As a business owner, you're in a business to expand your customer base and boost sales. To pull this off, you need to reach out to many prospective customers by using strategies that entice them to your business.
One of the many ways you can ensure your business is gaining the attention of your customer base is by using upselling strategies. Upselling is a sales strategy that can convince customers to purchase more products at a higher price point. Businesses that understand how to implement upsells so that customers can increase their cart values are well on their way to boosting sales and conversion rates.
With larger-sized companies utilizing upselling, smaller companies have been falling behind on these upselling strategies. With too few sellers taking advantage of upselling, there is a massive amount of opportunity for business owners to learn how to use this strategy so they can grow their business faster. To increase your sales, you need to help your sales team learn these skills to maximize the potential of their existing customer base. Here are the top upselling strategies that all sales teams need to know.
Upselling is about getting a customer to purchase a higher-priced version of something they already have brought before or have agreed to purchase. Some examples include premium memberships, a broader range of work, or a product built with better-end materials.
As great as it would be to have your customers purchase a ton of products from your business, overwhelming them can scare them off. Offering them too many products or services will backfire by making them confused and weakening the customer's attention. Your sales reps need to be aware of limits when upselling to customers. They should only present them with a couple of items that grant the customer obvious benefits. As they continue to interact with the customer and develop a long-standing relationship, the opportunities to sell more products and services will increase over time.
Showing your customers some of your latest products on your site is all well and good, but it’s another for these existing customers to follow through and purchase something. They have already decided on what they are going to buy, so they may require an incentive to push them towards an impulse purchase. If you decide to use the checkout screen to share your upsell opportunity, customers have already inputted their payment information, so they’ve positioned themselves into buyer mode. You have succeeded at convincing them to make an initial buying decision, but now you need to get them to spend a bit more, do so by sharing an exclusive offering.
The upsell offer, combined with products your customer already seems to enjoy, makes the purchasing decision smoother. The reason for this is due to customers already getting what they need, and they already trust your business. A special offer also boosts your chances of increasing sales. For instance, if the customer's cart value is $40 and they are offered an option to save an extra 10% by upgrading to a sizable product, customers are more likely to spend a bit more to acquire it.
Relevance is essential when you're deciding on your upsell strategy. If someone is purchasing a book on real estate, there is no point in recommending books on engineering. Instead, you need to recommend items related to what they are looking at, such as the audio version of that book or another book written by the same author. During the upselling process, you need to sell the benefits of upselling and show why it is critical. That type of customer education can assist with making future sales.
Most of your customers browsing your site's product pages are conducting their research. They are taking their time to research your product's features, availability, and price. To make this process easier for them, show them more than a single product.
It’s an approach that is ordinarily seen in Software as a Service products pricing pages, where they can compare various service packages. Although, this method is also the most efficient way to upsell opportunities early on the customer journey. By providing your customer with more than a single option of the same product on the page, customers can make a decision faster and eliminate the need to switch between multiple pages or tabs. However, these comparisons should depend on the type of products you are selling.
Take the time to analyze your most popular pages where your team can convert the customers and integrate upsells on that page. The choices will vary depending on your business, but it could be the checkout page, landing page, home page, product page, or even your blog page. Based on the analysis you conducted, you can segment your sales strategy. Several tools can be used to analyze which of your web pages are engaging with your customers and offer upsell opportunities there. They can also show the impressions where every one of your customers has reacted to the offerings.
Tools such as Hotjar and Google Analytics can provide you with a click-through rate, conversion, and well-defined report based on a visitor's geographical location and demographic habits of the pages. It should be noted that it doesn't always mean that if a page is converting well, that your upsell offerings are also doing well. So your team needs to wisely decide on whether a particular page is suitable to upsell offerings or not.
As your team gets to know the customers better, they need to figure out what they are searching for and what they are buying. Doing so provides you with the ability to match them with products that would hold their interest. For instance, if a sizable segment of customers frequently searches your shoe product pages, use cross-sell or add-on to provide them with additional products that are relevant and match their search and buying patterns.
Bindles are also another excellent option to showcase your product and match them with your customer's preferences. However, offering them too many choices to add to their cart can overwhelm them and make it harder for them to decide on which item to add. For this reason, offer bundles of your products that are higher priced but make it possible for customers to gain everything they could want.
Most websites these days tend to have a show product suggestions bar. Based on what the customer is searching for, they are shown a list of similar products. It is typically categorized as “Product Suggestion” or “Customers also searched for,” and the idea here is to make customers spend a bit more. Tools such as BigCommerce offer you a way to decide on how you will display your inventory and manage your overall sales.
Language is an essential part of pitching your wares to potential customers successfully. It should connect with your customers, who can link with your products or service you are offering to upsell. When you are offering to upsell products, explain to the customer the benefits of the products. Such as how it will assist them if they purchase the item because as the seller, you should know the features of the products, and how it helps the average users, that is what you need to inform them on. However, make sure you are using more simplified words when possible to explain the benefits of your products. Just because your technical term is related to your product, that does not mean every customer will be.
Urgency has proven to be an effective way to cause your customers to convert. By adding gravity to a product, your customers are more likely to buy and increase your revenue. According to a survey conducted by CXL, they discovered that including the urgency to a product page can increase revenue by 27%.
Urgency is a factor that gives business owners the capability to receive what they want from their customers. Including urgency develops a fear of missing out (FOMO) among customers, which convinces them to instantly purchase the product they were considering buying later. It’s also possible for your team to implement urgency within the upselling strategy. The only thing you need to do is include a timer on your upsell products. The timer can also be for a unique discount offering or as an out-of-stock reminder.
If the products you're upselling are valuable enough, users are more likely to purchase along with their initial purchase, for the most part.
Chances are, some of your customers did not purchase an additional product during the checkout process. If that happens, there is still a chance for you to upsell them. Send out an email later to revisit the proposal you shared with them at the checkout process. The email you send them should include a limited-time offer for customers who purchased something recently and are potentially interested in a sale currently being run on your site. Share top picks to entice your customers in coming back and searching for through your product page once again.
The follow-up emails are also applicable to your abandoned cart campaign. Share the products already inside their cart in an attempt to have customers purchase them and include a product recommendation that is also an upsell.
There is going to be a time when you run out of stock for some of your products. So, what do you do in this situation when the upsell product does run out?
Replacing it with an apology message is viable, but it shows how amateurish your company is, so instead, offer your customer an alternative solution. After all, customers don’t care if you run out of a product. If you have not set up a backup plan, your conversation rate may suffer.
For this scenario, you need to have your sales team prepared to offer an alternative product for upselling. For example, you could include multiple products as an upsell product which is then presented to the customers. So if one of your products is currently unavailable, other offerings will be in place to ensure your customers pay more than they originally intended to.
Upselling ensures your existing customers continue spending more on your products. While you are offering them some sweet bonuses, they, in turn, continue to fatten your revenue. Doing so generates that income you need to continue growing your business and has the customer return for more valuable products and offerings granted to them by your brand. Take the time to have your sales team go over these strategies and make sure they implement them into your funnel.