Upselling is a skill often neglected in sales. However, incorporated well into your sales process it can make a huge difference to an organisation’s balance sheet.
In simple terms, upselling is persuading a customer to buy something in addition to what they currently buy from you or possibly upgrading to a higher premium product or service.
Used properly, upselling can actually strengthen your customer relationship, while bringing you more revenue, and retention of customers.
Before we discuss this in more detail, clarity is needed as often people use upselling when what they really mean cross-selling.
Upselling is a strategy to sell a more expensive product that the customer already has (or is buying), or to add extra features or add-ons to that product. For instance, if you are buying a laptop with 250 GB and you are then offered one with a bigger memory or an extended warranty, that’s an upsell.
Cross-selling is a way to sell products that are different, but possibly related to the product the customer already has (or is buying). If I’m buying the laptop and I’m offered an external hard drive, that’s a cross-sell.
Essentially, both do the same thing, which is to help the customer get more value from your business, and assist your business in getting both loyalty and revenue from the customer. So bearing this in mind and to help with clarity, let’s call both of these tactics upselling.
Upselling isn’t just a sales gimmick it can help you build deeper relationships with customers by delivering more value.
It’s also worth pointing out that the probability of selling to a new prospect is between 5% and 20%, whilst the probability of selling to an existing customer is a whopping 60-70%.
However, if you delve a bit further, those figures make good sense. After all, we are all more likely to buy from a company we already know and trust than one we’ve never done business with before.
Experts believe as long as the cost of upselling is low companies can accelerate time to profit by upselling and upgrading current customers, when so many companies focus all of their efforts on getting new customers, when the best opportunity often lies in making existing customers happier and selling more to them.
There are many upselling techniques out there, and of course they depend on your business and your customers.
However, whatever business you are in, make sure you realise that upselling is a great asset for anyone in sales and customer service, because it can help you be more successful.
So wait no longer. Think about how you are going to do this.
Start by getting your sales team to look at your current client base, your products and services and see how you can sell more.
It will take a little time to begin with, but we promise it will be worth it when you see all those extra sales coming through.