The “Refunded” Upsell

Understand Your Buyer > How To ConvertThe Refunded Upsell


What is it?

The “refunded” upsell effect occurs when a client makes a purchase which can be upsold using the money already spent to put towards the larger price.


Why does it work?

It works firstly because we are more likely to buy something of lower value. With the purchase made we are then presented with an opportunity to spend “more” but as we’ve already spent on our initial purchase we view the larger purchase as much cheaper.

For example, I buy a theme park ticket for the day for £50. I’m offered to “upgrade” to an annual pass which is £100. Having already spent the original £50, the jump to the higher annual pass price is perceived to be much lower and it makes me feel like my visit today was “free” as they gave me the money I spent back to put towards the larger annual pass- thus it was “refunded”.

The net result is I spent £100 but I feel great as in reality, the pass should have been £100 on its own, but I got it for “only” £50 as my perception of price has been distorted.


How can you use it?

Depending on your offering,  could you promote a smaller and lower-priced version of your offering to make the sale and allow you to upsell these clients to a larger spend now they have experienced your offering?


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