WHAT IS UPSELL AND HOW IS IT USED IN BUSSINESS?
Often companies start using marketing to attract new customers and stimulate sales. However, you should not forget about your existing customers, because attracting a new customer is more expensive than retaining a current one. One should keep this in mind when it comes to increasing revenue. Upselling is one of the methods of achieving this.
Upselling is a sales method by which companies offer their customers more valuable and more expensive products. By showing customers that other versions or models can meet their needs, retailers can increase average checks.
Let's look at this method using a common example. If the customer is thinking about a single scoop of ice cream, a double scoop will definitely satisfy them. Upsell works to fully satisfy the client's needs.
Why is upselling so important?
When we hear about various methods to increase sales, what comes to mind are arrogant salespeople offering unnecessary and overpriced products. However, in reality, sales methods should be focused on satisfying customers and building long-term relationships with them. Successful upselling is based on understanding your customers' needs and making the buying experience more enjoyable.
Customers are often eager to get the best deal and are willing to spend more money for the value they want. Even though the customer will spend more, they will receive an improved product or service that you offer. Let's take the example of an airline using the upselling method. Although a business class ticket costs significantly more, the passenger will receive a much more comfortable flight than if he saved money. If done correctly, upselling can help improve customer satisfaction.
Providing customers with better alternatives will improve their customer experience. This will make your customers more loyal and therefore more likely to make repeat purchases.
How to use upsell for sales?
1. Research your customers first. Find out their shopping experience: did they find everything they needed, are they satisfied with your product or service, would they like to get a better deal?
2. Offer relevant products. You should understand what your customer needs, not just impose some products. For example, if a customer wants to buy oranges, try to sell them sweeter and better quality oranges rather than trying to convince them to buy pineapples.
3. Give a comparison. A side-by-side comparison of entry-level and premium products helps customers clearly understand the value of the latter.
4. Offer discounts and bonuses. If your customers aren't buying a product because it's expensive, try to give them free shipping or a one-time discount. Cash incentives always work.
5. Be honest and transparent with clients. If you are satisfied with the quality of your products and receive positive feedback, don't be afraid to offer the best to your customers. But remember that the high price must be justified and understandable to the buyer.
With the right sales techniques, you can increase the revenue of your own business without additional costs, as well as improve the satisfaction of your customers. Just remember that your customer's needs must come first. Strong relationships and trust are key to increasing sales.