Upselling is a sales tactic that businesses use to get customers to purchase add-ons to their services. This technique is a profitable marketing strategy because it helps companies generate more revenue. The upselling method is beneficial to businesses also since they generate 30% more profit from upsells, and it helps the customers save money long-term.
But how to effectively upsell new services to clients is a great question. Try out some of these helpful techniques for the next time a client needs to upgrade their service.
Sell Ideas Instead of Upgrades
Instead of approaching upselling as just another upgrade, think about how to help the client understand why they need to make another purchase. It’s always a great idea to sell a promotion when there is a need for it.
Clients don’t just want businesses to sell them something. They need to know how an upgrade can benefit their business. When offering a promotion, convince them with a plan. Try to point out the areas that will help them achieve their goals and use that opportunity to help them progress forward.
Provide More Than One Option
Growth Tools reports that their tier pricing accounts for 25% of their revenue over the last 18 months. When giving the client options, this is one of the best opportunities to upsell. An excellent example of this is where a company offers services in web design. The company can then provide at least three packaging options for the client to choose from, including:
- Basic package: Offering a one-page web design
- Standard package: Including a three-page web design
- Premium package: A fully integrated website
The important thing that matters is to set a goal for which package the company wants to sell most often. If the standard packaging option is ideal, ensure the offer contains better value than the basic package. Clients can turn away if they think the standard package doesn’t compare well to the primary option.
Upsell With Relevancy
When choosing to upsell to clients, it’s all about relevance. Too often, businesses tend to focus on their own issues at hand. They don’t take the extra time to worry about what changes they can make to improve the lives of their clients.
Selling with relevancy means keeping the buyer in mind. Think of what the customer wants by keeping up with the latest trends and learning how to curate the best experience.
Upgrade Upselling With Personalized Options
Providing options with personal recommendations work best since buyers are more likely to purchase an upgrade when a seller understands the buyer’s purchase history. To give sales generation a boost, examine data and gather intel on the latest selling trends. And utilize personalization within a bundling strategy.
A great example of this is where a finance and insurance (F&I) office assists dealerships in their success. They sell products and services like extended warranties, gap insurance, and product bundles to help the customers get more out of their vehicle.
Without the F&I department, the dealerships wouldn’t be able to help the customers save costs on a new or used vehicle without offering personalized upgrades on their purchases.
Understand the Client’s Needs
Gathering knowledge about clients helps businesses determine what types of services they can offer. When meeting with a client, ask questions that provide a way to understand what they want most out of the service.
When a company can gather this type of information, it can better serve its clients more efficiently. Understanding is part of the process of becoming successful at upselling. Once the opportunity arises to upsell, companies won’t have to push the services because they understand how the offering benefits the buyer in the long run.
Incorporate urgency when the opportunity arises to upsell. This method creates a need for an item when there is only a limited amount of time to purchase. For instance, businesses can increase their revenue by 9% using a countdown timer in an email offer or landing page.
If buyers see they have the time to make a purchase, they often wait for the right time to buy. However, if a client knows they are going to run out of time before a special offer ends, they’re going to view this as a valuable opportunity.
Use a Strategic Pricing Strategy
The magic of upselling comes from the practice of creating a price point that customers can use during the decision-making process. The idea behind this strategy comes from the human perception of pricing.
Consumers might view a package that looks expensive or too cheap. But when comparing an alternative that falls within the middle, they feel they are getting the best value out of all three choices.
Aside from creating several options, businesses can also choose to implement another strategy. Comparing prices against other competitors has its advantages, too. When a company compares their pricing to other competitors, they convince its buyers to make a purchase. However, the offer must be clear enough that they understand the features they are acquiring.
Attach Proof to the Offer
The best method to sell any product or service is to show the client how the offering works. Consumers are more likely to upgrade when they are keen on a service that appears it’s worth it.
An excellent idea for proving the worth of the upsell process is by applying consumer reviews. Companies also use this strategy for clients by sending them additional information, including statistical data that shows what the upsell is worth.
This strategy suggests that other clients are happy with their purchase, so why wouldn’t the offer be beneficial to a potential repeat buyer as well?
Be Transparent About Pricing
Providing transparency within the pricing tells the client exactly what they’re receiving. When offering an upsell, businesses can present a complete overview of the features inside the packaging.
Break it down so that the package shows the timing and explains how the costs work. Clients will take comfort in knowing everything that is involved in the process.
Time an Upsell at the Perfect Moment
Timing an upsell at the best moment is not as difficult as it may seem. Once the client achieves an initial success the first time around with a service, this becomes the perfect opportunity to have a conversation about future assistance. Asking them about their future goals leads to new ideas for what to offer next.
Upsell an Offering to the Right Clients
Upselling to the right client means understanding who has an actual need for a service and tying that into the offering. After a seller identifies who can benefit from the service, this is where the opportunity comes in.
Focus on what the customer wants but find evidence that supports a potential gap in their current services. After discovering the evidence, this is the moment sellers can pitch to their clients for an upgrade in their services.
Help the Customer Feel Comfortable
The best sellers go out of their way to make the client feel as comfortable as possible. The effective way to approach this is to be attentive to them, take care of them by offering advice, and address them by name. It’s the little things that make the business go a long way.