Master the Downsell: The Art of Turning Hesitation Into Purchases
You may have an intriguing sales pitch and manage to convince customers to purchase a premium product. But, sooner or later, they seem to change their minds and opt out of the purchase.
If you initially convinced them to buy a product worth $199, you could downsell a similar item of lesser value with a price point of $75. Downsell emails are the last opportunity in the sales funnel to convince a customer and close a deal.
That’s why getting your downsell offers right without annoying your consumers is pivotal.
In this guide, we’ll learn the art of mastering downsell offers and increasing customer lifetime value.
What is a Downsell?
A downsell is a sales technique where you offer a less expensive or low-tiered product after customers decline your initial offer.
It’s the opposite of upselling. Instead of persuading someone to purchase a premium product, you’ll offer them an alternative that fits their budget and preferences.
The main goal of downselling is to recover a potential loss and increase customer satisfaction by providing an alternative. This way, consumers will realize that you understand their needs and budget, eventually improving the chances of higher email marketing conversions.
The Benefits of Downsell
The primary benefit of a downsell is that it converts a potential loss into revenue. Though it sounds less profitable than an upsell offer, downselling provides a positive brand experience.
Here are more advantages to a downsell:
- It increases average order value: Although you sell products at a lower price, it adds to the overall sales.
- It meets customers’ needs: Downselling provides an alternative solution aligning with their needs and budget.
- It builds goodwill: Downsell improves customer connections by accommodating varied requirements and preferences.
- It encourages repeat business: Satisfied customers are likelier to continue doing business with you and recommend your brand to others.
- It builds brand loyalty: Providing a positive customer experience enhances brand reputation.
- It allows data collection: Understanding why customers initially rejected an offer enables a deeper understanding of their needs.
- It helps you alter pricing: Knowing customers’ preferences can help you create effective pricing strategies catering to all users.
- It reduces stockpiles: Downsells help clear out slower-moving or older products.
- It optimizes inventory levels: Customer data helps you decide on future product offers, decreasing potential losses.
Difference Between Upsell and Downsell: Should You Offer an Upgrade or Downgrade?
Upselling and downselling are sales strategies to optimize revenue.
The table below unpacks their main differences to help you choose an effective sales strategy.
Aspect | Upsell | Downsell |
---|---|---|
Purpose | It encourages customers to purchase a premium version of a product or service | It suggests a lower-priced version of a product or service |
Objective | To increase the overall value of the sale by encouraging high-end product purchases | To retain a sale by offering an alternative solution based on customers’ budgets |
When to offer | When a customer shows interest in higher-priced products or services | When a customer hesitates due to higher pricing or is overwhelmed by too many product features |
Customer perception | It can be seen as enhancing product value or come across as pushy | Often seen as helpful and considerate, focusing on the customers’ budget and needs |
Impact on revenue | Higher potential revenue per sale | Lower profits than upsells, but better than losing the sale entirely |
Risks | It may cause customers to feel pressured and withdraw, leading to lost sales | It could reduce overall revenue if not balanced with upsell and other strategies |
Best practices | Ensure the upsell offer adds genuine value for the users | Tailor the downsell offers as per the customers’ objections and ensure it still meets their needs. |
Upselling can strengthen customer relationships, while downsells show empathy and understanding. A balanced approach using both strategies can optimize customer satisfaction and revenue.
However, if more of your customers hesitate to upgrade, downselling will be the best option to instill trust.
Effectively implementing downsells allows email marketers to understand customer objections and address them to improve the brand experience.
Let’s know the psychology behind downsells to help you craft different types of email campaigns.
Identifying Customer Objections
Sometimes, customers opt for a downsell because it’s more appealing at that point. They may have budget limitations or feel the upsell offer does not add enough value.
Either way, presenting them with a better and lower-priced option can increase the likelihood of purchasing.
Customers could reject upsells and opt for downsell offers for the following reasons:
- Budget limitations: The customer may not have the financial resources to purchase the product.
- Insufficient features: The consumer may not require the high-end features of a product.
- Preference for simplicity: Certain users could prefer simple products to meet their basic needs.
- Uncertainty about the product: Customers may hesitate to invest in a high-priced product without trying it first.
- Fear of buyer’s remorse: They might fear regretting the purchase if the upsell does not meet their requirements.
- Frustrated by aggressive upselling: Being too pushy can deter consumers from considering an alternative product or a downsell offer. They might think of your brand as unempathetic and less understanding of their needs.
Understanding where customers are in the email marketing customer journey can help you craft relevant offers and email content.
Start by comprehending the psychology behind customer actions. It could be as simple as fear of missing out or fear of uncertainty that makes customers say yes or no to a product.
We’ll deep dive into the psychological aspects of customer hesitation and how to address them effectively.
Understanding the Psychology Behind Customer Hesitation
Here are key reasons customers prefer to choose a downsell offer or completely withdraw from a purchase.
1. Fear and Uncertainty
Generally, premium customers might react better to upsells, while price-sensitive customers will prefer downsells. For example, fear of losing money or making the wrong decision can force recipients to retreat.
Additionally, they might back out from purchasing if they can find better options elsewhere.
2. A Need for Validation
Social proof is a valuable strategy for instilling trust and credibility in a business. Customers often read online reviews before making a purchase decision. In fact, 70% of them will trust a recommendation from someone they don’t know.
