Up-selling, a foolproof technique for boosting your sales
How can you boost your sales performance, in the field or online? Up-selling is a sales technique for increasing the average shopping basket of your buyers.
What does it mean? What's the difference between add-on selling andupselling? How do you put cross-selling into practice?
All the answers to these questions in this article.
What is upselling?
Up-selling: definition
Cross-selling is the practice of offering your buyer an additional product to complement the one already chosen.
Used in marketing and webmarketing, it's based on an opportunity effect: if the buyer is going to initiate a purchasing procedure, he might as well add an item to his basket.
For online purchases, it's a way of amortizing transport costs and the time spent on an e-commerce site, but it's also true in-store! It's a good time of year for retailers in all channels: it's an opportunity to generate additional sales based on a windfall effect.
The different types of upselling
There are three main types of additional sales:
- Complementary sales : as the name suggests, this involves offering customers a product that complements the one they wish to purchase.
🎯 Example: the pods that go with the coffee machine, or an extended warranty following the purchase of an electronic device. - Opportunity sale : the suggested item has a less obvious relationship with the one the buyer is initially interested in, but acquiring it enables him or her to take advantage of a "good deal".
🎯 Example: products on sale in your store or on your e-commerce site. - Targeted profile selling: more the prerogative of online sales, this method involves highlighting other items appreciated by profiles similar to the buyer's.
🎯 Example: the famous "Our customers also liked" selection of items.
Up-selling, cross-selling: what's the difference?
Up-selling and cross-selling are often confused. Yet the two techniques differ:
- Cross-selling is a proposal or proposals complementary to the initial purchase and consists in highlighting one or more products in addition to the first.
🎯 A n example of cross-selling in ready-to-wear: you're a fitting room attendant and offer advice, such as suggesting a belt to match the outfit, so that the customer adds it to their purchases.
🎯 Restaurant up-selling example: "With this foie gras, this wine is a must to bring out all its flavors." Hard to say no! - Up-selling this time is a proposal to replace the initial purchase, with the promotion of a product similar to the first, but of higher quality... and therefore more expensive.
🎯 A n example of upselling in the automotive industry: a move upmarket with a better ABS system for the same model, or simply the paint color, metallic gray, more expensive but so chic!
The advantage of upselling is to increase the average basket, while the aim of replacement sales is to improve margins.
The challenges and objectives of up-selling
Up-selling is a highly effective technique, because you take advantage of the fact that the buyer has already been won over by at least one of your products. As a result, you can boost your company's sales, while saving the cost and effort of prospecting and acquiring a new customer.
At the same time, upselling also has customer benefits. Not only do they benefit from potential bargains, but they also feel valued, as they are better supported and advised in their expectations.
And the disadvantages of cross-selling?
Cross-selling has no particular disadvantages. But you should proceed with caution. If you're too insistent and unsubtle, you run the risk of scuppering the initial sale!
Questions to ask yourself before offering an add-on sale
Which products should you offer as add-ons?
Would you like to implement a cross-selling strategy in e-commerce or physical sales?
Now it's time to work out the mechanics of your cross-selling scheme. The classic example is the shoe-shine box sold with a pair of shoes, or the tie and shirt pack offered with a suit.
These are products, but the same reasoning can be applied to services: faster delivery at extra cost, or an extended warranty, for example.
At what point in the purchasing process should I offer an additional sale?
In online sales, there are three areas that are ideal for cross-selling:
- the product data sheet,
- the shopping cart layer or the interstitial page between the shopping cart,
- check-out.
In-store, cross-selling can take place just as the customer is about to purchase the main product, when they are already well into the act of buying.
How do you upsell? 3 foolproof techniques
1/ Build on the product
Through your selection of associated products, you become a force to be reckoned with. It's all about getting it right, by proposing something that makes sense.
When compatibility issues arise, the buyer will gladly defer to your expert recommendation. Make sure that for a given printer, for example, the suggested ink cartridges are compatible.
2/ Based on the customer's search history
In e-commerce, you can also base your recommendation on more personalized criteria, derived from the customer's browsing history.
Knowing that a buyer has previously lingered over a particular product page is a clear indication of their interest in it. Suggesting it to them when they place their order makes perfect sense.
3/ Based on other customers' purchases
The third way to proceed is to observe the buying behavior of other consumers.
This method has long been used by Fnac, and works wonders with the typical add-on sales phrase: "Customers who bought this item also bought...".
This is an excellent way to refine your targeting based on meaningful behavioral analysis.
Specialized tools for your add-on sales
🛠️ Online sales
E-commerce platforms offer functionalities adapted to both cross-selling and upselling to boost your online sales!
🛠️ Physical sales
One of the best ways to generate additional sales is to offer additional, high value-added services, such as additional warranties or maintenance, following the purchase of a device. And preferably in the form of a subscription to benefit from recurring revenues.
To do this, it's best to equip yourself with a solution for managing subscriptions and recurring payments. Neovente, for example, has been specially developed to address the challenges faced by physical stores: the software is easy to learn and use, and includes all the essential functionalities (online contract edition, direct debit, overdue payment management, etc.).).
🛠️ For both
The use of CRM software, linked to marketing automation tools among others, has become essential, particularly for targeting and segmentation purposes, but also for sending personalized e-mail campaigns to encourage new purchases.
You now have all the keys you need to master the art of upselling. Now it's up to you!
Article translated from French