Have you ever purchased shoes from a footwear shop only to be approached by the salesman offering you a pair of socks? This is a simple example which defines upselling, a highly effective sales technique. Upselling can be termed as a sales technique where you offer the customer with additional goods and services with purchase.
A salesperson will try to sell every customer with almost anything, irrespective of the fact that they need it or not. Here, they offer additional goods or services relevant to the original product. As the technique focuses primarily on the customer’s experience and goals, upselling benefits both the salesperson and the customer tremendously.
The upselling technique promotes and encourages the increase in the cart value of the same selling interaction, making the primary purchase more expensive with a relevant upgrade or premium. Here are a few upselling strategies to identify the opportunities which are mutually benefitting for the customer as well as the seller.
Understand The Customer Goal
The first step before offering a customer additional services is to understand what benefit a customer is expecting by using our products or services. We need to take some time to understand the customer’s expectations and goals. Not just the short-term one, but a business should be able to see the larger picture. This helps in building a trusty relationship.
Set And Track Measurable Goals
When interacting with a new customer, make sure you set targets which define success for working together using your product or service. Leverage the knowledge you have about customer’s goals, develop an action plan with targets to keep track of your plans. This helps you in understanding where you went wrong or which approaches worked for you.
Identify The Customers With Real Need
Not every customer is fit for an upsell. Do not try to push for an upsell to customers who don’t need them. If you are not able to convince the customer why upselling is needed, upselling is not worth pursuing. This could damage the relationship with the customer and can put you in the risk of losing the business. Instead, focus on other customers.
Start Providing Value As Soon As Possible
No one provides additional resources into your business unless you can provide value and deliver results. To set up a healthy relationship with the customer, you should focus on providing value to the customer right from the start. This displays your commitment to the customer right from the beginning and convinces them that their investment has a value.
You should be able to convince the customer why the upgrade is a good idea and how it’s going to benefit them. Always pitch the upgrade as an idea. If you are selling a burger, explain why fries and a milkshake are good add-ons.
Time The Upsells
Timing of approaching a customer with the idea of the upsell of a product or a service is tricky but highly effective. A conversation with the customer regarding the future is a perfect opportunity to bring in fresh ideas and add-ons. Pitching an upsell after a major accomplishment provides a greater chance for conversion.
Provide A Transparent Price Breakdown
Think like a customer for a moment. Would you accept the offer of an add-on which asks you to pay more for vaguely described services? No. When upselling, make sure that you provide the customer with a clear cut picture of what your offering and why it is worth the money.
Identify The Trends
Once you have successfully upsold to a few customers, you will be aware of the customer trends and traits. Keep a track of these traits and incorporate those into your sales process for better customer conversion.
Use Social Proof
Most people require evidence before making a big decision. Make sure that you have the data and evidence before you contact the customer. It could be reviews and success stories of a customer who have bought the add-ons. Social proof plays a big role in building brand trust.
Upselling a product or a service is an art. Upselling increases brand trust and the average cart value for the purchase. Using an upsell funnel engine in your eCommerce store is highly recommended for your online business. These 9 strategies are highly effective in building your brand and customer relationship while upselling your products and services.