I have been up-sold!
The salesman of my local gadget store up-sold an iphone 7 when I went to buy a different branded smartphone. That actually happens when we want to buy something pricy high-end products. It is called up-selling.
Upselling is actually not that bad as it sounds. It is a great sales tactic salesmen apply when customers purchase some high-end products like cars, laptops, smartphones or other electronics. In ecommerce Upselling is the best way to sell updated products to existing customers.
If you are already in ecommerce business you know how much it is tough to convince a new prospect to buy your products instead selling products to existing customer is much easy. To maximize your revenue you have to sell maximum number of products and that’s why you need to adopt various techniques to increase your sales.
When you Up sell products that means you are giving an updated similar product option to your customers when the purchase or already have purchased their desire products. Up selling is mainly better for expensive products.
Up-selling or Cross selling?
People most of time get confused with these pretty similar terms Upselling and Cross-selling but in real they are not the same technique. Both Upselling and Cross-selling is a great tool to sell products and to grow your ecommerce business but when done wrong they may backfire. Let’s have a look at each of these techniques-
Upselling is a marketing and selling strategy where sellers try to sell more expensive version of a product that the customer is buying or already has. It is kind of product recommendation at the time of checkout or after the purchase of the products where customers are guided to purchase something related to their purchase but have a higher price. For example, if you are buying an active noise cancelling headphone and the salesperson persuade you to buy that one which has Bluetooth function or other features. That is up-selling.
Upselling products generally tend to be more expensive as they have more and updated features. Ecommerce owners try to up-sell products to maximize the price value and often it works.
The Apple store has utilized the art of Upselling. They show various updated options for their MAC laptop when customers check the details.
Cross selling is similar to Upselling but not the same. Cross-selling is when you give customers other product options for their purchased products or what they want to purchase. Cross-selling is mainly perfect for less expensive products. For example, if you are selling mountain bikes than you can cross sell bike’s tires, grip or seat from your store or from others.
While Up-sell is perfect for expensive products, cross-sells works best for lower-priced products such as Phone case for mobile phone or customized key-chains with bicycles. Cross sell products generally tend to be more accessories types. For example, if you just purchased a camera than you will be interested to purchase a lance or cover for it.
Why is Upselling important?
When done right, upselling increases revenue and profit. Upselling is the best way to drive sales by selling products to same customers. Upselling drives more than 4% of online sales and it performs 20 times better than cross-selling when you use it on your product page. It is not just only boost your sales and revenue but it also increases customer’s experience.
How to use Upselling in your store to increase sales and revenue
Let’s have a look to the most effective ways to increase sales and revenue by upselling-
First you have to categorize all of your products according to their price value and demand. Categorizing products for upselling helps you to track down the most expensive and precious products to Upsell. It also beneficial for small business to track down the products which need to be on sale and it also helps the business owners to determine which product needs to be more attention.
Create a spreadsheet and put your all products according to your criteria such as price, category, luxury or upgrade. For example, if you sell women jewelry then you can list all of your products according to your spreadsheet list and you can define a product if it is luxury or upgraded version. From this list you can easily find out the potential upsell products which are in luxury or upgrade column for future upselling option.
The ultimate rule of upselling is offering extra value to your customers. While you are upselling that means you are providing additional value to your customers without cutting down your revenue. You can still win the bait by offering higher value that is worth the extra cost of your service. It is a win-win situation, but when done right providing this additional value can increase your revenue.
Make sure your upsell doesn’t annoy your customers. Offering too much can hurt your business. Customers may not appreciate your offerings of extra value if they don’t need them. So try to understand what level of value can make your customers to purchase any products and then mark it as a standard.
Upselling through featured products is better than typical promotions and it highlights products based on criteria that you define.
Featured products are products that are showcased on your site to attract your customers. It is kind of advertisement of your products, showing them to customers according to their special features such as “best seller” or “seasonal offer” or even “back in stock” tag. Featured products category not only draws attention but it also offers more flexibility by allowing you to select which products to display.
