4 min read

Upselling is a sales technique that encourages customers to make a more expensive purchase by adding extra quantities or features, or upgrading a current or potential purchase. This can increase your profit and, if done successfully, your AOV (average order value) and CLV (customer lifetime value), ultimately increasing your revenue.

I will give you some examples: If you are a software company, you can offer your product for free or at a low price with basic features. Then, for upselling, you can offer a premium version with extra features. Alternatively, if you sell physical products, you can include a pop-up window with an offer when the customer adds a product such as ‘Buy 5 and save 20%,’ or inform the customer that the product is included in a bundle and that they will receive a free gift upon purchase.

You can implement up-selling throughout the entire customer journey. That is, before, during and after the purchase:

• Before the purchase: as soon as the customer enters your website or store you can create more value by using low-cost products as a bridge to more expensive items.
• During the purchase: On your product page inform your customer of different ways in which they can improve their purchase, or during the checkout phase where you can offer your customers added value to their purchases such as gift wrapping, express shipping, option to customize their product, etc.
• After the purchase: You can reach out to your customer by offering additional features, upgrades, premium access or extended support or warranty.

Tips for effective upselling

Consider your customer’s budget and purchasing power

If you set prices too high, it can damage your relationship with them. Avoid offering upsells that are significantly more expensive than the original product, as this can lead to customer dissatisfaction. Repeat customers tend to spend more than first-time buyers, so it’s important to retain their loyalty. This will increase your customer lifetime value and ultimately lead to higher profits. The goal of upselling is to satisfy the customer’s needs. Therefore, all offers should aim at customer satisfaction and building a long-term relationship.

Inform and educate customers about the benefits of upselling

Consider creating comparison charts to help them visualize the benefits of the premium version. To upsell effectively, offer subscriptions and incentivize customers with one-off discounts during specific times. Additionally, encourage upsells by thanking customers for positive reviews with discounts. That said, don’t be aggressive in the way you interact with them and know when to stop when they refuse to accept the offer.

Select your most popular and relevant products

Don’t try to upsell an expensive or niche product or feature. Instead, focus on core products that appeal to a broader audience. Targeting the right additional price is crucial. If someone buys a €50 product, you can add €20. But it is highly unlikely that they will spend more than €100 in total.

Implement your sales strategy by being active in your customer service. For instance, live chats can be an excellent opportunity to guide and incentivize users to purchase your products.

Ensure that the process of adding upsells is smooth

Upsells work best when they are subtle, requiring no more than one or two clicks. If it takes more than that, it can feel messy and complicated, which can discourage customers and give them time to have second thoughts. To achieve a frictionless experience, it is essential to choose the right tools. For example, on the checkout page, you can offer an upsell that can be added to the order with just one click. Do not overwhelm customers with too many options. The goal is to keep the process simple and subtle. Any additional options should be presented in a natural way that improves their purchase, rather than requiring them to analyze and choose among many options. Limit the options to one or a maximum of three.

Target the right audience and focus on returning customers

Returning customers are valuable because they already know your brand, trust your recommendations, and have had a positive experience. Customer retention costs less than customer acquisition. To motivate clients to upgrade, create a sense of scarcity and urgency by setting time limits on your offers.

Analyze your data and run tests

Data can assist in creating a stronger upsell strategy. Analyze customer preferences and responses to upsells, as well as which products they are most attracted to. Test various strategies from different angles to determine which is most effective. Conduct tests on similar offers and try them on a selected group of customers to determine which has the highest conversion rate.