Digital Marketing For Dummies. Ryan Deiss

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      Source: https://www.amazon.com

      FIGURE 3-8: Amazon expertly uses upsells and cross-sells to increase the basket size of its customer and get the sale.

Because the cross-sell may not be as relevant to the first purchase, a cross-sell can feel like it’s coming out of left field, which can be jarring to and unwanted by the customer. That’s why you have to be careful with cross-sells, or you risk annoying your customers. Imagine buying a Mac computer and having Apple ask before you’ve even left the store whether you want to buy an iPhone or an iPad. That said, if the cross-sell truly complements the initial purchase, your customers will welcome the offer, and you’ll welcome the additional revenue.

      Building bundles and kits

      Bundles and kits are other forms that your monetization offer can take. A bundle or a kit is taking one of your stand-alone products and combining it with other like items that you or one of your business partners sell. For example, if you sell men’s razors, you might bundle the razor with a shaving kit that includes all the essential items a man needs to shave with, from the brush to the after-shave. This “essential shaving kit” will cost more than an individual razor, which increases your revenue per sale. Do you have products or services that you can combine to create a new value proposition?

      Tacking on a slack adjuster

      Slack adjusters can have a dramatic impact upon the bottom line. A slack adjuster is a product or service that you offer at a price point much higher than your typical offer. The price is generally 10 to 100 times higher than your usual offers. Although this product or service will appeal to only a very small portion of your market, those that do make this high-ticket purchase will have a dramatic impact on your revenue.

For example, Starbucks sells cups of tea and coffee, but the company also sells coffee makers. The coffee maker is far more expensive than the $6 cup of coffee. Most people stick to their usual beverage and ignore the coffee maker, but a few buy the coffee maker. When a product is that much more expensive than the core offer, only a small number of slack adjuster sales is needed to make an impact.

      Recurring billing

      Sometimes called a continuity offer in digital marketing circles, a recurring billing offer charges the customer periodically — usually each month or year. This may take the form of a club or some other type of membership, or a subscription such as a monthly gym membership. In the latter case, the gym charges a membership fee 12 times a year. You also find recurring billing in content and publishing with subscriptions to Netflix or Cosmopolitan magazine, and in e-commerce with products like Dollar Shave Club and Birchbox. Look to your products or services and consider how you can make a sale once and get paid over and over again.

      Recurring billing can be a difficult sell because of the commitment that goes along with it. To overcome this issue, clearly communicate the advantage provided by the recurring billing offer and lower the perceived risk by clearly communicating the cancellation. For instance, the cooking delivery company Blue Apron often states in its offers that you can cancel anytime. In the dating analogy earlier in this chapter, a recurring billing offer is akin to a marriage proposal. Customers must decide whether they want to commit to you for an extended period.