You know when you’re shopping online, and you see the “customers who bought this also bought” suggestion? Or when you go to a store, and the sales associate suggests an accessory to accompany your purchase? That’s called upselling.
In this blog, we discuss effective upselling techniques that sales and customer success can engage in:
What is upselling?
Why invest in upselling?
Upsell techniques
Who is responsible to upsell?
Upselling tips
What is upselling?
Upselling is a sales technique where a seller encourages a customer to purchase a more expensive, upgraded, or premium version of an item or add additional features or services to their purchase. The goal is to increase the overall value of the sale by offering products that provide better quality, enhanced features, or complementary benefits that the customer may find valuable.
Why invest in upselling?
Upselling provides a range of benefits for both businesses and customers. The biggest benefit to businesses is that it increases revenue. Companies can boost sales without acquiring new customers by encouraging customers to choose higher-value products or add-ons.
Upselling can also enhance the overall customer experience. When done effectively, it ensures that customers receive products or services that better meet their needs or provide greater satisfaction. Another benefit is the opportunity to strengthen customer relationships. When a salesperson makes relevant and helpful suggestions, it builds trust and rapport.
Finally, upselling contributes to customer retention. When customers feel they are getting a better or more comprehensive solution, they are more likely to be satisfied with their purchase, which in turn makes them more likely to return.
The key to successful upselling is ensuring the suggestions are relevant and add value to the customer’s purchase.
Difference between upselling and cross-selling
Upselling and cross-selling are both sales strategies that encourage customers to spend more.
Upselling is designed to persuade the customer to purchase a more expensive or upgraded version of a product or service than the one they initially considered. For example, if a customer is about to buy a basic smartphone, upselling would involve convincing them to buy a higher-end model with more features or a greater storage capacity.
Cross-selling involves encouraging the customer to buy additional, complementary products or services that enhance their original purchase. Using the smartphone example, cross-selling would involve suggesting a phone case, screen protector, or wireless earbuds to accompany their phone.
Source: RetailDogma.com
Upsell techniques
Upselling techniques are strategies for encouraging customers to purchase a more expensive version of a product, add additional features, or buy complementary products and services. They focus on maximizing the value of a sale by offering options that meet the customer’s needs while increasing the total purchase value. Here are common methods for upselling:
- Product upgrades: Offering a higher-quality or premium version of the product (e.g., a newer model, a larger size, or one with more advanced features) the customer is interested in.
- Bundling: Suggesting complementary products that enhance the original purchase. For example, offering accessories like cases, screen protectors, or headphones as a bundle when buying a phone.
- Warranties and protection plans: Recommending extended warranties, protection plans, or insurance to safeguard the customer’s purchase.
- Volume discounts: Offer a discount for buying in bulk or larger quantities to encourage customers to purchase more of the same product.
- Add-ons and customization: Offering additional features or services that improve the product. For example, suggesting personalized engravings, extra storage, or additional software features for tech products.
- Demonstrating value: Showcasing the long-term benefits or cost savings of a higher-priced option, such as better performance, energy efficiency, or durability, which makes the upsell more appealing.
- Scarcity and urgency: Highlighting limited-time offers or discounts on premium options, encouraging customers to upgrade before the deal expires.
- Social proof: Sharing testimonials or showing that other customers in similar situations made the upgrade and were satisfied can help ease customer hesitation.
Who is responsible to upsell?
Upselling can be done by anyone involved in sales or customer service. Key individuals and touchpoints who should focus on upselling include:
Sales reps and retail staff are often the first point of contact. They are well-positioned to suggest upgrades or additional products during sales, especially when they understand the customer’s needs.
Customer success teams with a deep understanding of a client’s needs can identify when an upsell would provide additional value, such as recommending a premium feature or service that better aligns with the customer’s evolving goals.
Customer service reps or technical support teams can identify opportunities to suggest upgrades, premium products or add-ons when resolving issues that could better suit the customer.
Account managers who sell services or products to other companies can recommend additional services, features, or upgrades that will improve client satisfaction and business outcomes.
E-commerce platforms with upsell features can suggest higher-value products without direct interaction using phrases like “Customers also bought” or “Upgrade for additional features. “
Upselling tips
Upselling has to be done carefully. You want to deliver value while maintaining customer satisfaction. Here are some tips to effectively upsell:
Understand the customer’s needs: Listen carefully and understand the customer’s preferences and pain points before making any suggestions.
Offer relevant upgrades: Ensure that the products or services you suggest are relevant and genuinely enhance the customer’s experience or solve their problem. Irrelevant upsells can make customers feel pressured or frustrated.
Highlight the value, not the price: Explain how the upgraded product or additional service will meet their needs better, save time, or last longer.
Use the “Feel, Felt, Found” technique: Acknowledge the customer’s feelings, share how others in similar situations felt, and explain how they found value in the upsell. This builds trust and reduces resistance.
Create a sense of urgency: If appropriate, offer limited-time promotions or discounts on premium options to encourage a quicker decision.
Leverage social proof: Use testimonials, reviews, or success stories from other customers who benefited from the upsell. People are more likely to trust recommendations when they see others have had positive experiences.
Keep it simple: Present one or two relevant suggestions that clearly improve their purchase-don’t overwhelm the customer!
Provide visuals or demos: If possible, compare the base product to the upgraded version through images, charts, or demonstrations.
Be honest and transparent: Always be upfront about the costs and benefits of the upsell.
Don’t Be Pushy: An aggressive approach can turn off customers and damage the relationship. Let the customer feel in control of their decision.
How LEAi supports upselling
LEAi, an AI-powered tool for creating training content and supports upselling in several key ways:
- Onboarding support: Effective onboarding helps customers quickly realize the full potential of the product or service. LEAi can streamline the onboarding process by delivering tailored training highlighting the benefits of additional features or premium versions and encouraging customers to upgrade early.
- Educating on advanced features: LEAi can create training content that helps front-line staff and customers better understand a product or service’s premium features or higher-tier offerings.
- Content for upselling: LEAi can generate training and informational content highlighting related products or complementary services and how they can enhance their current solution.
- Addressing common objections: LEAi can create learning modules or guides that help front-line staff address customers’ objections about upgrading and how to overcome resistance.
- Continuous learning and customer engagement: LEAi can generate continuous learning programs that keep customers engaged with the product and subtly guide customers toward upselling opportunities.
Contact us if you want to incorporate training, videos, and other guides to help your sales and customer success teams upsell.
