Upselling is a proven technique for improving the customer’s experience while at the same time boosting company profits. Successful upselling often consists of little more than asking customers if they’d prefer a larger amount of a product (for example, a large cup of coffee rather than a medium) for a better price. However, upselling also gives you the chance to:
- Sell additional related products, such as food items or accessories (fries with a sandwich, a side salad with a meal, or a case and charger for a cell phone).
- Sell customer peace of mind or assurances (service contracts, replacement guarantees or insurance).
- Sell education or instruction designed to improve the chances of success (coaching programs or access to exclusive members-only websites).
When looking at ways to improve your upselling programs, consider these four effective tips:
- Time upsells properly: Wait until the customer has made a commitment to purchase a product, then offer the upsell of additional items or improvements. Upselling before the customer is ready to purchase could ruin the entire sale.
- Ask what customers want: Talk to your clients to get a better idea of what customers want and the benefit they’re seeking from your products. This will not only give you the opportunity to provide more effective customer service, it will also allow you to identify other products and services that might complement what they’re after.
- Add value: The products and services you offer during upselling should always add value to the customer’s purchase. Make sure the upsell offerings complement the original purchase and that they provide a genuine improvement over the original product or service.
- Make the upsell offer reasonable: Don’t go overboard with the amount or cost of upsold items. Customers often have a price limit, and exceeding the cost of the original purchase by 25 percent or more could cause the customer to abandon the sale completely. Don’t make an upsell seem like a separate major purchase.
Do your upselling techniques need a boost? How can you put these tips to good use and increase your profits by maximizing upselling in your company?
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