the price to just $197 as a one-time special offer!"
For membership or recurring revenue products, offering a free trial can be an effective downsell strategy. The goal is to get the customer in the door to experience your product firsthand, increasing the likelihood of retention and future upsells.
Strategies:
Example:
"Not ready to commit to our premium coaching program? Try it out for free for 30 days and experience the benefits firsthand before making a decision."
Position your downsell as a special bundle that includes additional complementary products or services, thereby increasing its perceived value.
Strategies:
Example:
"Upgrade to the Email Jump-Start Kit and receive a bonus ebook on advanced list-building strategies, along with exclusive access to our private Facebook group for ongoing support—all for just $197!"
Segment your audience based on various criteria such as behavior, preferences, or engagement levels to deliver more targeted and relevant downsell offers.
Strategies:
Example:
Customers who spent more time on your premium offer page without purchasing could receive a downsell that addresses their specific interests or hesitations.
Enhance the scarcity and urgency elements of your downsell offers to drive quicker decision-making.
Strategies:
Example:
"Only 20 Email Jump-Start Kits are available at this special price. Once they're gone, the offer disappears!"
Incorporate social proof and testimonials specific to the downsell offer to build trust and demonstrate its effectiveness.
Strategies:
Example:
"Here's what Sarah achieved with the Email Jump-Start Kit: 'Within two weeks, I saw a 25% increase in my email open rates and a significant boost in sales!'"
Use interactive elements on your downsell page to engage visitors and make the offer more compelling.
Strategies:
Example:
"Not sure if the Email Jump-Start Kit is right for you? Take our quick assessment to find out how it can best meet your email marketing needs."
Use retargeting ads to bring back visitors who declined the main offer and present them with your downsell.
Strategies:
Example:
After declining the main offer, a customer might see a Facebook ad promoting the Email Jump-Start Kit with a special discount code.
By implementing these advanced downsell strategies, you can create highly targeted, personalized offers that resonate with your audience, increasing your conversion rates and overall revenue.
To ensure your downsell strategy is effective, it's essential to track key metrics and continuously optimize your funnel based on data-driven insights.
1) Downsell Offer Click-Through Rate (CTR)
2) Downsell Conversion Rate
3) Earnings Per Downsell Visitor (EPDV)
4) Downsell Retention/Refund Rate
5) Main Offer Cannibalization Rate
1) A/B Testing
2) Customer Feedback
3) Iterative Improvements
4) Segmentation Refinement
5) Enhanced Follow-Up
6) Improving Sales Copy
7) Visual Enhancements
Optimization is an ongoing process. Regularly review your metrics, stay updated with industry best practices, and remain open to experimenting with new strategies. Embrace a culture of continuous improvement to ensure your downsell tactics remain effective and aligned with evolving customer needs.
By diligently measuring and optimizing your downsell funnel, you can ensure that your downselling strategies continue to drive conversions and contribute positively to your overall revenue.
To better understand how downsell tactics can be applied across different industries, let's explore some real-world examples. These examples illustrate how businesses tailor their downsell offers to meet the specific needs and preferences of their target audiences.
Main Offer:
Downsell Offer:
Rationale:The downsell offers essential content for those who are interested in SEO but may find the full course too expensive or time-consuming. By providing foundational knowledge, it serves as a gateway to the more comprehensive program.
Main Offer:
Downsell Offer:
Rationale:The downsell caters to customers who are interested in the blender but are hesitant about the higher price. By offering a functional base model at a lower price, the store retains the sale and keeps the customer engaged.
Main Offer:
Downsell Offer:
Rationale:The downsell provides a more affordable option for smaller teams or individual users who may not need the extensive features of the premium plan. It ensures that the company still gains a customer who can potentially upgrade in the future.
Main Offer:
Downsell Offer:
Rationale:The downsell focuses on a single, essential service for clients who may not be ready to invest in a full branding package. It allows the designer to secure a project and build a relationship that could lead to future upsells.
Main Offer:
Downsell Offer:
Rationale:The downsell offers a shorter-term commitment for those who are interested in fitness but hesitant about a long-term program. It provides immediate results, which can motivate customers to consider the full program in the future.
Main Offer:
Downsell Offer:
Rationale:The downsell caters to startups or businesses looking to test their ideas without the high investment of a full-fledged software solution. It provides a cost-effective way to validate concepts before scaling up.
