Are you looking for a quick way to improve your average order value and boost your revenue? You’re losing out on a ton of money if you’re not upselling to your customers. According to Marketing Metrics, the likelihood of selling to a new prospect is 5-20%, as opposed to 60-70% for an existing customer. Interesting, right?
Additionally, since product recommendations can contribute 10 to 30 percent of sales, as per Econsultancy, it’s crucial to present upsell offers to customers at the right time. In fact, it can dramatically raise the overall income and the average order value (AOV).
Before we begin our upselling advice and case studies, it’s critical to comprehend the distinction between upselling and cross-selling. Both strategies increase sales revenue, although they operate slightly differently. The bonus point is that any business can upsell! Ready? Let’s dive right in!
What’s the Difference Between Cross-Selling and Upselling?
Cross-selling involves recommending related products that customers can try. Here is an excellent cross-selling illustration. Cross-selling occurs when you purchase a cell phone online, and the online retailer proposes screen protectors for that particular model.
Upselling is the act of convincing a client to upgrade their product or purchase a more expensive model of it. How can you sell more? Let’s stick with the cellphone example. If you’re planning to purchase a model with a 48MP primary camera, the online retailer may advise switching to a model with 108MP instead.
The wonderful thing about upselling is this. Along with increasing AOV, it also increases customer lifetime value. Or, to put it another way, repeat consumers spend more money. And for that reason, it’s crucial for your company. As I already mentioned, any business can upsell.
Don’t believe me? Let’s look at the top 11 upselling tips and examples of how any business can upsell.
11 Upselling Tips to Increase Sales
To motivate you, let’s look at some tested upselling techniques and real-world business applications. By the time we’re done, you’ll concur that any business can upsell. Let’s get started. Shall we?
1. Before Proposing Substantial Upsells, Onboard Customers Fully
How many upsells must your clients endure before making their initial purchase? If you try to upsell every new customer before making their first purchase, they might depart empty-handed. If the upsells aren’t entirely pertinent to the customer and their demands, this annoys them even more.
It’s crucial to complete the initial purchase before attempting any upsells for that reason. Alternatively, if you must make an appropriate upsell during the purchasing process, ensure it is genuinely beneficial to the buyer.
For instance, it’s unlikely that homeowners have even considered what it could be like to work with home siding contractors. So, as a siding contractor, inform them who is coming out and when, as well as how frequently you or a representative of your business plans to contact them. Don’t hesitate to recommend more items and initiatives when evaluating the house. When you’re advising homeowners on the work that needs to be done, they expect you to speak with assurance and security.
2. Find Out What the Client Needs
When you can identify a need for the consumer and address it with a solution, you can upsell effectively. Each time you interact with a consumer, you get to know them better and learn what motivates them.
Consider the following scenario: Technicians in AC companies receive a guide to follow. Often, they only inquire about your machine’s performance and any recent problems you may have encountered. However, if they were taught to probe further, they would undoubtedly discover that you’ve suffered more severe dust allergies than normal. You’re probably concerned the problem might be connected to the air conditioner or ductwork. With this knowledge, a technician may offer you an ‘Air Quality’ upgrade to your current maintenance contract, including installing a UV light on the air conditioner and yearly maintenance and duct cleaning. Wouldn’t you gladly sign up for this upgrade?
3. Solve Problems
Any business can upsell if it can alleviate customers’ pain points. This includes contractors offering roofing services. Once you know a homeowner’s particular circumstances, you may find and promote the appropriate answer.
Some contractors may inform a homeowner of a problem with their roof without providing evidence, an explanation, or a fix specific to the issue. However, you should inform the client of any problems with their roof and the roofs of neighboring homes, explain the potential consequences and demonstrate the solution. Your strategy should be more ‘Here is what I observed, this is why that’s a problem, and this is what I can do to address it.’
4. Pick a Product That’s Relevant to Upsell
Offering pertinent products is the key to a successful upsell. Consider this: there is no point in recommending a horror book to a consumer purchasing a cookbook (which would be cross-selling anyway).
When upselling, you must provide a relatively more expensive variation of the item the customer is purchasing. It ought to be pertinent to the targeted goods, but it offers further advantages. In essence, you are marketing the advantages of the upsell when you upsell. For instance, upselling for attorneys might entail providing trust formation services to a customer seeking to draft a will.
5. Make Upsells As Simple As You Can
Any business can upsell, but one fairly straightforward rule is that you must simplify the process for your customers. For instance, people looking for water damage restoration services will likely desire to address their problem as quickly and effectively as possible. They don’t want to squander their time while their homes and possessions are at stake.
