Nowadays several organizations are always in the lookout for increasing efficiency in their sales potential and achieving higher profits per sale for every client encounter. There is one technique which has been recently discussed often – SLO or self-liquidating offer downsell funnels. When businesses use SLO downsell conversion rate they are able to regain customers who are not yet ready to purchase other higher ticket products but at the same time make sales.
In this post, readers will learn what SLO is, how downsell works within the context of a funnel, and the best practices for enhancing your SLO downsell conversion. At the end of this post, you will be in a position to understand how to apply, and operate downsell for higher profitability and customer satisfaction.
What is a Self Liquidating Offer
Self-Liquidating Offer or slo downsell conversion rate a self-liquidating offer is commonly defined as an offering that contains enough revenue generation opportunity for the distributor to recoup their costs without having to rely on additional offers for funding.
The objective is to offer a product for sale at a certain price level that will allow the costs of the necessary marketing, advertising, and promotional effort to be recovered to ‘reacquire’ that customer, thereby making the offer ‘self-funding’.
SLOs can often be implemented at the top of a funnel to sell consumers on a brand while not losing money on the ad cost. These products are mostly sold within the range of $7 to $49 and have a lot value to appeal to the first time clientele. This is usually done through the use of guides, templates, mini course or even an eBooks.
So why include an SLO in your funnel?
The first advantage that comes with an SLO is that it provides companies with customer acquisition cost compensation during sign up. Rather than investing cash in ads and creating leads, which will cost the business money with no guarantee that the business will earn back the money instantly, an SLO helps a business to go in the black from the onset. In this way, more attention can be paid to upselling and down selling in the interest of garnering higher profits further down the totem pole.
Some key benefits include:
Risk reduction:
It makes your customers get a feel of your brand without having to pay so much, hence getting past the initial huddle.
Recouping ad spend:
An SLO ensures that one is able to recover fully or partially the costs incurred while conducting advertisement campaign, say on Facebook or Google among others.
What is downselling?
Describing the Concept of Downselling in the Context of Sales Funnel downselling makes sure that you still are able to cover your value of the lead who may have left the funnel empty. It also assists to develop relation with customers so that there are high chances that the same customers will come back to purchase non-circular products in future.
For instance, your main offer is a $297 course and the customer has not bought it; you can then present them with a down sell which is $97 mini course or templates or toolkit that have some value but much lower than the main offered product.
An SLO Funnel perspective to the consideration
In an SLO funnel, down selling becomes more important than ever before. If the initial productoffer is low cost, the customers may not be willing to make an additional up sale especially if they’ve not done business with your company before. You get to make customers who might shy away from the new product due to its higher pricing still remain your clients.
Conversion Rate Elements and its significance
SLO DOWN SELL CONVERSION:
This is the ratio of people that buy something else at a lower price when they have declined a more expensive item.
To calculate the conversion rate:
Conversion Rate = (Number of Conversions / Total Visitors or Impressions) × 100### Comparison of the Customer Oasis Website with Industry Standards
Conversion Rate = (Total Visitors or Impressions Number of Conversions)×100
This figure is important to make sense of because it shows how effective your cheaper option is at reaching the right audience of cost-sensitive consumers.
Why SLO Downsell Conversion Rate
The downsell conversion rate is a very important metric since it shows you exactly how many otherwise lost sales you can recover. In addition, a high downsell conversion means that your marketing dollars are productive, as they generate revenue from more of the leads.
In addition, effective downsell strategy leads to the minimization of cart abandonment while at the same time enhancing a client’s average CLV. If a lead does not end up buying into the upsell, they are still helping to contribute to your bottom line by taking on the downsell.
Elements that effect downsell SLO conversion.
There are quite a few factors that you might consider to get to your SLO downsell conversion rate depending on how and what you offer it. Here it is useful to look at the components that may impact this crucial index.
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Offer Relevance
The downsell should therefore be directly related to the initial core offering. When the customer turns down the upsell, the downsell should not seem like it belongs to a different category all together. For example, if your upsell is an advanced course on marketing strategies you can make a downsell a basic course on strategies or a kit of templates connected with marketing campaigns.
Making sure to share a downsell product that is related to the initial product is the only way that potential customers will feel that they are still interacting with your brand but in a different way which makes them more willing to buy.
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Price Sensitivity
The first factor which customers decline an upsell is because of price sensitivity. A perfect downsell must be cheaper than the primary offer to capture clients who feel that the up sell is expensive. When it is just a matter of reducing the price by a lot, it looks like a great deal on the part of the consumer and can help push for a downsell faster.
