Posted on : 19-02-2011 | By : stargaterich | In : Internet_Marketing
One of the most annoying Internet marketing tactics employed is what is term down-selling. This is a common strategy used to close a deal albeit at reduce profit when a customer decides not to purchase any product from a website. The idea is very simple and it goes like this:
A visitor navigates and landed on the sales page aka squeeze page. After going through it, they decline and leave the website. An exit pop up box appears and offers a discount price for the same product. The potential prospect further declines and leave the page and is confronted with yet another exit pop up box; this time with further deeper discount!.
To certain extent this tactic has been used to great effectiveness in terms of increasing sales profits as it helps the seller to close as many deals as possible from the visitor. The basis for this strategy is that since the visitor is leaving the page there is no harm to throw in additional perks such as a discounted price to try keep them motivated to buy.
There is nothing wrong with down-selling however the methods or approach to go about it will make a difference from the customer perspective. How would you feel if you immediately purchase a digital product only to realize later that someone else pay much less for it simply because they declined it the first time and were offered a further discounted price for the same product!.
Of course I bet you couldn’t help but felt shortchanged and cheated when this happen to you and you have every right to be upset about it. It did happen to me a couple of times till I realized that the best way to deal with this is NEVER to buy any digital product straightaway but rather decline it first and see if there’s any down-selling or exit discount that you could take advantage of.
As an Internet marketer or online business owner dealing with selling of your own products or affiliate products, you need to make sure you don’t inadvertently shortchange your customers by using the down-selling tactics via discounted price offer for the same product. You can however choose to offer a discounted price for another product that is relevant and related to the first product that you sell in the sales landing page where the visitor can order the product.
Some Internet marketers approach down-selling by removing the additional add-on bonus from the main product when the customer declines the offer the 1st time. There is potential problem with this approach because not every customer make up their mind to buy a product simply based on the add-on bonus. Down-selling using such tactics is still controversial because you are still offering the SAME product but at discounted price.
There is no hard and fast rule as to what constitute correct down-selling. It takes a lot more effort, time and money to get new buyers versus existing customers. It takes time to build relationship with a customer and as the saying goes, people buy from whom the trust. Do not destroy the trust that you have established with your buying customers simply for the sake of trying to get as many sales through unethical down-selling tactics. The profit gained through such tactic is not worth it at all.