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A/B Testing Idea #188 - Upsell by highlighting how small the extra cost would be

Tactic_ Upsell by highlighting how small the extra cost would be

Description

Upselling is a technique whereby you offer your client a superior and more expensive product than the one he was considering. By highlighting how small the price difference is between the two products you can really engage and interest your customer in this proposition. By helping your customer to find a much better product at not much extra cost you will benefit from the increased price in the sale but also help your customer to come away feeling as though they have benefitted as well. At the moment when someone is about to buy they are very susceptible to other offers as they have already accepted the idea that they are about to spend money and so will be more willing to consider spending a little more.

Also, studies have shown that people can be heavily influenced by the idea that they might be losing out on something and so will be more likely at this moment to pay a little extra to get the superior product rather than face losing out on the extra features or benefits etc.

Principles

  • Sunk Cost Effect (Kahneman & Tversky, 1970; Arkes; Hal R. & Blumer, 1985)

The Research

Sunk Cost Effect

The Sunk Cost Effect proves that people can be influenced in to making irrational decisions based on a perceived loss of money, time or effort already invested in something.

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