Upselling is a marketing and sales technique used to generate higher sales from the same customers. There are different methods of Upselling, which include:
- Increasing sales by convincing a customer to increase the number of units purchased of the same product
- Offering better or advanced versions of the same product
- Instigating the customer to purchase the same or similar product but of a different and high-end brand
- Persuading customers to change their purchase decision into buying bundled products
Upselling Your Products
Upselling is about converting a potential sale into a bigger sale with higher value or revenue. One would think that there is no harm in attempting to upsell to any or every customer. This is mostly because of a common misconception that if customers are approached with Upselling techniques and they are not interested in the offer, they would simply refuse to accept it and continue to make the purchase they had decided initially.
This is a false impression in the minds of most marketers because customers should only be offered products or services which are likely to meet their needs. If they feel unnecessarily forced to make a sale of higher worth, it is likely for them to back out of the original deal.
Since Upselling is an old practice of the real world marketing and sales, one would be surprised to know that the concept is transferrable to the world of Internet Marketing as well. In fact, Upselling and Internet marketing are known to be a lucrative combination for online and home based business owners. But remember, it is easier said than done. Whether in the real business world or a virtual platform, Upselling techniques mostly results in either success of the higher offer or a failure of the initial decision altogether.
Examples of Upselling through Internet Marketing
Online marketers use the Internet as a means of advertising and promotion. Hence, they use a variety of tools and ideas such as email marketing, affiliate marketing, attraction marketing, viral marketing on social media networks, etc. The objective of all types of online marketing is to generate more traffic and increase sales. However, success in increasing traffic generation should be considered as a golden opportunity to earn more through a single transaction.
A few examples of Upselling online are listed below:
- Offering discounts on further sales is an example of Upselling. For instance, many online businesses have a variety of paid services and offers. These companies can offer annual services with a one-time total payment over the option of monthly sign ups.
- When a customer clicks to view the details of a product so as to finalize the purchase decision, websites should disclose or highlight all other related versions of the same product which closely match the customer’s choice. For example, if a customer clicks to view a shoe design then the website should show all upgraded versions with similar design and specifications.
- When additional products are offered to a customer with free shipping for each of their purchase, it falls under the category of Upselling.
- With the final purchase, many websites showcase a variety of related accessories.
Tips on Upselling Success
There are several best practices of Internet marketing to learn from. Many of these flourishing online ventures have also put into practice a variety of Upselling techniques. All these successes have some basic principles in common, which serve as points of reference for other aspirants in the industry.
In order to ensure customer retention throughout the process of Upselling to an interested buyer, the following ideas must be kept in mind:
1. Time is of the Essence
The online window shoppers may have a different perception, but those interested in making a definite purchase explore websites in a more focused or determined fashion. These customers navigate through the sections with products of their interest only, rather than aimlessly wandering about the website. Any Upselling techniques, which may come across as a distraction to such customers, are likely to annoy them enough to either ignore the suggested purchase or leave the website.
However, when customers make their mind up and click the “Add to Cart” option, they should be offered upgraded versions so they do not feel disturbed during their own thought process. Secondly, at this time the customers are already interested in the retailer or manufacturer so further suggestions are likely to be welcomed by them.
2. Be Kind to Sensitive Customers
As a rule of thumb, any selling technique which appears even minutely forceful is likely to drive traffic away from a website. Customers are strong-headed decision makers and do not like to be treated as naïve or gullible individuals. Thus, additional offers should only be made as value adding suggestions which aim at meeting customer needs. They should in no way seem like an aggressive sales tactic.
3. Bundle Them Together for Mutual Benefit
Online products and services are an important element in the bag of Upselling tricks. Bundled packages provide business owners the benefit of increased sales of different products. However, this trick also holds value for the customers. For example, if a customer is purchasing a single product but it is offered as a bundle with higher and better versions, then he or she gets to pay a lower price for it. This is because bundled packages work like bulk buying where they are cheaper than buying each product in the offer separately.
If an online business hits the spot with their efforts of Internet marketing and Upselling, they reap a wide range of benefits while ensuring customer satisfaction.
When online Upselling is done meticulously, business owners are able to:
- Increase revenue generation.
- Increase volume sales.
- Acquire and retain a loyal customer base.
For customers, effective Upselling techniques offer the following benefits:
- Introduction to products which meet their needs better than their original idea.
- Getting connected with a website that understands their needs and preferences.
All in all, businesses continue to gain success with repeat and loyal customers because effective Upselling methods lead to high customer satisfaction and delight.