You’d have probably asked yourself, “Why is upselling good for my business?”, for the umpteenth time without a satisfactory response.
Perhaps you don’t even understand clearly what people blab about when they say Upsell and Upselling. And that’s why you don’t add it to your business strategy.
Not until a few weeks ago did I understand clearly what Upselling, Cross-selling and Downselling meant. Then, I was so filled with the euphoria of understanding their meaning and decided to share with you.
However, I’m going to be focusing on Upselling for today. Later on, we’ll discuss Cross-selling and Downselling. Finally, we’ll wrap up with a comparison among the trio.
What is Upselling?
Now that we have been faced with this question, let’s get over it shall we?
What in the whole wide business world is Upselling?
Oberlo says, “Upselling is a sales technique aimed at persuading customers to purchase a more expensive, upgraded or premium version of the chosen item or other add-ons for the purpose of making a larger scale.”
That’s it. That’s the long a** definition of Upselling that you’d probably forget if not for my simple definition which states,
“Upselling is a clever way of collecting more cash from your customers in exchange for more value politely.”
le simple. I’m good, aye? But now that we have been able to discuss the term Upselling, let’s talk about its importance in your business.
Why is Upselling good for my business?
Before you find out the reason, you need to understand that Upselling works for both online and offline businesses. A lot of people fear all these tech words are for online businesses or ecommerce.
The only difference between online and offline businesses is the location—one is on the internet and the other isn’t. With that in mind, let me list the top three (3) reasons why Upselling is good for your business.
- It helps you build stronger bonds with your customers
- It’s stress-free to upsell to retainers than to new ones.
- Customers come back for more – yippee!
Now you can close the tab and run along to Upsell to the next customer that stops by. (don’t do that or I’ll cry)
Or, you can read on and find out how Upselling applies to each bullet point and how to keep your customers.
1. Upselling helps you build stronger bonds with your customers
Think of Upselling like this. A way that you can help your customers by providing them with more value in exchange for a few more bucks. You win and they most certainly win. By adding premiums like Netflix does with its subscription plans, you make them feel good about themselves and they’ll definitely subscribe. That’s an evident plus to you.
2. It’s stress-free to upsell to retainers than to new ones
Even I am not yet an expert in lead generation but I know that it is a whole lotta work. It’s way easier to upsell to the customers that already trust you than the new ones who don’t know a pickle about your brand.
Research from Altfeld says that the probability of selling to an existing customer is 60-70% while that of a new customer is a low 5-20%. You can tell that you’d make more profit upselling to your retainers.
3. Customers come back for more – yippee!
Be honest with yourself.
If you hired a web developer for your blog setup and he added an option for designing a logo for you at a reduced fee, won’t you quickly pay him with so much joy?
I mean, he is relieving you of the stress to find a graphic designer for that – except you’re a graphic designer -and you’d definitely rush over to him when you need him again.
Why? Because he did a good job of leaving a good lasting impression the last time you guys worked together.
That’s the thing with upselling. If you get it right the first time, you’ll never regret it.
Take a look at the examples I got from Amazon and other ecommerce brands demonstrating Upselling.
Examples of Upselling
Can you see that they added related items to the hoodie I searched for? This will enable you to see other hoodies that might appease you. Do you see the strategy there?
Here, you have the company’s recommended plan, which is Standard, and an Upgrade – Premium – and Downgrade – Basic – option depending on your choice. What you stand to gain is clearly stated in all plans for you to decide. All these are examples of Upselling practised in eCommerce.
This is just like the plans of Netflix, but it is also applicable for freelancers in any niche.
I hope you’ve understood the concept of Upselling with this short guide.
We spoke about:
- The meaning of Upselling
- Why Upselling is good for your business
- Examples of brands that use Upselling
Next time, we will be discussing Cross-selling and the difference between cross-selling and upselling. Till then!