top of page

Down-sell: less is more.


From this material, you will learn:

  • Description of downselling.

  • The difference between down-selling, cross-selling, and up-selling.

  • Implementation of downselling.

  • Down-sell tools in internet commerce.

  • Down-sell and re-sell.

The downsell is a sales tool that is undeservedly ignored by many. At first glance, there is no logic in offering the customer something cheaper than their initial request or your assortment. But to mindlessly chase the cost of the goods you sell means that you take away a lot of customers and lose money.

However, you shouldn't resort to downselling right away. Still, your task is to understand customer needs, not just sell expensive or cheap products. In our article, we will tell you how down-selling works in sales, how to implement it, and how to apply it.

Down-sell description.

After assessing the reasons why the potential customer hesitates and does not decide to make a purchase, an attentive consultant will offer a solution that allows the buyer to either purchase a similar product at a lower cost or arrange an installment payment on their original choice. In other words, down-selling helps both parties achieve their goals: the store to make the sale and the customer to purchase the desired product or service.

The essence of downselling is to lower the threshold for making a decision.

  • The buyer does not have enough money - offer to buy the product in installments.

  • The installment option doesn't work - look for a lower-priced counterpart.

  • The client refuses to buy here and now - get his contact information to inform him about the sale.

It is important that the client feel your sincere desire to help. This way, you will not only make a sale but also create favorable conditions for the acquisition of a loyal customer. If you manage to convince a person to buy a budget version of a quality product, he will surely come back to you again. The confidence of the established customer in you is much higher than that of the one who left the store without making a purchase.

The difference between downselling, cross-selling, and upselling.

A simple example will help to understand the difference between these three sales techniques. Let's assume that the visitor to your online store is interested in coffee machines.

Option one: The customer is in no doubt about the choice; has decided on a model and is ready to place an order. In this case, it is appropriate to offer the client a special liquid for descaling or a supply of coffee beans. This is cross-selling. You increase the amount of the check, showing care for the customer and thereby increasing customer’s loyalty.

Option two: The customer looks at a mid-range model, and you show him a slightly more expensive coffee machine with more features. You have to convince the customer that the benefits of the model offered far outweigh the price difference. It's an up-sell, a tool that helps you raise the sale amount and, again, build trust with the customer.

Finally, the third option: the store visitor has been looking at premium coffee machines for a long time but is not ready to buy the product because of the high cost. To keep him on your sales floor and help him buy the desired product, find him the best solution. This could be a coffee machine from a lesser-known brand or with the bare minimum of features. In other words, use the down-sell technique to keep a hesitant customer who doesn't have the right amount of money.

Implementing down-selling.

The effectiveness of downselling will be fully manifested only if you approach the mastery of this technique seriously, studying common techniques and doing some preparatory work. To begin with, you need to:

  • Divide the goods in each category into basic and auxiliary, cheaper goods. To begin with, we offer a basic model. If the price is too high for the buyer, we offer analogues from another manufacturer's less functional products that are not the most recent design.

  • Define the end goal. As a rule, it is to make the sale and keep the customer, but the store can solve other problems with the help of downselling, for example, by selling the backlog of goods from last year's collection.

  • Understand that customers should be treated individually. Some people just need time to think, so you should not rush to offer cheaper counterparts. It is likely that the client will buy the basic version if you draw his attention to the merits of this particular model. Use downselling at the moment when the customer is ready to leave without making a purchase. It is important to show tact and present the alternative product as a worthy substitute for the original choice.

Internet commerce has its own peculiarities in terms of downselling. The user is shown cheaper analogues on two pages:

  1. Product selection. Suggestions in the lower price category are placed on the right or at the bottom.

  2. Ordering. At first glance, this solution may seem illogical because the buyer has already put the goods in the cart and intends to buy them. However, owners of online stores are familiar with the concept of an abandoned cart, when the customer fills it but does not pay, including due to a lack of the necessary amount. By placing downsell items on this page, you can encourage the customer to replace the selected items with similar ones at a lower price.

Down-sell tools in Internet commerce.

outsourced lead generation

Premium goods are not available to everyone, so it would be unwise to bet only on affluent consumers. Down-selling allows you to expand the customer audience, support sales, and acquire loyal customers. This technique is implemented through the use of popular marketing tools:

Promotions, special offers, and discounts.

The opportunity to purchase goods at reduced prices on the eve of major holidays or at the end of the season attracts a large number of customers who could not otherwise afford to buy.

One-time offers.

Send out a one-time great offer to potential customers who never paid for an item they added to their shopping cart.

Comprehensive promotion on the site.

Form a convincing special offer and place it on all the pages of the online store. Increase motivation to buy with daily promotions, make sure the banner is available everywhere: in sections of the catalog, on the product card, and in the cart.

Countdown timer.

Of course, it must be real. Users will quickly expose a fake counter, and the credibility of your site will be seriously undermined.

A unique offer for those who left the online store without making a purchase.

You can't write off customers who never decide to buy a product. Get their contact information before they leave the site. Remember that not everyone will agree to leave an e-mail address to receive your news, but participation in a prize draw will be a good motivation to subscribe.

Sending specials by email.

Once you have the email address, you can continue to work with the potential client. Send him letters with personalized offers based on the contents of the abandoned shopping cart. Perhaps a 10-15% cost reduction will be just what's needed to make the purchase.

According to statistics, 70% of users fill their carts but never pay for the items in them. The reason is most often banal: they do not have enough money. Down-selling helps such people buy the things they need, and you profit from trade and ensure your reputation as an attentive seller.

Down-sell and repeat sales.

High competition characterizes almost every market segment. Entrepreneurs constantly have to find ways to win price wars and still make enough profit.

Let's look back at two business rules that can help with this challenge:

1. Cost per customer.

What did each customer cost you? How much did you spend on advertising, discounts, and gifts for loyal customers?

Example: One of the most popular down-sell tools for retailers is the issuance of savings cards. Let us assume that one card cost you $5 and you gave it to a customer who purchased goods for $1,000. This means that each customer costs you $5. If he has a card from your store, he will come to you, not to competitors who have ignored the possibilities of this marketing tool.

2. Lifetime customer value.

It is important not only to expand your clientele but also to retain existing customers and maintain their loyalty. It's because of them that your success is stable and you always make a lot of money.

Example: The owner of one of two coffee shops next to an office center is thriving, while his competitor is on the verge of survival. The first one provides employees rushing to work with consistently good-quality drinks and gives a 5% discount to regular customers. At the same time, not only does he not lose income, but he constantly increases it because managers come to him and do it every working day for a long time. By selling cheaper, he ends up getting much more than his competitor.

Selling through email marketing is the easiest way with AnyBiz, create email campaign in 5 clicks only and start your selling tomorrow using our tips.

bottom of page