Upselling is popular in many industries – like a waiter encouraging a patron to have one more drink or an extra appetizer – it can persuade a customer to spend more, driving up sales. Upgrades and add-ons form a positive upsell strategy that build on a customer’s desire to have something better. However, this strategy can backfire if used at the wrong time or in the wrong way. Help your salesforce transform its upsell strategy with these industry tips.
Deliver More Value
Upsells often make a customer’s life easier. Your job is to help them see it. Sometimes products complement each other, so frame offers with the idea that the combination of items is worth even more than their individual value. For example, a customer who buys a camera gets more use out of it if he or she also buys a tripod, additional lenses, and a bigger memory card. When purchasing or developing products, plan for upselling by making choices that enhance the value of your current product or service.
Instacart delivers groceries from local retailers, and TaskRabbit does things like yard work and furniture assembly because people just don’t have time to do it themselves – they’re willing to pay for convenience. Subscription services flourish for everything from meal preparation to underwear. Upsell additional products that make life more convenient.
Entice customers to spend a little more for a lot more value. While some stores offer free shipping across the board, most only give it to customers who order above a set dollar amount. Customers keep adding to their cart to gain the incentive.
Bundle Items to Increase Perceived Value
When customers add an item to their cart, major online retailers often show them items that are frequently bought with it, along with the price for the bundle. Cell phone companies package a phone, a case, a charger, and add-on items like virtual reality goggles; customers who would not normally purchase each item separately are attracted to the bundle. People often feel several items sold together are more valuable than they would be sold separately.
If there’s a limited quantity of the add-on you’re promoting, let customers know the available quantity. Boost sales with time-sensitive offers, low stock notifications, and last chance emails. If you provide a service, you can still use scarcity by advertising the limited number of customers to whom you are offering your services.
Shapiro Negotiations Institute implements training around your sales processes to maximize your team’s effectiveness. Contact us to learn more about sales optimization.