How to boost sales with the upselling technique?

Upselling is a sales technique that encourages the consumer to increase their average purchase via impulse. Where the key to carry out this marketing strategy lies in the fact that in the end it is decisive to offer a product or service that improves the initial offer by complementing it.

In all cases, something that characterizes upselling is that a valid system so that in the end you can increase the income in the commercialization of your products, services or articles. But from a series of approach in marketing significantly different from other formats. Neither better nor worse, but simply different and this is one of its most relevant characteristics when analyzing this term.

While on the other hand, we cannot forget that upselling is a technique that ultimately helps to retain your customers as few exist at the moment. To the point that in some cases it even generates a supplement to the purchase. As one of the sources of differentiation with respect to other models with similar characteristics. From where you can increase your sales and that is after all one of the objectives you are pursuing at the moment.

Upselling: How does it affect your company?

There are many applications that upselling can offer you at this time. But of course one of the most relevant is the one that has to do with its nature. In other words, it is a powerful instrument for me.improve customer evaluation from this moment on. To the point that he is in charge of starting the machinery of creativity and that is certainly not a small thing in the current moments of digital marketing.

While on the other hand, it is a very valid system to enhance your line of business in a simple, direct and to a certain point balanced from all points of view. As well as the fact that it is a strategy that in the end can make you earn more money or at least make your line of business profitable from now on.

Within this kind of strategy in the business world, it is very accurate to comment that even after the purchase, you can use personalized follow-up emails to attract customers to come back for more.

While on the other hand, and no less important is the relevant fact that in the end you  ago increase income. And not only that, many times more is earned with the product offered in the upselling than with the product that the customer decided to take with them at first.

Its application in the day to day

We must also focus on this relevant issue that to carry out up-selling with a high probability of success, you will have to take these aspects into account:

- You have to do it at the right time. This is usually in the sales process and within this when the customer has already placed an order or is already taking out the credit card to buy. In a restaurant for example, when the diner has placed his order, it is a good time to say "Do you want garlic bread for just one euro more?".

- You don't have to be aggressive. This part in the sale is one more addition. The customer has already bought what he needs, we have already sold. Do not try for all that I bought the extension of the product. Can you imagine going to McDonalds and being insisted on keeping the giant menu over and over again? No. This is a simple question that helps the customer improve their experience with the initially purchased product. If you want it good, and if you don't want it, good too.

Upselling, as in its actual operation

Cross-selling and upselling are often used interchangeably, but different scenarios with different customers may require a specific focus on the other. The word "upsell" applies to almost any instance where a product is suggested (or pushed) in addition to the one being purchased. By knowing the difference between upselling and cross-selling, you put yourself at an advantage.

Selling higher value products is encouraging the purchase of anything that makes the main product more expensive. For example, a camera may come with a supply of batteries, and the purchase of a printer may make the purchase of ink suggested.

Cross-selling is the suggestion of any other product that is purchased alongside the main product: a scanner suggestion when purchasing a printer, or a conditioner suggestion when the shampoo is selected. Where it is vital that you display a good range of similar products but do not overwhelm your customer with too many options.

Conditions to optimize this system

1. Know which of them gets results.

You don't want to bombard your customers with product suggestions - after all, they have already made a purchase from your company, so you are trying to help them achieve more success by offering other suggestions that they can use. With limited opportunities to increase sales or cross-sell, you want to use the technique that will get the best results.

It's probably not surprising that up selling works 20 times better than cross selling. Once buyers have a product in mind, they don't want to be distracted by something else. A product or service that makes your first choice better, however… That's something you can usually get on board with.

Sometimes selling products is not an option, as in the previous example of buying shampoo. A cross-sell suggestion could make your shampoo selection better. With a conditioner, frizz control products, curl enhancement sprays, and other items, you can help the buyer ensure that they are fully satisfied with their hair after purchase.

2. Offer cross-selling that makes sense.

If you've ever waited on the phone for a customer service representative to help you solve a simple problem, just to have a million "chances" before asking you for information, you can understand the frustrations your customers may feel. . Therefore, suggestions of a cross-sell or an up-sell that is completely out of the field on the left will not only frustrate them, but could put their relationship with your company in jeopardy.

Your suggestion has to be tailored to the exact needs of the client at the same time they are discussed with you. Listen to signals like "I wish I could do X" or "Next we want to try Y" to give you an idea of ​​whether your customer needs more to achieve their desired results. Actively listen to their needs and wants, determine which of your products or services might help them, and offer a cross-sell or price hike.

Something else about what is cross selling

Cross-selling identifies products that meet additional and complementary needs that are not covered by the original article. For example, a comb could be cross-sold to a customer who buys a hair dryer. Often times, cross-selling points users to products that they would have bought anyway; By displaying them in a timely manner, a store ensures that they make the sale.

