What Is Upselling & How To Upsell

would you like to increase your
conversion rates and gain more profit
from existing customers there's a
marketing strategy that will help you
achieve this goal and make the most of
the users and customers you already have
in this video we'll talk about the
upselling what it is and how to upsell
in your strategy let's jump straight
into it
[Music]
what exactly is upselling upselling is a
sales technique where customers are
encouraged to upgrade to a premium or
enhanced product or purchase add-ons to
increase their spending for example you
might encourage them to upgrade their
subscription the aim is to offer the
buyer options they may not have
considered and increase the level of
profit you get from their final purchase
aside from the obvious benefit of
increased profit what are the benefits
of implementing an upselling strategy in
your business on the one hand upselling
can help you develop deeper
relationships with your customers and
when it's done right it can improve the
shopping experience the aim is to make
your customers feel they are getting a
good deal on the other hand it's also
easier and cheaper to upsell to existing
customers in sourcing attracting new
ones from the customer's perspective if
you apply the strategy well it can offer
them convenience and flexibility
upselling can balance growth between new
and existing customers it can also
increase customer lifetime value which
consists of net profit contribution a
customer makes to your company over time
and last but not least upselling is one
of the most effective techniques for
converting shoppers into returned
customers it can also increase your
profit margins and your roi now that you
know what is upselling you might be
wondering what the difference between
this strategy and cross-selling
although both techniques are commonly
used in e-commerce there is a subtle
distinction between the two terms put
simply cross-selling is about adding to
a sale by promoting additional
complimentary products for example if a
shopper is buying a laptop from you you
could cross-sell software speakers or
headphones upselling in turn is about
offering an enhanced product if the same
shopper is buying a laptop you could
offer them a premium version of the
product or an enhanced warranty in other
words upselling increases your revenue
by convincing a buyer to purchase a
superior version of a product whereas
cross-selling suggests complementary
products to buy your business model will
ultimately dictate whether cross-selling
or upselling is more interesting having
said that most companies find that a mix
of the two strategies at different
stages of the sales funnel can help to
boost profit margins and add value to
the buyer experience if you need
examples to help you design an upselling
strategy that provide your customers
with genuine value and increase your
overall revenue don't worry here are
some ideas you can apply to your company
strategy to upsell
get to know your buyers first and
foremost you need to understand your
market so that you can implement the
right upselling strategy use tools like
google analytics to get to know the
habits and behaviors of your customers
figure out what they search for and what
they buy so you can identify the right
products to upsell make sure you
understand their needs before you
approach them with an upsell opportunity
you want each customer to feel you are
adding value with your proposition
choose a relevant product to upsell
you'll also need to make sure that the
products you upsell are relevant do they
provide customers with added benefits
are they relevant to the products that
they have decided to buy talk to them
about additional features and the
benefits they will see now and in the
future offering your customers
irrelevant products or overwhelming them
with too many options is a surefire way
to put them off this will not only put
them off from making their initial
purchase but it is also likely to stop
them from returning in the future offer
a reward a great tactic to encourage and
upsell is offering a reward this can be
a great incentive to motivate customers
to be impulsive and commit to your offer
the best time to do this is at the final
stage of the purchase for example if
they have 50 worth of items in their
shopping basket you can offer them the
incentive of a 10 discount if they
upgrade a product offer free shipping
another great tactic to use at the final
stage of a purchase is free shipping if
a customer upgrades their purchase this
gives them a clear payoff and it can be
a great motivator studies have shown
that 9 out of 10 customers say free
shipping is their top incentive for
completing an online order for example
sephora's e-commerce platform offers
customers free shipping once their order
reaches a value of 50 customers would
much rather spend that extra money on a
product than on something intangible
like shipping expenses offer multiple
upsell opportunities you should aim to
offer multiple upselling opportunities
at different stages of the customer
journey this makes it far more likely
that you will successfully upsell a
product for example you could offer up
some opportunities on product pages when
customers add items to their shopping
cart and when they check out finally and
arguably most importantly never be pushy
you don't want to annoy your customers
or overwhelm them with upsells if you
promote upselling opportunities at the
wrong time or too often then you might
lose the sale altogether for example
there's no point pushing an upselling
opportunity when a user has just landed
on a product page you should also avoid
using pop-up windows or anything that
gets in the way of their shopping
experience
generally speaking the best time to
upsell is once the prospect has decided
to make a purchase this might be when
they add an item to their basket or just
before they would check out you want
your customers to feel that the product
you are trying to upsell will provide
them with the genuine value not that you
are pushing a hard sale for your own
benefit upselling is just one of the
strategies that some of the most
successful companies use to sell more
and reach more customers if you want to
learn nine successful techniques brands
such as nike red bull spotify and twitch
using their marketing strategies click
the video on your screen right now we'll
see you there and don't forget to give
us a like and subscribe to the channel
if you enjoyed this video