February 23, 2021
How to Upsell 101: Too Much Choice Can Lead to No Choice
Jos Schaap | ROOMDEX
Many people argue that when you upsell a customer, more choices equal more conversions. Rationally speaking, the more choices you offer your customers, the more sales you should make. That’s why most companies offer a wide variety of their products, whether it’s jeans, toothpaste, food, etc. By doing so, logically we think, our customer can find exactly what he or she likes. But in the wrong context, giving customers too many choices can overwhelm them. This is called Choice Paralysis.
Over the past two decades a wave of research has been completed by numerous scholars into the psychological effects of “choice overload”. They found evidence that while people want choice, choosing from an ever-expanding array of options can be daunting. More upsell call-to-actions (CTAs) won’t increase your chances of getting a conversion. In fact, the more you ask of someone, the less likely they’ll do anything.
That is not to say variety of choice is bad. That’s why we see many different options for appetizers and entrees at a restaurant. However, when you ask the waiter for a recommendation, you don’t want to hear 10 options. You want to hear something personal and targeted. It is the same concept when you upsell.
The email you send the customer is a recommendation. If they have already booked a room with you, you have a relationship established. Once you have a relationship, leverage the power of that connection. Now is the time to be personal. Don’t overwhelm them with choices. Delivering one or two offers reflects the one-to-one nature of a direct email communication. Upsell emails are a huge opportunity for hoteliers to engage with their guests and at same time help maximize ADR. But, in order to be successful, upsell emails need to simple, personal and relevant.