It would be nice if your company is easier to find and your upselling alternatives easily accessible. People who enter a search will likely select a business listed on the first search page. The goal is to make everything as easy as possible so that the consumer doesn’t have to think about it. If they do, they might decide not to purchase the upsell. In light of this, it is crucial that you provide all relevant details regarding the offer. Try to be as transparent as you can.
6. Follow Up via Email
Are you still not convinced that any business can upsell? What if I told you that one of the easiest and most efficient ways to increase revenue for a security camera installer is by upselling already installed security systems? When done correctly, it also shows your clients that you’re forward-thinking, proactive, and concerned about meeting their needs in the long run.
The Harvard Business Review reports that keeping current clients costs 5 to 25 times more than finding new ones. But how can you market to customers who already have security installations in place?
One of the best methods for reaching your consumers is email marketing. For instance, you can continue to offer the upsell by email even if customers decline it at the time of purchase. Additionally, you can make the transaction more enticing by providing an additional discount on the enhanced good or service.
7. Use Social Proof
I hope you are persuaded that any business can upsell. If not, let me give you another example — a roll off dumpster company — that you might think is challenging to upsell. Here is how to upsell the services. Help your customer envision the benefits of the upgrade. It can be challenging to express this with exclamation points and bullet points. Social proof comes in handy in this situation.
Use user evaluations, endorsements, and case studies to demonstrate the value of an upgrade to your consumers. Find a review that people can relate to — one that makes them say, ‘Hey, that sounds like me.’ — if possible. They’ll be more likely to think about an update for themselves once they see how it helped someone in a comparable position.
8. Give Your Upsell Recommendations a Personal Touch
Personal recommendations are more effective. According to the most recent research from Accenture, 75% of customers are more likely to purchase if the retailer:
- has knowledge of past purchases
- bases recommendations for purchasing on such a history
- identifies them by the name
Do you manage events professionally? For each clientele, thoughtfully develop unique and customized offerings, and make sure they are publicized. It will give them a sense of value and exclusivity, allowing you to showcase your upselling services. Create tailored offers after capturing your visitors’ attention with personalized communications.
It will raise the corporate venues‘ average booking price. Isn’t this sufficient evidence that any business can upsell? No? Let’s then examine more instances.
9. Implement the Rule of Three
The ‘rule of three’ is a term marketers use frequently. Three seems to be a magic number for people who respond to patterns. This has to do with how people perceive patterns.
In this instance, we’re discussing the application of the rule of three to price. Numerous studies have demonstrated that when there are three price tiers, individuals frequently choose the middle one. This is sometimes referred to as ‘price anchoring.’
In either case, having at least three more options makes an upsell seem more appealing. For instance, a roofing contractor always shows more than one shingle option. In fact, in a 2014 GAF survey, high-volume contractor respondents claimed that they always present three or more shingle options to homeowners when they meet with them. Sample boards are a useful tool for assisting customers in appreciating the value of an update, which can be more effective than merely informing the homeowner that one shingle is superior to the other.
10. Consider Post-Purchase Upselling
Although product or pricing pages frequently feature upsells, they aren’t the only areas to advertise your offer. In fact, you can still make an upsell to clients who have already made a purchase.
For instance, a service expert may visit your house to fix a furnace issue if you have an air conditioning service contract. He might observe that the home is without a humidifier and a complete ventilation system when he is there. He can either ignore it or try to upsell. However, it goes beyond simply increasing sales. If he wants to offer additional products, he must understand how they function and how installing them will benefit the homeowner.
11. Downsell When Necessary
When you offer a cheaper product or version to better suit your customer’s needs, you are down selling. It provides the highest level of customer service.
Though it might sound odd at first, hear us out. Which is more important to you: a little additional monthly money or a steady stream of clients? Consider lowering your price if your client:
- Uses the sorting options on your site and only considers items within a specific price range
- Has added an item to the cart but comes back to your website to explore less expensive alternatives
- Has removed an upsell from the cart and is not responding to emails about abandoned items
You might advise customers to start small and upgrade later if they are ready to buy an advanced tier surpassing their needs. The down-sell will cost you a few bucks, but your integrity and openness will likely hit them square in the face. That respect is worth much more than a marginally greater sale.
Get Upselling — You’ve Already Got This!
We hope that the tips and examples we have given have convinced you that any business can upsell. When done correctly, upselling is a terrific strategy to boost your brand’s revenue. Your present clients are the lifeblood of your business, and a fantastic approach to boosting their worth to you is by developing individualized, timely upsells that are pertinent to their needs.
Remember that relevance is essential. Focus on how upselling will help a consumer in your pitch and ensure it always provides a solution. Successful upselling will help you create lasting connections with your clients, leave a favorable impression, and increase sales for your business.