Upselling is a simple method, but one which can have a dramatic effect on both your order value and your bottom line. A recent statistic from Marketing Metrics suggests that the probability of selling to a new prospect is 5-20%, and the probability of selling to an existing customer is 60-70%. For example, product recommendations have been proven to increase revenue by 10-20%, making it more important than ever to encourage the customer with the right upsell.
What is Upselling?
Before we move on to upselling strategies, it’s crucial to explain exactly what upselling is. In short, it’s an effective sales strategy that involves encouraging customers to buy a more expensive, or higher end version of the product than what they originally set out to buy. It’s much easier, and less expensive, to sell to existing customers than it is to acquire new ones, therefore investing time and effort into upselling is a smart way to increase your sales revenue. So, let me talk you through some examples of successful upselling techniques.
Create a Win-Win Situation
Instead of thinking about upselling as just a sales tactic, think of it as an opportunity to create a win-win situation for both your business and the customer. This is a sure-fire way to help your business and your brand develop an even stronger relationship with the people it already sells to. For example, upselling by offering a bundle of products cheaper than buying them individually means that your customer wins by saving money, and your business wins by making extra money having sold more than the customer originally intended to buy.
Make the Upsell Useful
This may sound like an obvious point, but you’d be amazed at how often I see it ignored. It’s really important that you ensure the upsell is something your customer actually needs. You’ll have gained their trust during the original buying decision, don’t break it by offering them something that they don’t value.
Ensure the Upsell is Relevant to the Original Purchase
A great example of upselling is one that you’ve probably heard before at some point in your life. “Would you like fries with that?” This easy upsell dramatically boosts sales of fries at that very well-known fast-food franchise, and it works. It’s successful because it is so relevant to the original purchase. Ordered a burger? Fries is the perfect accompaniment. Offering your customer something that goes alongside their purchase so well is always going to be hard to turn down!
Boost your Revenue with Upselling
If you would like to learn more about upselling techniques and how to apply them, I can help. Book your free 30-minute 1-2-1 coaching session, or join us for a free half day group session where you’ll get a head start in the critical fundamentals to business success, giving you the opportunity to assess your business to highlight areas for improvement, including mastering upselling. Book your session online today, or you can call 07388 019 663 or email email@example.com.