You’ve probably heard of upselling, but what about downselling? In this blog post, we’ll discuss what is a downsell provide some examples, and explain how it can benefit your business.
What is a Downsell?
A downsell is when a customer expresses interest in buying a product or service, but the seller tries to sell them a different (usually lower-priced) product or service instead.
Downselling can be an effective sales strategy for a number of reasons. First, it allows businesses to still make a profit even if the customer isn’t interested in the original product or service. Second, it can help reduce buyer’s remorse by offering a less expensive option. And finally, it allows businesses to sell additional products or services to customers who might not have been interested in the original offer.
3 Types of Downsells you can try
1. Offering a lower priced product or service: This is probably the most common type of downsell. For example, if a customer is interested in buying a new car, the salesperson may try to sell them a less expensive model instead
2. Offering a different product or service: This is where businesses try to sell a different product or service that may be related to the original offer. For example, if a customer is interested in buying a new car, the salesperson may try to sell them an extended warranty instead
3. Offering a lower quality product or service: This is where businesses try to sell a lower quality (and usually less expensive) product or service. For example, if a customer is interested in buying a new car, the salesperson may try to sell them a used car instead
Examples of Downselling
Let’s say you own a digital marketing agency and a potential client contacts you about your Search Engine Optimization (SEO) services. After getting to know the client and their needs, you realize that they would be better suited for your Pay-Per-Click (PPC) advertising services since they’re on a tight budget. In this case, you would be downselling the client from SEO to PPC.
Another example of downselling could occur if a customer is interested in buying a car with all the bells and whistles, but the salesperson convinces them to buy a similar model that’s less expensive.
Benefits of Downselling
There are several benefits of downselling that make it an effective sales strategy. As we mentioned earlier, downselling allows businesses to still make money even if the customer isn’t interested in the original offer. Additionally, downselling can help increase customer satisfaction by offering them a cheaper option that still meets their needs. Finally, downselling gives businesses an opportunity to sell additional products or services to customers who might not have been interested in the original offer.
Downselling can be an effective way to increase sales and revenue while still providing value to customers. If you’re thinking about implementing a downsell strategy for your business, be sure to keep the benefits in mind so you can maximize its effectiveness. Thanks for reading!