Stop Losing Money! Upsell!

In quite simple terms, upselling is the art of persuading a person, usually a customer to buy something additional or something that is more expensive.

The upselling technique is aimed at inducing a customer to purchase items or upgrades that are more expensive in a bid to make a more profitable sale. The convention is that more profitable products or services are marketed, but upselling could mean exposing the customer to other options that although are more expensive and were not considered by the customer in the first place.

Why Is It So Crucial For a Company to Do Upselling?

There is the tendency that the sales technique can induce a feeling of negativity in the hearts of customers, but the key to a great shopping experience is when the sales technique employed is done right. If you own a company and you want to make significant profits and get better-satisfied customers, then you need to up your Upselling game. Here are a few reasons why Upselling is so essential for companies:

• A customer is happier with a retailer that cares than the one that wants them to purchase a good or service and leave. Upselling helps build better relationships between retailers and customers. The focus of Upselling is to help the customer win. By suggesting upgrades and better choices.
• One of the very important reasons why companies need to Upsell is that it is way easier to Upsell to existing customers than to new customers. Generating new leads is way more expensive than leveraging on the chance you have as a salesperson with someone that already trust your product.
• Upselling is one of the most effective ways to turn customers into very profitable customers and keep them coming back for more. Upselling increases the net profit contribution a customer makes to your company. This is called Customer Lifetime Value. Customers can be split into three categories, not-profitable, profitable, and very profitable. Upselling will reduce the number of non-profitable customers and make them either profitable or very profitable customers.
• The value Upselling adds to what the customer buys makes them come back for even more, consequently increasing the sales and profit of your company.

Why Should A Salesperson Do Upselling?

The simple answer to this question is to boost sales revenue and ensure a happier, more satisfied customer.

What is the process of Upselling, at what stage is it better to do Upselling?

There are three ways by which upselling can be done effectively, and they include:

· Before purchase

· During purchase

· After purchase

Upselling to someone that just walked into your company for the first time is not the most fabulous idea; it is a dumb one in fact. The natural defense system of that person will just be awoken, and they will feel you want to cheat them. The right time or the right person to Upsell to is a repeat customer. The trust in the goods and services rendered by your company must have first been built before Upselling to that customer.

What is the difference between upselling and cross-selling?

Upselling is the art of persuading a person, usually a customer to buy something additional or something that is more expensive. While cross-selling involves a salesperson making suggestions on additional products a customer can buy. Cross-selling involves offering more services to an existing customer, while upselling involves enhancing sales by describing features of a new product.

Conclusion

Understanding the customer’s needs is tantamount to carrying out Upselling successfully. Making the shopping experience more enjoyable for the customer is a key factor that will make the customer more interested in the upgrade you are suggesting. Upselling aims to help your customer win, and it should not just be a sales tactic to increase sales and profit. It is helping your customer win so that as a result, you too can also win.