One-Time Offer (OTO)

By /

A One Time Offer (OTO) is a sales technique where a product or service is presented to customers as a special deal that is available only at the moment of purchase and will not be offered again.

This strategy is designed to create a sense of urgency and exclusivity, encouraging immediate action from the customer.

OTOs are often used in online sales funnels immediately after a customer has made an initial purchase or has signed up for a service, leveraging the customer’s current engagement level to increase the transaction value.1

Visual Representation:

one time offer visual representation

Purpose:

The primary purpose of a one-time offer is to increase the average transaction value by encouraging customers to make additional purchases at the point of sale.

It also aims to enhance customer satisfaction by providing great value exclusive deals.2

Types of OTOs:

  1. Upsells: Offering a higher-end product or an upgraded version of the initial purchase.
  2. Cross-sells: Recommending complementary products or services that enhance the value of the initial purchase.
  3. Bundles: Providing a package of related products at a discounted rate.

Considerations for Effective OTOs:

  1. Relevance: The offer should be relevant to the initial purchase to increase the likelihood of acceptance.
  2. Value Proposition: The deal should present clear value, whether a significant discount, exclusive access, or added benefits.
  3. Clear Communication: Ensure that the terms of the offer, the benefits, and the time sensitivity are communicated clearly to avoid confusion.
  4. Easy Opt-In Process: Accepting the OTO should be straightforward, requiring minimal steps to reduce friction.

Usage:

Online sales funnels commonly use one-time offers, especially in the digital product and e-commerce sectors.

They are particularly effective in checkout processes, after sign-up pages, or during online events where the customer is already engaged and more likely to be receptive to additional offers.

The key is to present the OTO when the customer is most likely to be receptive, such as after they’ve just made a purchase or shown interest in a product.3

Example:

Imagine you run an online course platform.

A customer purchases a beginner’s course on digital marketing.

Immediately after the purchase, they are presented with an OTO: “Exclusive for you! Upgrade to our Advanced Digital Marketing Bundle for 50% off, available only for the next 30 minutes!”

This offer allows the customer to access more comprehensive training at a discounted rate, and for the business, it’s a chance to increase the transaction value.

Benefits for Businesses:

  1. Increased Revenue: By encouraging additional purchases, OTOs can boost the overall revenue from each customer.
  2. Enhanced Customer Value: Offering complementary products or services can enhance the user experience, increasing satisfaction and loyalty.
  3. Inventory Movement: OTOs can be a strategy to move excess inventory or promote less popular products by bundling them with best-sellers.4

Related Terms:

References:

1. One Time Offers Uncovered. (n.d.). (n.p.): 大賢者外語. https://www.google.com/books/edition/One_Time_Offers_Uncovered/P3XtDwAAQBAJ

2. BRUNSON, R. (2022a). Dotcom secrets: The underground playbook for growing your company online with sales funnels. HAY HOUSE INC. https://www.amazon.com/Dotcom-Secrets-Underground-Playbook-Growing/dp/1401970591/

3. Robul, Y., Deineha, O., Prokopenko, M., Novikova, N., Lukianykhina, O. A., & Baistriuchenko, N. (2020). Cyber sales as the latest tool for optimizing an enterprise strategy. https://dspace.univd.edu.ua/server/api/core/bitstreams/035f1935-ca70-429e-9b62-2010ec88097b/content

4. Basic sales funnel mechanics – the OTO (one time offer) page. (n.d.). https://www.business2community.com/sales-management/basic-sales-funnel-mechanics-the-oto-one-time-offer-page-0363480

Scroll to Top