Main Offer:
Downsell Offer:
Rationale:The downsell offers a more affordable option for couples who may only need coverage for part of the day, such as the ceremony and a portion of the reception, ensuring the photographer still secures a booking.
Main Offer:
Downsell Offer:
Rationale:The downsell focuses on a specific aspect of digital marketing for clients who may not require a full suite of services. It allows the agency to demonstrate expertise in SEO, potentially leading to further engagements.
Main Offer:
Downsell Offer:
Rationale:The downsell provides a lower-cost entry point for individuals interested in some of the offerings without the full suite of premium features. It allows members to experience the value before committing to a higher tier.
Main Offer:
Downsell Offer:
Rationale:The downsell offers a more affordable and less extensive option for businesses looking for targeted advice. It provides immediate value and establishes a foundation for future consulting engagements.
A common misconception is that downsells are merely "lesser" versions of your main offer. However, this isn't always the case. In some instances, downsells can be entirely different products or services that cater to different customer needs or preferences. This approach ensures that the downsell doesn't feel like a downgrade but rather an alternative solution that may better align with the customer's immediate requirements.
To make downsells equally or even more desirable for certain customer segments, focus on offering specific benefits that the main offer doesn't provide. This approach allows you to cater to different customer motivations and preferences effectively.
Main Offer:
Downsell Offer:
Rationale:For customers intimidated by the long-term commitment of a year-long program or those seeking faster results, a 30-day jumpstart can be equally desirable. It offers a quick transformation, allowing them to see tangible results without the extended time commitment.
Main Offer:
Downsell Offer:
Rationale:For clients who need a professional website quickly or have a limited budget, the "Website in a Week" package offers a specific benefit—speed—that the main offer doesn't. This downsell meets their immediate needs effectively, making it a desirable option.
Main Offer:
Downsell Offer:
Rationale:The Social Media Blitz Package offers a focused, intensive approach to social media marketing, which may be more aligned with the immediate needs of certain businesses. It provides specific value without feeling like a mere scaled-down version of the comprehensive package.
By creating non-downgrade downsells, you can offer valuable alternatives that cater to different customer segments, enhancing your overall sales strategy without diminishing the value of your main offers.
To get the most out of implementing downselling in your business, keep these best practices in mind:
While your downsell offers will be lower in price than your main offer, it's essential they still deliver tremendous value for the investment. Don't just create watered-down, "lite" versions of your products/services as downsells.
Ensure:
Like any aspect of your marketing and sales, you should consistently test your downsell offers to optimize conversions. One of the most important variables to test is price.
Strategy:
Example:
If your main product is $500, test downsell prices at $250, $200, $150, and $100 to find the optimal balance between conversion rate and revenue per customer. Small tweaks in price can sometimes lead to significant improvements in sales.
Downselling and upselling are two sides of the same coin and work hand-in-hand. Once someone purchases your downsell offer, you can then present them with upsell opportunities to increase their investment and value.
Example:
Imagine you're an e-commerce brand that sells eco-friendly cleaning products. Your main offer is a $100 "Ultimate Green Cleaning Kit" containing your full product lineup. As a downsell, you offer a $20 "Starter" Kit with just your best-selling all-purpose cleaner.
Once someone buys the downsell $20 kit, you can follow up with upsell options like adding your $30 glass cleaner or $40 bathroom scrub set. By "sandwiching" the downsell between your main offer and upsells, you create a value ladder that maximizes revenue from each customer.
One effective way to boost downsell conversions is to limit their availability and create a sense of urgency. When prospects feel they might miss out on a great deal, they are more likely to take immediate action.
Tactics for Applying Urgency to Downselling:
Example:
"This special price is available exclusively on this page and won't last long. Once you leave, the offer disappears."
By making downsells feel like limited-time opportunities, you tap into people's fear of missing out and drive them to act fast. Just be sure to always maintain authenticity and not use false scarcity.
Another interesting way to use downselling is to strategically bundle your downsell product/service with your main offer to increase the perceived value and make purchasing a no-brainer.
How It Works:
Example:
Your main offer is a $500 online course teaching people how to become a freelance writer. Your downsell is a $100 "Quick Start" Guide with templates and scripts to land your first client.
Instead of only presenting the downsell after they decline the main $500 course, you could reframe your main offer as a bundle of the course AND the quick start guide, a $600 total value, for the same $500 price.
By bundling in the downsell, you increase the perceived value of the main offer. Prospects will feel like they are getting an amazing deal for everything included. You can then use urgency to compel action, like making the bundle a limited-time offer before the price increases to the full $600.
