We shouldn’t be afraid to offer our customers more than they originally asked for. Sometimes customers don’t know that a premium product or service is available, or they may need more information to understand how an upgrade or package is a better fit for their needs. Would you be offended if a ticket office clerk at a train station offered a first-class upgrade for £5? No. You can take it or leave it depending on your needs. Upselling is giving a customer information they may be grateful for.
At The Web Designer Group, we help implement effective upselling strategies on your website and in your digital marketing. Good web designing should naturally incorporate options for customers that will result in increased sales.
There are two main considerations when using upselling tactics to increase revenue:
- The services or products you upsell should be related to the original product/service
- You need to be sensitive to the anticipated price range of your customer
Once a customer has an anchor price in mind, they may not be enthusiastic about a higher price point. The product should fit the customer’s original needs and the customer should fully understand the benefit of the higher cost alternative. An anchor price is often the first number a customer sees, and it’s the number against which they compare other price points. Only upsell if a new product is a discernibly better fit than the original and worth the additional cost.
Not every customer is a good fit for an upsell, and you shouldn’t try to push additional products or services on someone who doesn’t need them. Turn into a sleazy salesperson and risk losing the customer’s original business. As a rule, if you can’t explain how the upsell will benefit their overall goals, then it’s not an upsell worth pursuing.
If you run an ecommerce business, you probably incorporate upsells already. Whether in a ‘buy one get one half-price’ deal, a dropdown on the product page offering personalised enhancements, such as engraving, or being offered gift wrap at checkout. Almost every website features upselling on product pages in the ‘you might be interested in’ section, or ‘other customers bought’. If you don’t already offer these, talk to your web design team about incorporating them.
Don’t forget that impulsive buyers are likely to say yes if you offer something at the point of payment. This works for ecommerce stores and for B2B services. Think of company which sells office cleaning services. Just as you agree a deal for regular cleaning, they offer to throw in a special deep clean on the first visit at 50% off. It’s tempting and very likely that you’ll say yes.
Upselling could easily net you 20% in additional revenue each year. Imagine what you could do with that additional 20%. You could spend it on PR or paid ads to generate even more revenue.
The bottom line is that upsells are ethical and expected business practice if done correctly. Remember that upsells must answer the customer’s needs and help them achieve their goals. If you aren’t incorporating upsells in your business, then you’re leaving money on the table for every sale you make.