Upselling is an important sales technique every sales leader should be incorporating. It’s a way of calling existing customers and offering additional purchase items, including add-ons, or upgrades, all in order to gain more revenue and provide customers with tailored packages for best results.
If you have questions about upselling, you’ve come to the right place. Read on to find out how you can include great upselling strategies in your sales process.
Upselling vs. Cross-Selling
For starters, when upselling, your sales team is offering more expensive alternatives or upgrades to existing packages.
Take shoes for example. A customer looking for a pair of running shoes might be encouraged to buy a more expensive pair, because this newer shoe has more cushion for longer runs. You track these additional purchases through upsell conversion rates.
Cross-selling on the other hand, invites customers to buy products that complement items they are considering or have already purchased. Using the same shoe example, the sales person may suggest adding a pair of socks to go with the shoes the customer is interested in buying.
Though people often consider the two interchangeable, it’s clear they represent different sales strategies altogether.
However, sales teams are most successful when combining the two strategies. In fact, the best way to increase revenue and profits is by using both techniques at the same time. A great place to start is with an outbound power dialer.
For example, “for marathon training, I recommend our latest release. These shoes have extra cushion at the heel for less stress on the knees. And these moisture-wicking socks are great for keeping your feet dry during longer runs.”
Now let’s discuss some of the best strategies to add to your sales process.
The Best Upselling Strategies to Try Out
1. Don’t Be Forceful
The mistake many salespeople make is trying to force their products on their customers. That is not how upselling works. If anything, that will most likely cause your customers to rethink ever buying something from you again.
To upsell successfully, you have to consider the needs of your clients carefully. Once you figure out what they need, you have to tailor your upselling offer to those needs.
That way, you will be offering them something they actually require. Customers appreciate that thoughtfulness. And in return, they will return to you next time they need anything.
2. Use Both Bundles and Add-Ons
A question many people pose is whether it’s better to upsell using bundles or add-ons. Before answering this question, it’s vital to differentiate between the two types of upsells.
Bundling involves grouping two or more products and offering them to your customers at a lower price than if they purchased each item individually.
On the other hand, upselling via add-ons includes offering additional products or services, usually at checkout.
Now, back to the question: which option is better? In reality, the best upselling technique is one that uses bundles and add-ons together.
As long as you keep your customer’s needs in mind and create products that fulfill them, either option will help you increase your profit and customer retention.
3. Stay in Touch
Most companies believe they can stop thinking about a customer once the sale is over. Unless it’s time for a renewal or upgrade. But, that is a grave mistake. In reality, maintaining close relationships with customers is essential for successful upselling in the future.
If you’ve already setup a meeting with one of your customers, a great way to reminder yourself is with appointment reminders.
The best marketers and salespeople use newsletters and follow-up emails to nurture those relationships, because that’s how they let a customer know they’re thinking of them.
Whichever strategy you choose, staying in touch will do wonders for your upselling opportunities. Customers love feeling respected.
4. Show, Don’t Tell
Never offer your customers an upgrade or premium version of a product by simply saying “this version is better.” Instead, show them how the upgrade can make their lives easier. Highlight how the product fits their needs and how it will clearly contribute to achieving their overall goals.
Do that and your customer will consider the increased benefits of the offer and make a decision accordingly.
By giving your customers a detailed overview of the product tailored to their needs, your upsell will be at least 50% more successful, according to recent sales studies.
5. Urgency Can Help You
Creating a sense of urgency in an offer can do wonders when it comes to upselling. Offer your clients a time-bound upgrade option, but be smart about it.
Think about which products are most likely to get them to agree, price those products wisely, and choose a timeframe you can work with.
6. Make Sure Your Customers Are Happy
Before you try upselling, check to see if your customers are happy with the version of the product they have at the moment. Trying to get them to buy more won’t work if they’re unhappy with what they bought already.
They’ll let you know if they’re having any issues, and you’ll be able to intervene. Fixing the problem and actually caring about your customers’ needs will help you once you do decide to try upselling.
The customer will remember that you took their needs and wishes into consideration and did your best to accommodate them. That will, in turn, make them more willing to buy more products from you later on.
7. Use Real-Life Examples
Convincing people to buy something is a lot easier if you show them how buying that product has helped someone else. And if that other person has similar needs to their own, your pitch will be even more successful.
Here’s what using real-life examples or testimonials will offer your customers:
- Peace of mind
- Proof your products/services actually work
- An opportunity to ask questions
Hearing about the benefits of the products from someone who is just like them will convince your customer more than anything you have to say. It’s normal for them to trust their peers more than you.
So use that to your advantage. Maximize your upselling opportunities by incorporating user stories and real-life case studies.
Upselling is one of the smartest ways to increase revenue and profit, thus grow your business. Just a few great upselling techniques in your sales arsenal can truly impact your budget and the way your company functions.
Hopefully, these recommendations help you get started on your upselling journey and prompt you to do even more research. Good luck!
What are some upselling techniques you’ve used to boost your bottom line? Let us know in the comments. And if you have any ideas for future articles, write us at email@example.com. We’re always looking for new ideas!