3. Cognitive Dissonance
Consumers may experience conflicting thoughts about wanting the product and doubting the purchase. At other times, they may feel the need to justify their actions to themselves.
This is called the cognitive dissonance theory, which explains the tension people feel when their behavior and thought patterns don’t collide.
Now, consumers might buy the product to ease the tension or avoid purchasing an upsell. You can alleviate this dissonance by offering them a lower price.
4. Risk-aversion
Certain people are particular about the products they purchase. These people usually hesitate to try new products or services in fear of going through negative consequences.
They may worry about spending hefty money on a product that might not work well or satisfy their needs.
5. Price-sensitivity
Budget-conscious shoppers typically analyze the pricing and value of several products before deciding on an option. They may also question if the product is worth the price point.
By understanding these psychological triggers, you can address customer concerns in emails and increase trust in your business.
Crafting Effective Email Downsell Offers
A well-crafted downsell email can turn a potential loss into a profit.
Follow these guidelines to craft compelling downsell offers:
- Understand your audience: Identify different customer segments to send relevant offers. For example, budget-conscious and technologically weak audiences will be more receptive to downsell offers.
- Analyze customer behavior: Understand why customers initially opted out of the purchase. This can guide you in offering relevant and engaging downsells.
- Offer a clear value proposition: Instead of merely offering a downsell, communicate its value alongside the deal.
- Create a sense of urgency: Promote urgency with countdown timers to encourage people to respond promptly. Campaign Refinery allows clients to add a third-party countdown timer to increase overall email campaign metrics.
- Utilize video sales letters: A video sales letter is a sales pitch delivered in a video format. Including these alongside downsell offers can demonstrate product value and build rapport with consumers.
- Highlight unique features: Based on customer purchase behavior, highlight the downsell offers’ unique features. For example, advertising a less expensive but essential mobile will be more effective for senior citizens than youngsters.
When combining downsell offers with emails, remember to personalize the offers.
In the next section, we’ll review, in detail, the strategies to use downsell in email marketing.
Implementing Downsell Strategies in Email Marketing
The table below showcases the different strategies for building a successful downsell offer through email.
Aspect | Downsell Strategy | Example |
---|---|---|
Target audience | Identify customers who have abandoned carts, not responded to upsell offers, or expressed hesitation to higher priced products | Send a downsell offer to someone who abandoned a high-end product |
Email subject line | Use subject lines that emphasize affordability, value, or alternatives | “Looking for a more budget-friendly option?” |
Personalization | Tailor the email content based on customers’ past interactions, browsing history, and specific objections | “We noticed you were interested in our pro version, how about trying our standard package?” |
Product/service alternatives | Offer similar low-priced products that meet customer needs | “Our standard plan offers all essentials at a lower cost” |
Social proof | Incorporate client testimonials, reviews, or social shares to demonstrate the effectiveness of your products | “Check out why customers love our standard plan” |
Follow up emails | Send follow-up emails to those who did not respond to the downsell offer with better incentives | “Still deciding? Let’s help you choose with an additional 5% off on your next purchase” |
A/B testing | Test different downsell offers, subject lines, and email content to understand what works better for your audiences | Compare open rates for “Budget-friendly option” vs. “Alternatives to [Product name]” |
Email design | Keep the downsell emails simple with a straightforward call-to-action | A clean, single-column email featuring a CTA |
Analysis and reporting | Measure the open rates, click-through rates, and conversions for your downsell offers | Monitor how many customers opted for the downsell option and how it impacted the overall sales and customer retention |
A successful downsell must leave a customer feeling valued and invested in your brand, leading to long-term loyalty.
Here’s a downsell email template you can customize and use.
Successful Downsell Email Example
Use the template as is or add relevant brand information to enhance its look and feel.
Subject Line: Still interested? Explore our affordable options
Hi [ Recipient Name],
We understand that the [original Product Name] may not be the best fit for you right now. It’s okay! We want to ensure you have sufficient options to fulfill your requirements.
Introducing [Downsell Offer]. It offers [Mention Key Benefits] for a fraction of the price. This is a great opportunity to experience the [Brand Name] without breaking the bank.
But hurry! This offer ends soon [Mention the date and time of the end]
[Call to action: Learn more]
[Include product images and details]
We hope you’ll give it a try. Let us know if you have any questions.
Best,
[Your Name]
[Your Company Name]
Ensure you determine the best time to send downsell emails to avoid frustrating users. Sending frequent and irrelevant offers can cause customers to unsubscribe from your emails, potentially increasing the risks of spam traps and lowering the sender reputation.
Adhere to good email-sending practices and use a reliable email marketing platform to avoid these incidents.
Let in More Customers in Your Sales Funnel with Campaign Refinery
Campaign Refinery is a reliable and versatile email marketing platform with the highest email deliverability rate on the market.
Our clean email-sending practices and top-notch deliverability eco-system allow clients to experience flawless email marketing. We handpick clients and require them to undergo mandatory domain authentication to safeguard sender reputation on the platform collectively.
This means, as a client, you will be able to:
- Enjoy the highest email deliverability rate,
- Make use of our default DKIM and unsubscribe options in all emails you send out,
- Quickly deliver emails through our high-speed sending engine,
- Get more people in your sales funnel through powerful segmentation tools, including our latest audience groups feature.
You can focus on the email marketing funnel design while we take care of your email marketing results.
It only takes a few clicks — apply to become our client today and enjoy better email marketing revenue!