Ensure that your downsell offers have a clear and compelling value proposition. The customer should easily understand what they are getting and why it’s beneficial.
Strategies:
The transition between the main offer and the downsell should be smooth and natural. Avoid abrupt changes that might confuse the customer.
Strategies:
Incorporate testimonials, reviews, and case studies specific to the downsell offer to build trust and demonstrate its effectiveness.
Example:
"Here's what Sarah achieved with the Email Jump-Start Kit: 'Within two weeks, I saw a 25% increase in my email open rates and a significant boost in sales!'"
Reduce the perceived risk of taking the downsell offer by providing guarantees or risk reversals.
Strategies:
Example:
"Yes! I Want the Email Jump-Start Kit for $397! I understand it's backed by your 30-day money-back guarantee."
Optimization is an ongoing process. Regularly review your downsell performance metrics, gather customer feedback, and make iterative improvements to enhance effectiveness.
Strategy:
By adhering to these best practices, you can maximize the effectiveness of your downsell tactics, ensuring they contribute significantly to your overall sales and revenue goals.
While downsells are a powerful tool for boosting sales, improper implementation can lead to missed opportunities or even negative customer experiences. Here are some common mistakes to avoid when designing and deploying downsell strategies.
Mistake: Presenting the downsell too early or too late in the sales process can reduce its effectiveness.
Solution: Introduce the downsell immediately after the customer declines the main offer. This ensures that the offer is relevant and top-of-mind when the customer is still considering alternatives.
Mistake: Offering a downsell that is not related to the main product can confuse customers and reduce trust.
Solution: Ensure that the downsell is highly relevant to the main offer. It should address the same or similar customer needs, making it a logical alternative.
Mistake: Creating complex downsell offers with too many options or unclear benefits can overwhelm customers.
Solution: Keep the downsell offer simple and clear. Focus on the core value proposition and ensure that the benefits are easy to understand.
Mistake: Using a one-size-fits-all downsell approach without considering different customer segments can lead to lower conversion rates.
Solution: Segment your audience and tailor downsell offers to different customer groups based on their specific needs, behaviors, and preferences.
Mistake: Failing to follow up with customers who decline the downsell can result in missed opportunities for conversion.
Solution: Implement a follow-up email sequence or retargeting campaigns to continue nurturing these leads and present additional opportunities to convert.
Mistake: Setting the downsell price too high can deter customers from taking advantage of the offer.
Solution: Price the downsell appropriately based on the value provided and the customer’s willingness to pay. Ensure it offers a clear discount compared to the main offer.
Mistake: Setting the downsell price too low can undervalue your product and reduce overall profitability.
Solution: Balance affordability with profitability. Ensure that the downsell price reflects the value provided while still being attractive to price-sensitive customers.
Mistake: Failing to clearly communicate the benefits and value of the downsell can result in low conversion rates.
Solution: Clearly articulate the unique benefits and value proposition of the downsell offer. Use persuasive language to highlight how it meets the customer's needs.
Mistake: Providing too much information or overwhelming details on the downsell page can deter customers from making a purchase.
Solution: Keep the downsell page focused and concise. Highlight the key benefits and features without overloading the customer with unnecessary details.
Mistake: Neglecting to optimize the downsell page for mobile devices can lead to poor user experiences and lost sales.
Solution: Ensure that your downsell pages and email sequences are fully optimized for mobile. Test the user experience across various devices to ensure seamless navigation and purchasing.
Mistake: Implementing a downsell strategy without testing different elements can lead to suboptimal performance.
Solution: Continuously test and iterate your downsell offers, pricing, and sales pages. Use A/B testing and analyze data to refine your approach and improve conversion rates.
Mistake: Not offering sufficient support or answering customer queries related to the downsell can lead to abandoned purchases.
Solution: Provide accessible customer support channels, such as live chat, FAQs, or support emails, to address any questions or concerns customers may have about the downsell offer.
Mistake: Bombarding customers with too many downsell offers can come across as pushy and may deter them from making any purchase.
Solution: Use downsells judiciously. Ensure that each downsell offer is thoughtfully crafted and presented at the right moment without overwhelming the customer.
Mistake: Having inconsistent branding and messaging between your main offer and downsell can confuse customers and reduce trust.
Solution: Maintain consistent branding, tone, and messaging across both your main offer and downsell. Ensure a seamless transition that reinforces your brand identity.
