What is an Order Bump at Checkout? (And How does it Affect Sales?)
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- An order bump is a great way to promote an additional benefit or add-on at checkout
- Order bumps can up your sales–it’s worked for me
- Remember price sensitivity. Keep an order bump close to the dollar amount customers are already looking to spend
Hey, guys. Matt Ackerson here, the founder of AutoGrow.co as you may already know. And in this video, I’m talking about: What is an order bump?
So let’s say that you may have gone through the checkout process for some info products in the past, or maybe you’ve even bought something on Amazon, and you go to checkout and you see an instant offer pop up. Or it’s maybe just on the checkout form itself, and it’s an optional kind of add-on thing. In the case of Amazon, it might be some sort of a guarantee where you’re buying some sort of insurance on the products, like a warranty in case it breaks.
In the case of many info product checkouts, or even for an SaaS product, it might be some sort of an add-on, some sort of training or additional product, that’s going to give the product that you originally decided to buy some additional sort of add-on value or benefit.
So what is this, and how can you use it within your own sales funnel to increase the order value of each new customer that comes through your funnel? And how exactly does it work? How do you do it? What’s the tool you need to use? In this video, I’m about to tell you all about that. So let’s start off by looking at an example.
What is an order bump?
An order bump is what I’m talking about here. And here’s a checkout page from the company SamCart, on their YouTube channel, where we’re looking right now. And this is the order bump, where you go to checkout and, in this case, it’s a 14-day free trial, and they’re going to charge you $99 per month for their product.
But they would have an offer for something where no one is actually spending any money, but they might be spending money as a company, and you might be spending money as a company to acquire the lead for a potential customer who had then become a paying customer. And instead, you turn that order into a sale. You turn that trial into a sale.
In this case, they’re offering some sort of a hacks report, a checkout hacks report because SamCart is their tool, so it’s relevant to them and the tool they’re selling. And they charge you $47.
So what would have been a zero-dollar free-trial sale for them is turned into a $47 sale. And if they’re paying to acquire you as a lead that makes the amount of money, what they might call a self-liquidating offer. In other words, they’re making a little bit of profit right off the bat, or at least they’re paying their advertising cost. So it didn’t really cost anything out of pocket perhaps, depending on the economics of their business, to acquire you as a customer, as their lead.
And even if you don’t end up becoming a customer of their tool, you know, paying beyond the 14-day trial period, at least they broke even or perhaps even turned a little bit of a profit.
Here’s another example. It’s a little GIF for someone scrolling down on the checkout page. And there’s a one-click action to add the order bump to their order. And if you’re familiar with what we’ve talked about in the past about the power of a Tripwire, in the case of many info product businesses or even ecommerce if you’re selling a low-dollar value offer, for example for $7, for $9, for 20 bucks, right? And you add an order bump, this is something so powerful because people are willing to check out on your original offer of $7. And then they see this one-time offer to add on to their order. It can turn $7 order into a $200 order, even.
What do the numbers look like?
But what does this actually mean for the numbers at checkout? I mean, you understand at this point what an order bump is. You understand SamCart, which we only recently became an affiliate of, but you don’t have to use our affiliate link if you like to go check them out. And I would recommend them anyway.
But what does this look like in terms of numbers? I mean, how does this affect your conversion rate if you’re selling a Tripwire, for example, as we are in our funnel for $7? And then you say, as we do–we’ve done this through A/B testing on one of our Tripwire offers–“Hey, do you want this add-on offer? It’s a one-time deal and it’s going to cost $97.”
So how did the numbers come out for that? Well, we did an A/B test, and I want to emphasize that this is not statistically significant and I’ll explain why in a second, why we didn’t wait longer to get it up to 300 conversions, for example.
You can see in the control that it says many more views because we’ve been kind of testing the control for a lot longer, and many more conversions, too. But in this inactive test that we were previously running, where we actually removed the order bump from it, the conversion rate was substantially higher.
So, look at this: 15.6% to 23.9%, or about 24%. Without the order bump, we were making almost at 8% difference in terms of the frequency with which someone would be likely to buy. On average, that looks like almost getting close to a 45% increase. I’m kind of approximating right now.
Why would you want to add the order? Why would we stick with this checkout page with an order bump that is converting at 45% less? That doesn’t make sense. Or does it? Well, the thinking is, and I’ve seen this from the numbers too, “Yes, if we stuck with this 23%, we would convert more people on our Tripwire offer in this case,” right?
But the problem with that is, those are low-dollar value amounts. And in the previous video that I recorded, I think it might be the one just before this one depending on when you’re seeing this, and I encourage you to go back and check it out, I explained how we used to be converting in the months prior at somewhere between 11% and 12% of all email subscribers into customers. But that recently, especially in the last month, it’s dropped down to about 9.3% which in my book, I’m happy with. That’s a great number. And if you want to know a good number for your funnel to be converting at, I recommend you go back and watch that video.
And part of the reason I bring this up–why that dropped from about 11% to 12% to 9.3% is because we made this change. We made the strategic decision to go with the checkout page with the order bump even though it would convert about 40% to 45% less. Why? Well, here’s the answer.
The answer is that the revenue generated was so much higher on average that it just cancelled out, even if we were converting 45% more people on the Tripwire. The dollar value was that much higher because people would be adding the $97 offer to their order at a frequency that made it at least three times higher in terms of the amount of revenue generated compared to the Tripwire. So, that’s why it makes sense, right?
Start thinking about ways to implement order bumps
So, I want you to think about what you could possibly offer as an order bump within your funnel. And keep in mind, price sensitivity is going to be a big factor, so if you are selling a Tripwire for $7 and you offer an add-on for $500, it’s not going to convert really well.
It should be complementary and it should be within a certain range, I would say between $20 up to $97 typically, because in many cases, what you’re going to be selling as part of your Tripwire will be in that range of $7, or it might be a zero-dollar trial similar to what you saw with SamCart if you’re an SaaS business. So take action, come back, and let me know your results.
If you want me to consider answering your question in a future Matt Hacks video about how to optimize your funnel or anything in general, be sure to leave a comment or shoot us an email and I’ll be happy to consider it.
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It’s going to help you communicate with your team faster, it’s going to help you uncover gaps in your existing marketing, and it’s going to give you inspiration for how to create a funnel. Let’s say that you’re in the professional services business and your success depends on how many leads you generate. Well, this will help you with that as well.
So, until next time. Once again, my name is Matt Ack in the Matt hat, delivering you your daily dose of Matt Hacks. Keep hustling, stay focused, I’ll talk to you soon.
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