Upselling – what is it and how to use this method?

What’s better for a retailer than a customer buying in his store? It’s simple – a customer buying more in his store! It’s not always easy to achieve this goal, but we can increase our chances by using the right sales techniques. One of them is precisely upselling.
Table of contents:

What is upselling?


Although the term “upselling” is the most common, you may also encounter the terms “upselling” or “complementary selling.”

How does it work? If a visitor is browsing cell phones in an online store, the algorithm may offer him a slightly more expensive model – thus increasing the chance of completing a more profitable transaction. If you run a car wash and a customer comes to your business to have his car washed from the outside, you can offer a higher package that also includes interior cleaning and upholstery washing. Online service companies also often use upselling – offer more expensive packages, enticing potential customers with discounts, priority service or a wider range of services.

Upselling is often handled by customer advisors at electronics store chains. People interested in buying a camera can be tried to convince them to slightly increase the amount spent in exchange for a better, more technically advanced model. This is particularly effective when the customer comes to the store knowing only that he or she needs a camera, but without having a specific dream model in mind.

When and where can this technique be used?


Importantly, upselling does not only apply to hypothetical sales. We can successfully apply this method to customers who already use products and services from our catalog. This is how Netflix, among others, operates, offering customers of lower plans the opportunity to upgrade to a 4K plan.

What are some examples of upselling?


Upselling can also be applied as early as the shopping cart stage – just because a customer has decided to add a product (for example, a TV) to his cart, doesn’t mean he is 100% decided. This is a good time to suggest that he change to a larger or more advanced model.

In sales conducted in a physical store, the salesperson plays a big role in upselling. However, the idea is not to offer the latest iPhone, which is several times more expensive, in place of a Xiaomi smartphone – such an approach will quickly alienate the customer, who will feel that the advisor does not want to respond to their needs, but only to upsell. The trick in dealing directly with a potential customer is to ask the right questions. If the customer is interested in an expensive consumer electronics or home appliance, a few more questions can draw a more detailed picture of the needs – this in turn will allow you to match the right product that will actually be more attractive to the customer, while not ruining his budget.

Summary


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