Upsell, upsell, upsell. Many of us (particularly those with a sales background) have heard the term, but what does it really mean? Upselling is the practice of offering customers additional and/or superior purchase options in an attempt to make a larger sale. According to statistics, upselling is responsible for 4-5% of sales.
- Extended warranties on electronics
- Food sides and sizes (think: “Do you want fries with that?” and “Would you like to upgrade to a large for only 50 cents more?”)
- Carwash options when you purchase gas
- An airplane ticket upgrade
Along with the other marketing techniques we’ve covered, upselling is an important strategy for small businesses. When utilized well, it can lead to an increase in revenue and, in turn, steady growth for a business.
For Customers, upselling can:
- Expose customers to new products and services
- Meet customers’ needs, lifestyles, budgets, and spending patterns
- Improve the quality of the item purchased, giving the purchaser more bang for his or her buck
For Businesses, upselling can:
- Lead to a more profitable sale
- Increase conversion rates
- Improve overall customer satisfaction by meeting or a exceeding a client’s specific needs
- Increase regular order totals
your company’s upsell strategy will be more effective if you promote products or services that complement the customer’s original purchase. For example, it is unlikely that you would offer a customer a non-food product with his or her hamburger, as the two items do not go hand-in-hand.
Upselling can benefit both businesses and customers alike. Ensuring that this marketing technique is part of your company’s annual strategy will generate solid results and play a significant role in the growth of your business.