And when you upsell products through featured products it allows you to sell more similar and upgraded products by displaying them with your regular products. So you don’t need to set any other upsell offers and deals. Upselling through featured products is also beneficial for launching new products or sometimes promoting new business.
Offering products for upselling may not work always as excessive and unorganized upselling can affect your core business. So offer non-product upsell to your customers to bring them back to your store.
Offering non-product upsell such as free and fast shipping, great warranty, free return or partial refund is always helpful to retain customers. Instead of upsell products directly offer product related services to gain the predicted revenue. It is not wise to use frequent upselling as customers can get annoyed with your offering something that they don’t need. But who doesn’t appreciate extra service? Offer them product related services and tell them why they should buy your product.
For example, instead of selling products for their upgrade features sell products for their fast and free shipping and easy return.
Non-product upsell is helpful for selling over-stock products or products that have much higher updated version.
Emails are the best way to upsell products. Many leading ecommerce store owners often organize upselling email campaign for selling their products. Emails that contain upsell offers often get the highest open rate than other promotional emails. Again upselling through emails are great way to recover abandoned carts.
Set your email campaign for upselling products and if possible adopt automation to send automated upsell emails to your existed customers and to your target- customers.
Personalized product recommendation emails are great to predict the future sell. Once a customer buys something from your store, you can send him/her a product recommendation email to convince him/ her to buy that product in future.
Sending personalized email to recommend any product helps to retain your customers as well as make your new customers as repeat customers.
You can either create such emails by generating algorithms by yourself or can adopt email automation system to generate automated emails to save times and money.
2. Upselling offer emails for recovering carts.
The great way to make a new prospect to your customer is sending them upsell offer emails whenever they leave behind your carts.
Sending upsell offer emails is a great tool to recover abandoned cart where abandoned cart is the great conversion killer in ecommerce. When customers leave your cart behind or leave your site without completing the checkout, send them a upsell offer to complete the checkout process.
You can offer discounts, non-product upsell to recover the cart. It is better to maintain the sequence of cart recovery email campaign which starts with simple reminder and ends with such upsell offers.
The most commonly used method of upselling product is upselling in cart. It is because most of revenue you can earn from selling something that are related to which your customers are buying or about to buy from you.
Various leading ecommerce brands offer upsells in their shopping cart to convince the customers to buy the upgrade version of what they are selling. Upselling in cart helps to maximize revenue as well as to bring back your customers.
Customers who are visiting your site or adding products in their cart are ready to buy something and this is the right time to take the turn. Customers are ready to buy and you are ready to sell with lots of products. So why not some extra sales!
Do not just answer your customers’ questions in chat. Leverage customer care service to upsell your product and product related service and make money!
Customer care or support is regarded as the backbone of any ecommerce business operation. Your customers often need to contact with you for their answers and information related to your products or what you are selling to them.
Before ending your live chat or off-line messaging, offer them your recent upsells. For example, at the end of your chat with your customer of answering his question about shipping process and fees, offer him free shipping upsell on purchasing products from your store.
Timing is a very important variant in ecommerce and you need to take good care with timing of your actions if you want to win the game.
As I mentioned before that selling to existing customer is easy than selling to new prospect. Maintain time to sell to your existing customers and to make them to buy your products is hard. All you have to do to know the right time.
Many ecommerce businesses have complained that they could not get much from product upselling though they offer great options for their products. The reason could be the evolving nature of ecommerce. But the biggest reason of this is lack of knowledge about timing and many brands fail to determine their focuses.
To get the most out of it, define the value of your additional service and find out if it is relevant to them. Then demonstrate to your customers why they should purchase these upsell. Once you get succeed, it is better to focus on timing as success of upselling depends on it. For example, do not sell an updated version of laptop to a customer who already has one.
Shopify provides various free and paid upsell plugins which you can use to add upsells in your ecommerce store. Some of them are-
There are lots of other methods to use upselling to increase revenue. You can either use upsell in your store manually or can use plugins. By both ways you can maximize your revenue from sales. Upselling can be a great tool to increase sales and to retain customers if you use them properly. So learn the techniques and split test before using them or if possible hire a developer.