Upselling Online – It’s All in the Timing

Some time ago, I posted about my experience with an online company that attempted to upsell page after page of products to me *after* I had entered my credit card number and submitted my order.  While their strategy worked and I did buy one of the upsell products, I found it to be a rather unpleasant experience.

For starters, I was confused.  Once I clicked on that “Add to Order” button, was I was going to be immediately charged for that extra item? Or would I have the opportunity to remove it from the cart before my order was finalized?  Either way, it didn’t give me any time to think it over, research the product, or do a price comparison.

Secondly, I’m not an impulsive buyer.  I rarely make a purchase unless it is well thought out.  And forcing me to go through multiple pages of upsell products in order to get to my order confirmation page just didn’t sit well with me.

This past week, direct response copywriter and marketer Michel Fortin posted his opinion about this method of upselling on his blog and it has sparked some  passionate comments from his readers.  Michel compares it to taking the customer’s order and holding it hostage.  And his wife, Sylvie, actually refers to this as “upsell hell.”

But what’s interesting is that Michel and Sylvie aren’t against upselling.  In fact, they are big proponents of it.  And in all truth, so am I.  The issue isn’t with the upselling itself, but the timing of it.  The Fortin’s and I believe that upsells on the web should occur *before* the customer enters their credit card number and submits their order.  It’s just common courtesy.

On the flip side, our opponents say that they utilize this method because it works.  It allows them to close the initial sale (they’ve already captured the buyer’s credit card number) and it gives them the opportunity to sell more products without the risk of the customer abandoning the shopping cart.  They believe that they are in jeopardy of losing the sale altogether if they offer upsells before the sale is clinched.

While I agree that statistics prove this method works in the short term (as it did with me), more often than not, it ruins any chance of a long-term relationship with that customer.  Overall, it causes distrust and resentment.  Yes, you may get that extra sale or two, but will the customer come back and buy from you again in the future?  Or have you scared them away forever?

Personally, I’d rather profit less from the initial sale with hopes of profiting more in future sales from customers that come back and buy from me time and time again.  And while this is partially because I am committed to running an ethical business, my desire to get repeat customers runs deeper than that.  Let me explain.

Studies have proven over and over that repeat customers:

• Cost less. Snagging a new customer is costly and time consuming.  We all know how expensive advertising is.  But in addition to that, it takes time and effort to get the customer to trust you and make that initial purchase (a good example would be answering pre-purchase questions.)   In contrast, the repeat customer has already bought from you, already trusts you, and is often eager to buy from you again.
• Buy more. Repeat customers will not only come back and buy from you again, but will often buy larger quantities.  This provides you with more sales revenue that didn’t require you to invest in additional advertising.
• Refer others. Referrals have often already made up their mind that they are going to buy from you.  They’ve heard good things about you from someone they likely trust.  They are less skeptical and more open to you than someone who has never bought from you before.  This results in an easier sale, that again, didn’t cost you additional advertising dollars.

As you can see, it’s just good business sense to try to retain your customers. But it doesn’t work when you use in-your-face selling methods such as the upselling technique we’ve been discussing today.

Instead, it’s a process that means treating your customers with dignity and respect.  It begins before they buy from you, continues when they make the purchase, and ends with exceptional customer service.

The next time you are tempted to jump on board the “upsell hell” bandwagon, remember that the effects are long term.  Ask yourself if it is really worth losing customers and ruining your reputation in the process.

Remember, it’s always about the customer.

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