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Scarcity and Urgency
An excellent suggestion is to make customers feel that the downsell offer is time-sensitive, which can increase the conversion comparatively high. When customers believe that the offer is limited, they will be compelled to make the purchase without any ado. Special offers or deadlines such as Time sensitive offers or countdowns can be used to push the button on a sale.
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The Quality of the Offer
Despite that a downsell is cheaper, it must be a valuable offer. A setup that involves proposing a lower quality product in return for a smaller price may spoil your customer and thus reduce the conversion rates.
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Clear, Compelling Copy
The kind of language and things that you say during the downsell are important. Ensure that you have written copy which addresses the emergence of the pain that the customer might have had with the previous offer of the upsell and paint your downsell product as one that fits the need of the customer. For example, you could say:
If you are not yet ready for the complete course, we wish to remind you that you can start with this kit and receive great results immediately!
When downsell offer challenges the customer’s thoughts or concerns, it becomes easier to take specific action that could make the offer more attractive and convert the customer.
Your SLO Downsell Conversion success rate
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Organize a “Lite” Version of the Key Product
However, one of the best strategies in enhancing the downsell conversion is to provide a “lite” or less complicated version of the main product you’re selling. For instance, if you offer a complicated premium membership to your blog, you can down-sell it to a beginner membership plan which contains a few lessons or an eBook.
The reason is simple: this approach still allows the seller to present something of value to the customer, yet it demands far less time and money compared to the core value proposition.
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Upsell Rejection as an Approach:
How to Use Them to Make the Most of Your Downsell
Do not just leave them, instead use this information to develop even a better, more persuasive downsell message. For instance, if customers are dropping out on your upsell because it is costly, a downsell priced much lower than the upsell would therefore have a louder message. On the other hand, if customers are dropping off due to complexity of up sell then you can offer a down sell that they need.
Knowing why those customers are refusing the upsell can help you create a better downsell that may bring you more sales.
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Test Your Downsell Offers
As with any method of digital marketing, A/B testing and optimization form the cornerstone in increasing conversion rates. Split test different forms of the downsell offer, from the actual price to the text of the offer or even the whole structure of the downsell product. When you experiment and monitor outcomes, you’d be able to discover the ways and means that are effective with your audience and manipulate your plan to achieve maximum sales.
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Use Social Proof
This is because when potential buyers are able to see that other customers have found value from the downsell then they too are going to make that purchase. Recommendations by peers exert a lot of pressure especially when the prospect is in doubt.
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Use Persuasive CTAs
Do not use general and conformist button slogans as “Buy Now,” while using the call to actions that describe the benefit of the product at hand. For instance, turning a basic title such as “Begin New Business Today” or “Activate New Business Today” would be more attractive as visitors are likely to have higher chances of clicking through by utilizing phrases such as “The Secrets to/Rapid Results to Growing Your Business Instantly”.
Conversion Rates of SLO Downsell
In your case, monitoring performance of the downsell strategy is an important key to making sure your effort yields results. Here is a list with some of the tools and measures you can use to monitor your SLO downsell conversion rate and how you can improve on your funnel.
ClickFunnels or Kajabi:
most of the funnels built with tools such as ClickFunnels or Kajabi have integrated analytics which enable individuals to monitor the conversion rates in every stage of the funnel.
Hotjar: Hotjar is a tool that offers heat maps and session replays as well as a heatmap to help you monitor how the customers of yours engage and possibly convert on the downsell page of yours.
Key Metrics to Monitor
Remember from section 1, this is the proportion of customers that accept the downsell after declining the upsell.
Abandonment Rate:
This refers to the ratio of customers who drop out of your funnel without buying your product or taking up the offer of a cheaper product.
Customer Lifetime Value (CLV):
The total amount of money that you expect to earn from specific customers for the lifetime of their relationship with you.
Conclusion
SLO installation and its optimization is a crucial and well-considered facet to any self-liquidating offer funnel. This way, by providing customers with downsells, you are able to get your share of their money and get your organization profitable even if they do not buy your high ticket products. Correctly designed and implemented offer structure, professional copy, and constant optimization allow you to increase your conversion rates and the effectiveness of your sales funnel in general.
Bear in mind that the fundamental concept of down selling is to position yourself in a way that makes sense and provides your client with value they can’t refuse.
