Upselling, the practice of recommending more products or services to customers, may help you increase your average order value (AOV) with little marketing investment. These clients have previously shown an interest in your company's name and goods. At the correct time and location, you need to provide your customers with essential improvements. With the right approach, upselling has the potential to strengthen customer connections while also boosting income. It's possible to come off as aggressive if you're not careful.
You can upsell them on the product page or checkout.
What is upselling?
Upselling is a sales approach that involves persuading clients to buy a more costly, upgraded, or premium version of an item they already own.
Upselling involves selling to an existing client rather than a new one. The chance of selling to an established client is 60%–70% compared to 5%–20% for a new customer. Plus, upselling becomes easy. For first-time customers, the likelihood of returning increases to 27%, and to 54% for repeat buyers.
Upselling may boost average order value (AOV). This is undoubtedly the largest advantage of upsell. Upselling at key moments in the customer journey may increase purchase quantities.
And upselling increases conversion rates. Because these post-purchase offers are tailored to your consumer at a convenient time in their journey, buyer intent is strong.
The difference between upselling and cross-selling
They're often mistaken, but there's a big difference. A cross-sell occurs when a product is recommended alongside the original offering. As opposed to a cross-sell (“Would you want fries with that?”), an upsell is an upgrade.
While increasing revenue and average order size may be your main goal, it's crucial to constantly consider the customer experience. Advising clients to purchase odd things might anger and confuse them. With a little planning and thought, you can create a lucrative and pleasurable upsell experience for your customers.