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Downsell

Ever had a customer almost make a purchase and then back out at the last second? That's where downselling is a savvy technique that can help you save the sale and win over a new loyal customer. In the eCommerce Glossary, downselling is a smart move that lets you offer a cheaper alternative when someone hesitates to buy. This can help ease their concerns and turn a potential loss into a win. In this article, we'll explain how downselling works, why it's worth your time, and how you can use it in your business.

And if you're looking for a tool to help make this easier, check out Instant's Shopify product page builder. It's designed to help you set up efficient downselling strategies and more.

What is a Downsell?

Downselling offers a lower-priced alternative when a customer decides against a more expensive item. For example, if a customer loves a handbag but balks at the price, you can suggest a similar, more affordable option. You're tackling that cost head-on, which might lead to fewer abandoned carts. Why? You're meeting the customer's budget needs without slashing your primary product’s price and risking a loss.

Why use downselling?

Think about those moments when a customer hesitates to make a purchase. You can sense the resistance. Rather than trying to convince them to spend more, downselling lets you work with their budget. It's like saying, “I get it.” Here's something that won't break the bank. This tactic keeps the conversation going, rather than letting it end with a click on the exit button. It’s not just about a cheaper product; it’s about maintaining the relationship.

When does downselling make sense?

Timing is everything. Downselling works best when a customer is about to bounce. You see it in their behavior, maybe they've added an item to their cart and left it to gather dust. Offering a downsell at this point can reignite their interest. It’s about responding to their needs in real time, not hoping they’ll return later. You’re not just offering a discount; you’re offering a solution.

Benefits of downselling

Downselling might sound like a step back, but it can help increase sales. Customers love a good deal. By offering lower-priced alternatives, you can capture the attention of deal-seekers who might otherwise walk away. Someone may be on the fence about that high-end massage service. Offer a shorter or simpler option, and suddenly, the sale is made. This strategy can keep products moving and cash flowing, which is crucial when times are tough.

Attracting new customers

Downselling isn’t just about making a sale. It’s about drawing in new customers who might not have considered your business. A lower price point can make your products or services accessible to a broader audience. Once they’re in the door, you can show them what else you offer. It’s a great way to expand your customer base without a massive marketing push. People who couldn’t afford your full-price offerings might become your most loyal fans when you give them a chance to start small.

Building loyalty through understanding

By downselling, you show customers that you understand their financial limits. You’re not just trying to make a quick buck. You say, “We’re here for you, even when money’s tight.” That kind of empathy can go a long way in building loyalty. Customers who feel understood and respected are likelier to return, even when their budgets increase. They’ll remember you were willing to work with them when times were tough.

Implementing downselling in eCommerce

Identify where customers hesitate or abandon their carts. Look at checkout pages and product pages with high bounce rates. This is where you’ll want to step in with a downsell. Try using exit-intent popups or targeted emails to offer discounts or suggest a more affordable alternative. This gentle nudge can convert indecisive shoppers into paying customers.

Offer a Simpler Version

Sometimes, less is more. If a shopper is eyeing a high-end product but doesn’t buy, recommend a basic version with fewer features. This strategy can be very effective. You still capture the sale, and the customer gets a better product that fits their budget. Brands often use open-box or refurbished items for this technique. It’s a way to appeal to budget-conscious shoppers without devaluing your premium offerings.

Use Free Trials and Bonus Gifts

Free trials or small bonuses can be robust downselling tools. If you’re selling subscriptions or digital services, offering a free trial lets customers experience the product before committing. For physical goods, a bonus like free accessories can enhance perceived value. It’s an effective way to make the purchase more appealing.

Automate and Test for Success

Automating the whole process makes it seamless. Use eCommerce tools that trigger offers based on customer behavior. Then, test different strategies to see what works best. Whether it’s price drops, alternative recommendations, or free trials, find what turns browsers into buyers. When executed correctly, downselling saves potential lost sales and strengthens customer trust and loyalty.

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