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What is an upsell and how can it boost your business?

What is an upsell and how can it boost your business?

Business and sales go hand-in-hand — but there’s one type of sale that costs less to secure and can significantly boost a business’ bottom line. Upselling means encouraging customers to buy more than they originally planned, often by adding discounted add-ons. But is upselling a good fit for your business? What can upselling mean for your business?

First, upselling requires balance, or businesses can scare off customers with higher prices. Done wrong, an upsell can leave customers feeling like the deal had “strings attached.” But, done well by you or your staff, upselling can boost sales and help turn first-time customers into long-time customers.

Upsells should be discounted products related to the original purchase, suggests entrepreneur Neil Patel. Without the discount or another compelling reason to add the other product or service, customers may just opt to wait since they weren’t planning on buying that item. A discount encourages the customer to add the product now instead of later and can help avoid the “strings attached” feeling.

Keeping the second product or service related to the first is also important and works well with items that are typically needed together or wanted together. A print shop, for example, can also sell custom framing to finish off that print. For a service oriented business, a wedding photographer can offer engagement photos as an add-on or offer discounted anniversary sessions for previous customers.

Some upsells are completed during the purchase — like when you buy from an electronics store and they ask if you’d like to add a warranty. Other businesses approach upsells after the actual sale. For example, an online store can send customers a coupon immediately after their order, with a deadline to use that coupon to add to his or her order before it ships. Emailing customers after the sale with a special offer, related to the item they just purchased, is another form of upselling that can also be successful for many different types of businesses.

Another form of upselling isn’t an odd-on product, but encouraging customers to buy a higher-end product then the one they originally came to the store for. Discounts can help sway customers here too.

Upselling is favoured by businesses because it can help turn customers into long-time fans and boost the bottom line. However, your business needs to approach the upsell appropriately, or customers could be uneasy about even the original intended purpose. With a focus on discounted related products or discounted upgrades, however, your business can successfully create an upsell program that benefits both your customer and your business.

What are you waiting for?  PLAN and implement..