Cross-selling is common in all types of businesses, including banks and insurance agencies. Credit cards are cross-sold to people who register a savings account, while life insurance is commonly suggested to customers purchasing car coverage.

In e-commerce, cross-selling is often used on product pages, during the checkout process, and in lifecycle campaigns. It is a highly effective tactic to generate repeat purchases, demonstrating the breadth of a catalog to customers. Cross-selling can alert users to products they previously did not know were offered, thereby gaining the trust of users as the best retailer to meet a particular need.

Cross-selling and relationship with digital commerce

Wholesaling often uses comparison tables to market higher quality products to customers. Showing visitors that other versions or models may better meet their needs can increase AOV and help users to be more satisfied with their purchase. Companies that excel at selling products are effective in helping customers visualize the value they will get from ordering a higher priced item.

Cross-sell and Higher-Value Sell are similar in that they both focus on providing additional value to customers, rather than limiting them to products already purchased. In both cases, the business objective is to increase order value and inform customers of additional product options that they may not be aware of. The key to success in both cases is to really understand what your customers value and then respond with corresponding products and features that truly meet those needs.

Why is the sale of products important?

Although sales techniques tend to invoke negative feelings in us, when done right, they can improve our shopping experience. Online retailers rely heavily on cross-selling techniques for several reasons:

Cross-selling helps retailers build deeper relationships with customers. Cross-selling is not a dirty tactic, if you put it in perspective. If you focus on helping your customers "win" by suggesting bonuses, upgrades, or add-ons that will ultimately provide them with more value and make them feel like they've gotten the best deal, this will prove to be a customer happiness tactic that also generates additional revenue. .

It is easier to increase sales to existing customers than to acquire new customers. Lead generation is an expensive practice. It is much easier and cheaper to optimize the sale to a customer who already trusts you and who has bought something from you in the past or who is about to make a purchase now than to sell to a new prospect who has never heard of your brand. . As we mentioned before, you have a 60-70% chance of selling to an existing customer and only a 5-20% chance of selling to a stranger. It's an easy win for many e-commerce businesses on a mission to accelerate their growth and improve the bottom line.

Sales lead to an increase in customer lifetime value (CLV). Customer Life Value is the contribution of net profit a customer makes to your company over time. You can divide your clients into three main categories: unprofitable, profitable, and very profitable. A higher CLV means that each customer generates more revenue for your business without you having to invest anything extra, which also means that your company has more money to spend on acquiring new customers. Selling products is one of the most effective ways to turn buyers into highly profitable customers and keep them coming back.

Customers keep coming back for more. Advance selling is unique in the way it adds value to customers that makes them want to come back for more. By creating an easy way to make life easier for customers, you ensure that they will come back in the future if they need more than what you are selling. Make sure to offer great customer service alongside your sales efforts to ensure happy customers no matter what.

The difference between up selling and cross selling

In e-commerce, both techniques are used to optimize revenue by increasing the amount a customer spends on your business.

Cross-selling aims to convince the customer to buy a more expensive version of the product, while cross-selling focuses on making personalized recommendations for related ancillary products.

These are some examples of what you can draw some other lesson for the development of your online business line.

Cross-sell: The customer has added a pair of sneakers from last year's collection to their shopping cart. Exposing them to similar but more expensive shoe images from the latest collection could lead to increased sales.

Cross-sell: The customer has added a pair of shoes to their shopping cart. You could display recommendations for related products on the purchase page (for example, socks, inserts, or shoelaces) to entice them to purchase additional items that increase the value of the purchase.

Best selling practices

You can use three-step sales tactics:

Before purchase: display recommendations at the bottom of the product / category page or in the sidebar (sometimes both).

During checkout: show recommendations via pop-up windows, in the shopping cart, on the checkout page, or in abandoned cart emails.

Post-purchase: Use personalized follow-up emails to entice customers to keep coming back for more.

Upselling success is built on understanding customer needs and making the shopping experience more enjoyable. Remember, a good sale always leaves the customer feeling like they have won. Here are some of the best practices to try:

Incentivize auctions and reward customers for spending more money on your site (for example, offer free shipping or a discount on future purchases).

Use parallel comparisons to demonstrate the value of the most expensive version of the product.

Make sure the product you are trying to sell is within a reasonable price range. Customers will rarely pay more than 25% of what they planned to spend.

Don't be pushy. Showcase the available alternatives but give your clients plenty of room to decide for themselves.

Create a sense of urgency by communicating real-time updates to their stock ("only 2 items left") or by reminding them that the offer is only available for a limited time.

Use customer data to fully customize offers and suggest products that really add value to the purchase.

Educate clients about the risks, or missed opportunities, of not taking advantage of the offer.

Use the appropriate language to communicate the benefits of the purchase or the risks of not buying the recommended product. The value proposition is key.

Showcase a good range of similar products but don't overwhelm your customer with too many options.