Are you trying to improve your business upsell strategy implementation but don’t know where to start? You’ll love the tips and suggestions in this article since they can help you get more sales by increasing the conversion rate and adding value to your products.
Statistics show that upselling increases revenue by 10-30%, so it’s an important strategy for any e-commerce website that’s trying to make more money. Also, there’s no need to generate additional traffic or spend marketing dollars with upselling, since it’s making use of buyers you already have on your list.
What is Upselling?
Upselling is a strategy that’s used to generate sales from existing customers. Hence, if you generate a customer, then you can send them more offers that usually have a higher price point. In fact, the upsell can be the main strategy for a business to generate revenue.
By using the initial sale to get the customer’s email and interest, upsells can push big ticket items that generate many multiples of what the regular sales do. Upselling works well because it qualifies leads, so you know where to focus your attention to generate the biggest sales.
Targeting is Important
During the initial interactions and sale, you should have acquired a lot of information about the customer. This can be done with customer relationship management software, which automates most of the process.
Using this information, you can target better upselling offers. This ensures that customers receive offers they might be genuinely interested in buying. Also, it improves your conversion rate, allowing you to make the most sales per offer.
However, it takes some practice, and you need to build a database of information. You can also use buying preferences to figure out what customers might want to buy next.
Time your Offer Perfectly
The timing of your upsell should be based on how long it takes to use the products or services of the initial purchase. If you promote the upsell earlier, then the customer may ignore it simply because they are not ready. However, if you’re too late with the offer, then they may purchase something similar from a competitor.
You can improve the timing of the offer via trial and error. By recording the sales data, you can find the best periods to wait until you send the upsell offer. In fact, marketing software may have a function that offers suggestions on when to send an offer based on the collected data.
Are you offering subscription packages for your services or products? This introduces the concept of upselling to customers right away. For example, they may look at the features and tools of your most expensive packages, and decide they don’t need that functionality just yet.
Consequently, they sign up for a low price option and begin enjoying your services. However, you can provide a steady stream of nudges towards the more expensive tiers by showcasing its benefits.
This ensures that the happy customers with the budget tier will be interested to upgrade and you’ll end up increasing the amount of money generated from each subscriber.
Improve Your Customer Service
It’s no secret that customers are willing to pay more when a brand offers amazing customer service. That’s because they can feel confident about getting great service in the event that the product turns out to be faulty.
Also, great customer service makes buyers appreciate the brand they are buying from. This is especially true if they have had poor quality experiences with other companies. You can be the brand that steps in and delivers on what customers expect.
Hence, after offering amazing customer service, you can expect your conversion rate for upsell offers to improve. Therefore, the investment in improving your customer service will pay for itself in the form of more sales.
Utilizing the power of email marketing allows you to skyrocket the conversion rate for your upsell offers. That’s because once you have acquired the buyer’s email, you can send them repeated messages. Some of these should be value added content, while others can be the marketing message that attempts to upsell the customer.
Buyer’s of your previous products are unlikely to unsubscribe since they may want to receive updates. This means that you can send repeated messages and convert them eventually. This can take a few weeks, months, or years.
Make It Time Limited
One of the oldest tricks in the book for making an upselling offer is adding a time limit. This adds the feeling of scarcity and that action must be taken now in order to not miss out. By forcing the hand of the buyer, they are more likely to buy instead of backing out and potentially visiting your competitor’s website.
However, the time limited offer must not be a trick, since your customers will pick up on the strategy. Once the time runs out, the offer should also disappear. You can always introduce the offer at a later date, which may result in another boost of sales.
The business upsell strategies in this article are just a few examples of how to improve your conversion rate and revenue. Through testing and paying attention to your data, you can deploy even more strategies to increase your chances of success.
These strategies work best when you have excellent offers that complement the original purchase. Don’t have any other products or services that you can upsell? Then perhaps it’s time to develop them to ensure you can grow your business by making the most of your existing customer base.
After all, it costs more to acquire new customers compared to selling to existing ones. Hence, businesses with a tight marketing budget should focus on upselling versus constantly pouring more money into getting new customers.