Mistake: Not having a strategy to re-engage customers who accept the downsell can lead to missed opportunities for further upsells.
Solution: Develop a follow-up strategy to engage downsell customers, providing them with additional value and opportunities to upgrade to higher-tier offers in the future.
By avoiding these common mistakes and implementing effective strategies, you can ensure that your downsell tactics contribute positively to your sales and customer relationships.
Downsell tactics are a powerful yet underutilized strategy for increasing your website sales and revenue. By understanding the buyer's mindset, carefully designing relevant and appealing downsell offers, pricing them strategically, and presenting them effectively through compelling sales pages and email sequences, you can capture sales that might otherwise be lost.
In today's competitive e-commerce landscape, every interaction with a customer is an opportunity to drive value. Downsells are that hidden gem in your marketing arsenal, offering a strategic way to maximize conversions and revenue. Embrace the power of downsells, experiment with different strategies, and continually refine your approach based on data and customer feedback. With dedication and strategic implementation, downsell tactics can become a cornerstone of your successful online business.
Here's to your downsell success!
Downselling, when done strategically and authentically, truly is a win-win. The customer wins by getting a product or service that solves their problem or meets their need at a price and commitment level they are comfortable with. You win by making a sale you otherwise would have lost out on entirely.
The key is to make sure your downsell offerings still deliver real value. They should not feel like a bait-and-switch or a watered-down version of your main product. Rather, they should stand on their own as solid offerings that simply provide a different level of depth or breadth compared to your flagship product.
When you get downselling right, it won't even feel like selling. It will feel more like helpfully guiding a customer to the best solution for them. And that's what business is all about in the end—identifying a need and providing an effective solution at a fair value.
So take a look at your current offerings. Are you losing sales because you only have one price point? Are there customers who could benefit from your expertise if only there were a lower commitment level? Consider how you might be able to create a downsell version that still delivers a solid outcome.
Walk through some hypothetical scenarios with a friend or colleague. Pretend you're a customer who is interested in your offering but hesitant to purchase at the listed price. What would a compelling downsell look like? What key components would need to be included for it to feel like a valuable alternative? Brainstorm ways to creatively package your expertise into different downsell formats.
Remember, not every customer is right for your main offering. That's okay. Having strategic downsells in place allows you to still serve these customers in a way that works for them while boosting your bottom line.
Here's a final example to drive home the power of the downsell. Imagine you're a business coach who offers a comprehensive 6-month coaching program for entrepreneurs looking to scale to 7 figures. Your program, which includes weekly 1:1 coaching calls, a private mastermind group, and a suite of templates and tools, is priced at $10,000.
You know your program delivers massive results, but you also know that $10k is a stretch for many small business owners. So, you create a few downsell offers:
With these options, you're able to serve a much broader range of entrepreneurs. Some may start with a downsell offer and upgrade later once they've experienced the value of your coaching. Others may find that a downsell is exactly what they need to get unstuck and make progress.
The beauty of a downsell is that it allows you to meet your customer where they're at. It opens up a conversation and a relationship. It says, "I hear you, I understand your hesitation, and I still want to help. Here's how we can work together in a way that works for you."
So don't be afraid to experiment with downselling. Test out different offers and see what resonates with your audience. Pay attention to where in your sales process people tend to drop off and brainstorm downsell options that could plug those leaks.
Most importantly, always come from a place of service. Your downsells should be crafted with the genuine intention of helping your customer solve their problem and achieve their goals. When you keep that as your north star, you really can't go wrong.
Happy downselling!
I hope this deep dive into downsell tactics has sparked some ideas for how you can apply this powerful strategy in your own business. As you can see, there are many creative ways to approach downselling, from payment plans to bundles to tripwires. The key is to stay focused on delivering real value and meeting your customer where they're at.
Some important things to keep in mind as you craft your downsell strategy:
Downselling, when done well, can be a significant lever for growing your business. It allows you to extend your reach, serve more people, and stabilize your revenue. So give it a try. Think creatively about how you can repackage your expertise into compelling downsell offers. Your future customers (and bank account) will thank you.
By integrating these downsell tactics into your marketing strategy, you not only increase your revenue but also enhance customer satisfaction and loyalty. Downsells offer a second chance to connect with your prospects, providing them with options that fit their current needs and budgets. This approach not only salvages potential sales but also builds a positive relationship with your customers, laying the groundwork for future upsells and long-term business growth.
Here's to your downsell success!
