In this blog post you’re going to learn how to increase profit margins, increase average transactions values AND make your customers think you’re a money making genius.
This is one of the methods that made Amazon super profitable. It’s what McDonalds uses to make people spend more at the counter. Your insurance company uses it on you to increase your payments (happily I might add). And hotels use it to charge up to 150% more for the same room.
What we’re talking about today, is an order bump. And it’s the fastest, easiest funnel conversion add-on to increase profits.
Increasing profit margins used to mean a few different things.
- Increasing the price of your product
- Lowering your expenses
When you sell a product or service, and you want to increase profits through your margin, you can either increase the purchase price or reduce your expenses.
However, there is another method to increase profit margins. The order bump.
An order bump is a checkbox on a checkout page, which offers another product or service on top of the item in the checkout box.
It has the name of the product, some short sales copy and a price. The customer ticks the box if they want to add the product to the order.
For example, let’s say you’re about to order an eBook on dog training for $7.99. You click add to cart and you reach the checkout page.
Filling in your payment and user details, you notice an order bump at the bottom of the page.
[ ] YES! I understand that I can also get the physical copy of How To Train Your Dog delivered to my home address AND receive 3 hours of audio training, if I check this box!
For just a one time payment of $17 you can receive our limited edition printed version of How To Train Your Dog, and our 3 hour audio training on the 15 most important training methods for dog training.
Does that sound like someone who wants an eBook on dog training, would buy?
We’re offering extra products to a customer, who has already made the purchase in their mind. We’re offering them MORE results, for a small increase in price.
Note: This is a little different to an upsell. Order bumps occur during or before the purchase. They’re additional products that add revenue to one transaction.
In some cases, order bumps have been shown to convert 47% of the time, increasing the transaction value by up to 300% ($10 to $30).
How do order bumps work?
Order bumps work by offering the customer more results faster, easier or with more automation.
It capitalises on their desire to solve a problem and get a result. Their brains now realise there IS a solution to their problem and they want it fixed.
If we offer to fix that problem for them, they’ll buy the product. If we let them know that we can solve it even faster, easier and/or with more automation, they’ll be more likely to buy.
In fact, order bumps have been shown to not only add revenue to a transaction. But also INCREASE conversion rates on the page. There’s no hard reason as to why this works, but it’s likely to be connected with showing people that there is always something else they can try later.
Why don’t we bundle the order bump in the original product?
It’s a good question and there are a few different answers.
First, many customers are at the purchasing stage of a product, when they trust the seller and the product. They understand that this will help them, make their lives better and solve a problem.
If we try to include too much in the product, it can put people off! The commitment to 3 solutions, rather than 1 seems much larger.
So instead, we break the offer down to it’s fundamental delivery and once they’ve understood the offer and trusted enough to buy, we can offer them more help.
Imagine being sat at a restaurant and the waiter asking you what you want to drink, have for an appetiser, a starter, your main meal, sides, dessert, drinks, coffee and another drink all in one go!
It’d feel a little overwhelming. But when they take a drink order, after you’ve made the order, a good waiter will OFFER a starter or something to share. You’ve made a small commitment and you’re more likely to order something to share.
What do I offer?
THIS is the question right?! If you feel you only have one product at the moment, an order bump sounds like a watest tactic!
If you do already have multiple products, what do you add on to a checkout form?
There are 3 key words which we’ve said a few times on this post. 3 words that you just have to think about, with order bumps.
Faster. Easier. More automation.
Your order bumps just need to fulfil at least one of these words.
Make it faster to get results.
Make it easier to get results.
Make the results come with less work from the customer (more automation).
We can also think outside the box a little bit, and add order bumps to products that you wouldn’t think have order bump potential.
What can you offer, to the customer, that makes it faster, easier or with more automation, to get results?
Example 1. Physical product – no other products
We’ll sell a ladle shaped like the Loch Ness monster (I told you this would work with anything). It’s $8.95 and comes with 7 day shipping.
If we DON’T have another product, it might seem like we’ll have to build something to add for an order bump. A recipe book? A pot for cooking? They might work, but we can do something else MUCH quicker.
- Offer next day shipping for $7. As long as the shipping costs have a slight margin on them. We could offer the ladle to arrive FASTER to the customer. Even without another product, we can still increase transaction values.
- Offer ANOTHER ladle for a discount. Add another ladle for $6 ($2.95 discount). They can use it as gift or keep it. Again, we’re making it EASIER to get results.
See how easy it is to add order bumps to products, without creating more products?
Some more examples include:
- Gift box and wrapping for a physical product
- Digital files/audio files for a printed book
- Digital access to course materials for a DVD home study course
- 1 years phone support for a physical product
- 3 hours training for a physical product
- Subscription trial to send another product every week/month/year etc. (works very well with consumables
There in an unlimited number of products and services that you could offer, via an order bump. Even if you don’t have anything else to offer.
Example 2. Service – with no additional product
We’ll sell a financial consulting session, for 2 hours for $295. You’ll help customers over Skype plan their finances and discover where to put their money.
You don’t have any ebooks or additional products or services to sell at the moment. Obviously free shipping won’t work, but what can we offer at the checkout?
- The next 2 hours for just $195. Get a discount on the next 2 hours consulting if you buy today. This makes it EASIER for customers to get results.
- “No notes needed” package. Record the conversation and send over the MP3/MP4 after the call. $95 for the recordings and you’ll just record the whole conversation. Let them focus on the call and send them notes later. This helps them get results with more AUTOMATION.
See how easy it is to start adding on products to an order bump? Even if you don’t have anything else, you can create extra value just by thinking “what could I do to make it faster, easier and less work for the customer?”
If you HAVE got additional products, then that’s even better. But no need to complicate it. Just focus on faster, easier and more automation and you’ll have plenty to work with.
How do I install an order bump?
Fortunately, Beaver Funnels HAS an order bump module. You can add order bumps to any checkout form built in Beaver Builder.
If you want to add an order bump, build your checkout using Beaver Funnels and add it to the checkout page. Decide if you need address details and shipping details. Then, select “order bump” from the pricing and product section.
Beaver Funnels will automatically add whatever the order bump is, to the checkout form. If someone checks the box, the price will increase and you’ll be notified of the purchase.
Try it with your customer funnels. Ask them if they’d like to increase profit margins and brainstorm with them a few order bump ideas. Adding those order bumps to checkout forms, could increase 1 in 2 orders to over 300%! You’d literally be creating money for the customer!