MBA2703 How To Make More Money With Upsells & Downsells
Episode
15 min
Read time
2 min
Topics
Fundraising & VC, Sales & Revenue, Product & Tech Trends
AI-Generated Summary
Key Takeaways
- ✓Upsell Strategy: Offer additional products after initial purchase commitment when customers are in buying mode—McDonald's combo meals increase average order value by presenting fries and drinks for $4 extra at checkout.
- ✓Downsell Implementation: Present lower-priced alternatives when customers reject main offers—Netflix basic plan retention or $49 course workbooks capture customers who find $200 courses too expensive but still want value.
- ✓One-Click Optimization: Use checkout tools supporting one-click add-ons without re-entering payment information, and track average order value as benchmark—even 10-20% upsell conversion rates can transform total revenue significantly.
What It Covers
Omar Zdenholm explains how to increase revenue through strategic upsells and downsells, offering customers higher-value or lower-priced alternatives at point of purchase without acquiring new customers.
Key Questions Answered
- •Upsell Strategy: Offer additional products after initial purchase commitment when customers are in buying mode—McDonald's combo meals increase average order value by presenting fries and drinks for $4 extra at checkout.
- •Downsell Implementation: Present lower-priced alternatives when customers reject main offers—Netflix basic plan retention or $49 course workbooks capture customers who find $200 courses too expensive but still want value.
- •One-Click Optimization: Use checkout tools supporting one-click add-ons without re-entering payment information, and track average order value as benchmark—even 10-20% upsell conversion rates can transform total revenue significantly.
Notable Moment
Apple's product ecosystem demonstrates non-annoying upsells—customers who love AirPods naturally consider iPads and MacBooks, viewing expanded options as value rather than pressure to spend more money.
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