As a seller of a product or service, turning to strategies such as advertisement, promotion, and special offers is known to be one of the most effective ways to grow your customer base and increase sales. However, the upsell strategy, which is one of the fundamental marketing strategies of a lot of businesses, is another valuable option. In this article, we will explain in detail what an upsell is and how we can make use of an online upsell strategy.
Upselling is making your customer purchase an over costing product than what they were planning to. It is one of the fundamental marketing strategies of many different business models from physical stores to e-commerce and SaaS. This is a sales strategy with a high return rate and profitable sales.
According to studies on customer acquisition; while there is a 60% - 70% chance of making sales to already existing customers, this probability drops down to 5% - 20% in new customers. In addition, when the fact that product recommendations make up around 10% - 30% of the income is considered, offering the right products to the right customers at the right time is a vital sales strategy.
Upsell strategy will help your customers make better purchasing decisions. And this is important in terms of making your sales more profitable. With upselling methods, you can offer a personalized shopping experience to your customers. This experience strengthens your relationship with your customers and their loyalty.
Your customers who are satisfied with the upselling strategy can ensure obtaining new customers and you can widen the good reputation of your brand. However, there are some important points that you should consider when developing an upsell strategy. These are:
Upselling encourages customers to level up. In order to do this, you should organize your catalog using different pricing ranges, capacity, or power. Using this in the online sales process is relatively easy and effective. For instance; computer sales representatives are the best example. Computers are divided into various groups in accordance with the user type and in particular while the user type changes, the prices go up. A higher layer always means higher prices. Classifying products by different layers help you convince your potential customer to believe that they are paying less by buying more.
The free shipping method is a relatively old technique. However, it is a proven technique and still does work. The results of retail research show that 9 out of 10 consumers find free shipping as the main incentive to shop more. But how can we use this in upselling? At this point, you can remind your customers how much more they should spend in order to qualify for free shipping. Thus, the customers will be encouraged to add more to their cart.
These days, most online customers carry out research before making a final purchasing decision. Within this scope, they compare the prices, features, customer comments, and functionality of the product. You can make this process easier for your customers and turn this into an upselling strategy.
Make your potential customers compare prices by showing them more than one product at the same time. Show customers different products and their main differences. This way you can make sure that you are making additional sales by explaining them more easily without having to click on more than one page.
One of the most widely used methods in online sales is recommending customers products similar to the ones they added to their cart or searched for. This method directs customers to purchase more products or to discover and purchase the more expensive product. In addition, providing these recommendations in a personalized way will strengthen the upselling strategy. The probability of customers purchasing from brands that are using personalization methods is much higher and recommendations work better on a personalized level.
Language is an important factor in all areas of marketing. However, when you are aiming to do more sales, convincing your customers is a lot more important. Some of the best sales examples are by getting visitors to imagine how they can make use of the upselling or by triggering the fear of missing out (FOMO). According to a study this method was psychologically proved to be a helping method in making more sales. By writing down differences between two different products in comparison you can easily direct your customers to upselling.
Research shows that customers who are a part of a membership program, spend 67% more money when compared with customers who are not. Therefore, this method should definitely be in your upselling strategy. Use membership features in your online sales and encourage your customers to become members. Provide different special offers to your customers that will help you upsell when they become members. For example, when a customer joins the membership program and spends $200 or more will receive a gift each time. This way, these customers will always be searching for more products to purchase. Thus, they will be meeting the minimum purchasing amount and will be purchasing more. In addition, since giving customers the opportunity to see what they like will increase the probability of accepting your offer, you can provide them with different options so that they can choose the gift they like.
The steps that we have mentioned all throughout the article will help you increase your upselling. Supporting these methods with conversational sales will have a positive effect on your upselling. With conversational selling, you can better communicate with your customers and support your upselling. If you are wondering how you can include conversational selling in the upselling process contact Botgate AI now and start increasing your upselling!