If you’re a business owner or marketer, you’ve likely heard about the value of upselling and cross-selling your products and services. The core idea that you can increase your profits while building customer trust sounds good, right?

In a way, yes. But there’s much more to generating sales for your business than offering something that costs more than consumers are willing to spend.

An alternate strategy called downselling can help you pick up lost sales while showing customers that you’re willing to negotiate on a price. The best way to describe downselling is a marketing strategy that allows business owners to create flexible pricing through coupons and discounts designed to encourage more people to complete their orders.

There are plenty of ways you can downsell, regardless of your industry, budget, or resources. Now, let’s look at the process required to get this strategy up and running. We will also explore several ways you can start downselling for more conversions.

Learn About Your Audience

If you want to successfully downsell, you need to learn about your target audience. Generally speaking, businesses have a wide range of audiences with different goals, pain points, and ways of thinking.

When you start downselling, it’s vital that you understand who will see your offer. You could have the best downsell proposal in the world, but if you’re offering it to someone that doesn’t resonate with your messaging, there’s a slim chance that you’ll secure a sale.

We know what you’re wondering, “How can I get to know my target audience?”

Well, there are several ways to get started. You’ll want to spend plenty of time engaging with your audience on social media. Use this opportunity to find out why consumers enjoy your product and what you can do to enrich their experience.

It’s also a good idea to put surveys on your website and send them out to your email subscribers. Customers and subscribers will gladly tell you what they think of your product and how to improve.

Don’t forget to review your Google Analytics reports to see how others are engaging with your site. You can learn a ton about your audience by how they behave when viewing your blog, product catalog, and marketing pages.

Take this information and use it to develop profiles that define the people that visit your website the most. The more you know about your audience, the easier time you’ll have showing the right downsell to a customer that is willing to take advantage of your offer.

Stop Cart Abandonment with a Cheaper Offer

The next topic we will discuss is downselling to customers that are already on your checkout page. Cart abandonment is a common trend that occurs when someone adds an item to their shopping cart but leaves before they check out. You may be surprised to learn that the cart abandonment rate across all industries is 76.6%!

Ideally, you want as many people as possible to complete their order. You can significantly increase the number of people that follow through by downselling once the customer tries to abandon their shopping cart.

We suggest showing a popup on the screen that lets users know that before they go, you’re offering a special price that they need to see to believe. If someone is unsure about shelling out the money to buy your product, this popup could be the incentive they need to follow through.

Alternatively, you can display an offer that rewards the consumer with a special promotion for completing a specific action, such as signing up for your email list. This small incentive can be classified as a light version of downselling, but that doesn’t make it any less effective at reducing your cart abandonment rate.

Use Retargeting to Capture Sales after Visitors Leave

Now, let’s talk about retargeting, which is another effective way to downsell to customers. Let’s say the consumer decided to avoid your offer, but they are still subscribed to your email list. If cart abandonment occurs, or if it has been a while since they shopped with your business, you can downsell to increase your sales.

Retargeting emails are designed to convince customers to come back to your website to complete an order. In most cases, this strategy is used to target customers that just abandoned their shopping cart.

We suggest sending out 3 retargeting emails within 1 week of a consumer leaving their cart behind for maximum results. Studies show that sending 3 emails, 1 after an hour, 1 after 24 hours, and 1 after a week can result in 69% more orders for your business.

It’s also a good idea to state that your retargeting downsell price is active for a limited time. This decision could encourage more people to complete their order because it inspires fear of missing out (FOMO), which affects 60% of consumers.

Turn Reluctant Email Subscribers into Customers

Our final tip is for those with an active lead list but few paying customers. There are several reasons why someone might sign up for your email newsletter but fail to buy something from your online store.

The primary reason consumers behave this way is to see if your business is worth their time. They are looking for information that you relay throughout your campaign that improves their lives or unexpectedly helps them.

Another common reason is the price of your premium service is too expensive for their tastes. We suggest sending out an email to your subscribers that are not customers, and ask them what’s holding them back. Include pricing as an option, then review the results when they come in.

Segment the customers that quoted pricing as a reason for their lack of purchase, and launch a downsell campaign designed to turn these subscribers into customers.

If someone isn’t happy with your price of $100, a 30% discount for a cheaper product could be the ticket to turning someone sitting on the fence into a customer.

Final Thoughts

Downselling is a legitimate strategy that can help you drastically improve your profit margin while forging connections with new customers. If you want this technique to work for your business, you have to know when to display a downsell offer.

Use the tips we’ve provided today to understand and segment your audience while creating an intuitive downseling program that will help you consistently grow your business.