When we talk about upselling, it’s always “get one free burger” or “update your shopping cart by adding another shade of lipstick”. In simple words: upselling is adding to the purchase and “upgrading” the final buy, often with more high-end products. That’s exactly where we are going in this article, to learn about upselling examples and understand what makes them so special. Upselling is not a new concept, but it changes its face and comes in new ways that are always relevant, trendy, and even fun for customers to go through. Maybe that’s why some call it “suggestive selling”!
We will talk about the meaning of upselling, go over 5 upselling strategy examples, and discuss the difference between upselling and cross selling.
What is Upselling?
Upselling is above all a sales technique. When a seller encourages a customer to purchase a more expensive item, an upgrade, or an add-on to make a more profitable sale, they kind of “up the sale” or “upsell” the current purchase. This strategy is mostly used at the point of checkout, where customers are presented with higher-end versions of the products they are buying.
Effective upselling strategies can significantly increase a business’s revenue by maximizing the value of each single transaction. For instance, a customer purchasing a basic smartphone might be offered a model with more features at a slightly higher price (or a product bundle including some accessories). Key upselling techniques include showcasing the benefits of premium options and highlighting special deals that provide better value. By implementing these upselling strategies and tips, any business can experience growth and make its existing customers more loyal.
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The difference between upselling and cross selling
These two concepts can be challenging for some sellers to differentiate. While unclear at first glance, it’s pretty simple when you understand it. A comparison between upselling and Cross selling examples shows that upselling focuses on “increasing business revenue by offering upgraded, higher-end, and more expensive products”. In contrast, cross selling doesn’t always involve pricier items. Sometimes, the added product in a cross sell might be cheaper, but it still raises the overall price or turns a single item into a bundle.
Simply put, upselling means offering a better or enhanced version of the original product, while cross selling involves adding something to the purchase to make it complete. This could be any additional product that complements the original purchase. Understanding these concepts and implementing upselling strategies can help maximize your sales and improve customer satisfaction.
Now let’s understand this better with some upselling strategy examples.
Further Reading: Bundling at the Service of Upselling and Cross Selling
5 upselling strategy examples and their case studies
No matter the product and the field of business, upselling can be a great way to shake your business and grow in benefits. Here are five examples that give you enough insight to kick-start your upsell ideas and even get inspired:
Apple’s Extended Warranty
Launched back in 1999, “AppleCare” was an extended warranty offered by the company, that provided customers with an additional option to upgrade their purchase from the brand. This strategy capitalizes on the customer’s desire for security and longevity of their high-value purchase. When purchasing a new iPhone, Apple prompts the customer to add AppleCare, enhancing their purchase with extended service and support.
Amazon’s “Frequently Bought Together”
This example of upselling is one that you might have seen daily. The “Frequently Bought Together” feature on product pages suggests additional items that complement the product a customer is viewing.
How to Upsell? This strategy leverages customer data to recommend products that are often purchased together, encouraging customers to buy more items. Like If a customer views a camera, Amazon might suggest purchasing a lens and a tripod as well, increasing the overall sale and upgrading the photography experience.
McDonald’s Meal Upgrades
One of the older upselling strategy examples, McDonald’s meal upgrades was Introduced in the 1970s. The employees ask customers if they want to “make it a meal” or “supersize” their order, adding fries and a drink to a sandwich purchase. This strategy involves direct employee-customer interaction, suggesting larger sizes or additional items. This can be very similar to cross selling, and some people even consider it to be. But since the company is offering the customer “a more valuable purchase” we consider it upsell: When a customer orders a burger, the cashier suggests upgrading to a combo meal, resulting in a “higher total sale”.
Airline Class Upgrades
Many airlines offer customers the option to upgrade their seats to business or first class during booking or check-in. This method has been popular since the 1980s, and the strategy used targeted offers and price incentives to encourage travelers to choose more expensive seating options.
When is this done? When a passenger booking an economy ticket might receive an offer to upgrade to business class for a reduced rate, improving their travel experience and increasing the airline’s revenue.
Starbucks Drink Customizations
Everyone goes to Starbucks, and one of the greatest things about this coffee shop chain is that you can customize your drink. In the 1990s, Starbucks baristas started suggesting customizations and add-ons like extra espresso shots, flavored syrups, or non-dairy milk options. By personalizing the drink experience, Starbucks encourages customers to enhance their beverages with additional items, increasing the average transaction value.
Imagine you order a latte, the barista might suggest adding a shot of vanilla syrup or an extra shot of espresso, leading to a higher overall sale. If you’re a coffee lover, you’ll probably accept the offer.
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Upselling tips to remember in your sales journey
Upselling can be done anywhere and in any type of business. To increase the chance of succeeding and make the best customer experience through upselling, here are some tips.
- Understand Customer Needs: Tailor your upsell offers to the specific needs and preferences of the customer for a more personalized and relevant recommendation.
- Offer Value: Highlight the additional benefits or features of the upsell item, emphasizing how it will solve more problems or enhance the customer’s experience.
- Stay Knowledgeable: Be well-informed about your products. Confidence and knowledge can significantly influence the customer’s decision to consider an upsell.
- Create Bundles: Offer packages or bundles that provide more value at a slightly higher price, making the upsell more appealing and cost-effective for the customer. Remember that you can always use a bundled app to facilitate your upsell attempts.
- Use Positive Language: Frame your upsell suggestions positively. Instead of saying “Do you want this?”, say “Many customers find this upgrade beneficial because…”.
- Leverage Timing: Introduce upsell options at the right moment in the sales process, such as when the customer is already committed to a purchase.
- Build Trust: Establish trust with your customers by being honest and transparent. Ensure your upsell suggestions are genuinely in their best interest.
- Offer Limited-Time Deals: Create urgency by offering limited-time promotions or discounts on the upsell item, encouraging quicker decision-making.
- Be Subtle: Avoid aggressive selling tactics. Gentle, well-timed suggestions are more effective and less likely to alienate the customer.
Final thoughts
With reading all these upselling and cross selling strategy examples, now you probably have a good idea of the concept. In conclusion, upselling, when done right, can significantly boost sales and enhance customer satisfaction. By understanding customer needs, offering genuine value, and employing strategic techniques, businesses can create win-win scenarios. The case studies explored highlight the importance of personalization, timing, and building trust. Integrating these insights and tips into your sales strategy can lead to improved customer loyalty and increased revenue. Happy upselling!
