Upselling is not about charging extra for something of little value. Done right, both parties win. Phil Astley explains how persuading your customer to buy something more than they were going to in the first place, can actually benefit both them and you.
No one likes to feel like a slimy salesman. Sometimes you just have to get your hands a bit dirty. The reality is that upselling can be beneficial to much more than just your bottom line. If you have the right idea and the right strategy in place, you can make upselling something to look forward to for you and your team instead of something that makes you feel gross.
Make the Sell Practical
The first rule of upselling is to make sure that what you’re offering is practical. Don’t start upselling by giving them “premium shipping services” or “upgraded customer service.” No one is going to buy that because it’s not a realistic upgrade. Those are things that can make your loyalty program stand out, but it’s not something to pay for.
Make the Sell Useful
If you make the sell something that the customer can use, they are likely to buy it. Don’t just try to add on a “warranty” that they’ll never use. Instead, look for a way to make it beneficial for them. If you are offering an additional component or the next step in their business model, it makes sense for them. If you find a way to help them bring more value on their end, they might just invest the extra money.
Make the Sell Affordable
The first rule of upselling is to make sure what you offer provides value. You can’t charge more than what the end result is worth. Consider the real cost on your end and the real value added on the client’s end. You have to find a price that falls somewhere in the middle of those. If you can’t guarantee value, you need to reconsider your upselling idea.
If you follow these three guidelines, upselling can indeed be a successful venture. Some experts say that upselling is as high as 20 times more effective than traditional cross-selling. Others claim that upselling can ultimately account for nearly a tenth of total revenues on the year.
Regardless of your feelings about upselling, it’s a necessity in this day and age.
- General Marketing