What Is Downselling and How Does It Affect Sales

Upselling and cross-selling are terms we’re both familiar with. When anyone declines your service or product offer (often by clicking the close button on your website), you can offer them a lower-priced substitute product (which you should always do if you can).

A downsell has the benefit of ensuring that a consumer buys something, even though it isn’t the commodity you’d want them to purchase. That is, you are compensated for your sales efforts. Also, now that they’re a client, they’re more likely to purchase higher-priced products in the future if they have a positive experience with you. Follow the link for more https://www.smartcompany.com.au/marketing/sales/what-is-down-selling/.

There are two issues with downsells:

For starters, they can be inconvenient. It can be aggravating to be kept up and given another bid after you’ve considered a purchase and chosen not to make it. It can even seem desperate.

Second, they can promote potential bad purchasing habits. If a consumer believes that merely refusing the original offer would result in a “better offer,” they will always refuse.

To avoid causing annoyance, make the downsell as painless as possible. Some marketers may argue that it doesn’t matter if you annoy a customer if you’re going to lose them anyway. However, they will continue to be prospective consumers in the future. They can even generate negative press for you if they consider your downselling method irritating.

The downsell must not necessarily be a cheaper version of the classic offer to avoid promoting poor buying behavior. It has to be substantially different in a way to justify the lower price.  It must also be viewed as providing value to the potential customer.

A complimentary DVD containing training content, for example, is a popular offer in internet marketing. A cheaper, digital edition with no actual DVD may be a downsell.

It could also be for more basic training materials that would be a better choice for the prospective customer. Surveying consumers to find out why they didn’t buy the initial deal is smart to figure out what the downsell might be.

Inquire about their key reservations. Was it the cost? Was the bid too straightforward? Or is it overly complicated? Is it possible that they’re more interested in something else? You can deliver a downsell that answers the key objection until you know what it is. Click here to find out more!

Professional services subjected to downselling

We benefit from selling face-to-face in professional services like a doctor, lawyer, accountant, or consulting, so there shouldn’t be much of a discrepancy between what the customer wants and what we’re offering.

No one, however, is fine. We sometimes have a service that exceeds the client’s expectations. Often the emphasis isn’t entirely where it should be. Usually, they realize they simply cannot afford the service we are providing. And often, they simply aren’t sure we’re the best fit for them because they haven’t seen us in motion. In these cases, a downsell can be beneficial.

If you’ve been negotiating a consulting project with a client and they choose not to continue at this time, a downsell to a training program in the same area for a few of their team might persuade them to agree. The consulting project can be rescheduled after the training course goes off without a hitch.

Maybe you suggested a massive lead-time reduction initiative involving all of the client’s big factories, but it was too much for them. To get started, you might be able to downsell to a pilot project in just one plant.

When do you downsell?

When you realize a customer isn’t looking to purchase what you’re currently selling, a downsell is the best option. Don’t launch it too soon; you may just need to sort through a few objections to seal the deal.

A downsell, on the other hand, will work if you know a client isn’t going to buy. It’s best to rewind the conversation in a visible manner. “John, it seems that what I’m suggesting isn’t a good match for what you’re looking for. Do you mind if we take a step back and revisit some of what you were thinking about the issues you were experiencing with your lead times?” After that, rework the issue and solution before introducing the downsell.

A downsell can be added at a later time. For example, if you started a campaign to sell a 10-day research project to an eligible list of businesses, try contacting those who declined a week later and offering them a half-day workshop on the topic. It’s possible they wanted to collaborate with you but weren’t convinced enough to commit to the complete 10-day project. A half-day seminar is much more affordable, and it can give them the trust to hire you for the big project, mainly after they’ve seen your skills and expertise in action.

In this situation, you must exercise caution and have a rational explanation for why you are suggesting something different that you did not even mention in your original plan.

Check out this example: “John, several clients have expressed interest in a half-day seminar on lead time reduction. I understand you didn’t think it was the right time to start working on the study together – but would you like to come to the workshop to have a taste of the data?”

Constructing downsells like this will restart the conversation with a customer who wasn’t quite ready to buy but was on the verge of doing so. Certainly more likely to buy than a totally unqualified lead on which you may be focusing your efforts.

Never change your pricing

Every smart business person will always have a list of downsells on hand, as well as the times and conditions under which they should be offered. Only make sure you’re not downselling solely for the sake of gains. You risk losing your credibility and dignity if the downsell does not satisfy the needs of the prospect.

Never give an impression that you’re lowering your price or offering a lower-quality service just to get a deal. Whether you like it or not, word spreads quickly that you will drop your price at the very first sign of opposition.