Do you want Fries with That? The Art of the Upsell.
We’ve all heard it before. You’re hungry and you pop into Mickey D’s for a hamburger. You get to the front of the line and place your order for a Big Mac and a chocolate shake. The cashier asks, “Do you want fries with that?” Well, hm, as a matter of fact, you do want fries. Why not? McDonald’s just made another $1.70 with a simple suggestion. As we interact during our day of buying products and services we are met regularly with a suggestion to add onto what we have already decided to buy. This is a common strategy known in the marketing world as up-selling. Just today while I was at Starbucks ordering my tall House Blend the cashier asked if I wanted to make it a grande for only thirty cents more. Ha! No way. I saved my thirty cents. I was on to him since I was thinking about this newsletter topic.
No matter if you sell jeans at a department store, Tupperware at a home party or products online there are several universal marketing laws. Not everything is similar when you cross over to selling online, but in the realm of marketing with a bit of tweaking and some creativity, there are age old strategies that work very well for salespeople. Up-selling is one of them. The definition of up-selling reads:
“Up-selling is a sales technique whereby a salesman attempts to have the customer purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Up-selling usually involves marketing more profitable services or products, but up-selling can also be simply exposing the customer to other options he or she may not have considered previously.
[click to continue…]
A review by Julie Anna Schultz
The Long Tail; Why the Future of Business is Selling Less for More by Chris Anderson
This book has been sitting on my shelf for some time now. Well, like perhaps two years! Raved about on one of my discussion lists I decided to give it another looksie before selling it.
When I read the book prior I quickly lost interest as the statistical graphs began to appear on page after page. The last few months, however, I have been all about graphs especially when it comes to understanding economics and the nature of the marketplace. This book goes into depth explaining the buying habits of people online and the marketing behind all of that. I recently learned the new edition of The Long Tail is available titled The Longer Tail. I am quite interested in reading a copy of that since the book I am reading is six years old; that’s an eternity on the internet. I suspect the news gets even better for internet retailers.
As I got further in the book (beyond the previous owner’s highlighting) it became very encouraging to see how shifts have changed in our nation’s (and the world’s) buying habits as a whole. No longer are we driven by mass media and hugely sponsored companies dictating to us what our tastes are, how we should feel about a product, and most importantly how we should thin as consumers.
You may be wondering what this has to do with you. Everything as an internet marketer. Whether you sell cars on eBay, rings on Etsy, books on Amazon or baby clothes on your won website you should understand the power in what the people say and the availability of choice never previously offered in our world . Our market is not only global but our product choices are nearly limitless.
This is where The Long Tail comes in. For you quants you know
the front end of the graph is considered to be the head where the majority of buys are — the farther to the right is the tail where the graph drops off. Before the market was in the billions of buyers, that line hitting nearly 100,000 was a huge waste of time for the business owner who spends tons of money on overhead. But for us it can be a perfect number especially if we identify
[click to continue…]