The art of upselling is one of the most effective tricks to increase sales. It’s a strategy used to convince customers to buy a better version of your product or service or make an additional purchase without planning to beforehand. Upselling offers numerous advantages to both retailer and customer, but it only works when done right, and a proper technique is equally important when applied to both physical and online selling. Here are some of the best practices of upselling when done over the counter and in the digital space.
Upselling in person
When upselling in person, it’s vital to present options that you know will benefit your customer, to achieve a win-win situation. You can do this with an intuitive approach, taking note of cues of your customers’ wants and needs:
- Identify a real need for additional products and services
Not every single customer is ideal for an upsell. You have to choose someone who will have a real need for these additional products and services. Generally, when you can’t explain how the additional purchase will prove valuable to a specific customer’s goals, then they’re probably not the ideal candidate for your upsell. Rather than pushing your products to every customer, focus your efforts on customers who have a gap in their current plan when you know your offerings can fill in that gap.
- Timing is key
Finding the right time to approach your customer about additional services is crucial because it will determine the success of the upsell. A great time to upsell is when you’re confident that you have all the necessary information to secure the first order. This is because they’re already committed to buying and they’re less likely to abandon their purchase. If you try to upsell too early in the shopping process, they may get turned off and be more likely to leave, thus, losing the entire sale.
- Have data to back you up
To increase your chances of winning an upsell, you need data. Customers will look for evidence when trying to convince them in making a better and more expensive purchase. You need evidence to back your claims that they’re making the better decision. You can do this by showing reviews from other customers, or by providing social proof of customers using both products, to make your upsell pitch more trustworthy.
The great thing about upselling online is that it doesn’t only increase your business’ average order value, it also helps increase overall customer satisfaction, and helps you build deeper customer relations even on a digital platform. Customers who you know will spend more and at the same time, remain loyal customers, making your online business more successful:
- Give your customers options
When upselling online, you need to give your customers options. This is because the more upsell opportunities you show them, the more chance they will take one. There are several types you can offer:
- Upgrades – You can ask shoppers to make a better purchase by upgrading the item for a better product.
- Product protection – This upsell asks customers to extend the warranty so they can guard their purchases when something goes wrong.
- Extended service period – Instead of selling a physical product, you can upsell by offering better value for a longer contract.
- Bundles – This upsell requires you to package relevant items together and offer them to customers showing a better value.
When upselling online, you need to remember to personalise your recommendations according to each customer. Most consumers are more likely to buy if you’re recommending products that are based on their purchase history, products they’ve already viewed or browsed, and by simply addressing your customers by their first name.
- Offer free shipping
One of the most common reasons why customers abandon cart is knowing the value they must pay for shipping and delivery. A percentage of people consider paying shipping costs the worst part of shopping online. By offering free delivery for orders above a certain spending amount, you can encourage customers to take up your upsell offer and get items along with their original purchase, so they get these items delivered for free.
Learn the art of upselling!
While there are many benefits to upselling, it’s crucial to understand boundaries when applying this tactic. Don’t overdo it as your customers may feel overwhelmed, which could easily backfire on your business.
Bartercard marketplace is a great place to start upselling. If your business is dealing with excess stock or service capacity, you can turn them to extra sales through effective upselling. As a member, you get to introduce your products and services to thousands of other members worldwide. Create better deals for your customers today by joining Bartercard!