Imagine you are at a cafe, ordering a cup of coffee. The barista tells you that there is a better roast for your beverage that costs only fifty cents more. You decide to give it a try. That is upselling. Now, we run into situations like these all the time, but it’s not always easy to figure out how to do it for your own eCommerce website. Regardless of whatever you’re selling, there are a number of ways to boost your revenue through upselling.
Today, we’re giving you five tricks and ways to upsell on your eCommerce website. Let’s get started.
What Does It Mean to Upsell?
Upselling has long been a marketing strategy that opts to sell a more superior and expensive version of a service or product that the customer has already sampled or wants to purchase. Usually, the more superior version or service will contain more features to increased the perceived value or come with something of “better” quality to increase the rate.
Upselling also has a counterpart called “cross-selling,” which is another strategy that sells products related to what is being bought or is already owned. For example, when you go to the supermarket and even at the cash register you have a chance to buy more items like chocolates and magazines. That’s cross-selling.
There are multiple methods to employ both upselling and cross-selling on your eCommerce site to make more money. Sometimes, you can combine the two—which you’ll see in some tips below.
Deciding What to Upsell
The primary challenge that businesses have is what to upsell. The preferable option is the next level up in terms of quality and price. For example, if you sell supplements, you might try upselling a 30 pill bottle for a 60 pill bottle that’s only $5 more. Consumers think about prices with the same rationale, as many pricing experiments have found.
While that methodology is indeed effective, the most productive way to upsell is to make a recommendation about what best fits the customer’s needs.
For example, a standard edition of software might only contain 3 features while a deluxe package provides full access that are recommended for enterprises (your hypothetical target audience) for only $10 more. For a professional designer, for example, access to all those features in one application saves time and money—and they know that. The chance of an upsell increases exponentially, simply because you said, “Yes, the standard version works, but this special version is more tailored to you!”
In order to figure out what your customers’ need and want, you can do some targeted research, including keyword research and customer surveys. Or, you can use their search and purchase history.
Upselling Strategies for Boosting Revenue
Amazon does a wonderful example of bundling items and suggesting you buy more than what you came for. Bundling, to be clear, refers to items that are added on to the item or service you are currently checking out. For example, the bundled items for a new coffee press might be ground coffee and a coffee mug. Cameras could be bundled with batteries and a strap or tripod.
The aim of bundling is to not only make purchasing items easier for the customer but to help them make an instant purchase decision. Most buyers employ the “just in case” mentality when ordering items, so even if they have an item that was bundled together with their camera or coffee press, they see the purchase as an intelligent move.
The more bundled options you offer, the more chances at making an upsell there are. Mix bundling with product recommendations for even more persuasive power.
2. Comparing Additional Features
Many businesses offer package deals that are priced based on the additional features. You can do the same in your eCommerce store. The popular layout is on sites with subscriptions, where you can see the features included in a free plan compared to a paid plan and a premium plan. If you have items, you can line up the products based on their price and capabilities so people can see just how awesome the next level up truly is. Side-by-side comparisons are very persuasive, especially when the item or service you are trying to upsell is infinitely better and worth the extra investment.
3. Personalised Product Suggestions
Don’t you feel like royalty whenever someone at the cafe or supermarket remembers your name? Or when you receive special birthday coupons in the mail? That same feeling can help you upsell. Acknowledging your consumers as more than just buyers spending money on your site will help them feel special and coveted—and this leads to increased loyalty in your store and services. Additionally, according to an Accenture study, 56% of consumers buy from retailers when their name is remembered. 58% of the same customers will buy again when offered recommendations on past purchases.
For you, that means you need to create profiles based on past sales and buying behaviours to encourage more purchases. This is also a way to capitalise on impulse buys, particularly when the recommendations are intelligent. Did your customer buy a set of shirts last time? Recommend matching socks this time. It’s little things like that that increase sales.
4. Related Products
Look at items that are frequently purchased in tandem. From there, you will gain valuable insight to what can be offered as a related product and make more cross-sells. Related products have been found to increase cross-sells by 10% or more, depending on your niche. Physical products are the best when it comes to cross-selling, though, especially when you can bundle those related products together.
In order to make related product purchases work, you need the suggest items that make sense. Again, tracking what customers usually buy and what those items are paired with will give you an idea. Google Analytics can you help with tracking these trends and organising the data.
Upselling doesn’t have to be an item but an upgrade, such as a way to make their purchase much more enjoyable or a safer investment. Recommending warranties is a profitable upsell strategy, especially if you are selling technology. In fact, offering product replacement and repair guarantees has been show to increase sales by over 300%. You also boost consumer confidence in your brand and increase the likelihood of higher satisfaction and returning buyers.
You can over a range of warranties, too. For example, you might sell a computer then offer a 1-year, 3-year, and 6-year warranty for ascending prices and additional services tacked on to each duration. Most people prefer to be safe than sorry, so you are guaranteed to make upsells with warranties.
Upselling is one of the best tactics for getting the most out of your online store and increase your sales. You can implement a number of strategies—whichever works best for you—and start making more of a profit with little extra effort on your end. Just keep the principle that the key to upselling well is to research the consumer market to understand the behaviours and purchase patters of your target audience.