As I have already conferred, in the post titled “Up Selling and Cross Selling Techniques“, Up-selling is the practice of offering customers an upgraded or premium version of a product.
Providentially, most businesses have the prospective to increase sales simply by selling added products or services to their existing customers. When you try to sell additional products and services to members of your current existing, you are applying a booming technique known as the up-selling method.
It is successful method of selling because the person who just bought from you is in a state of maximum interest and they are willing to listen concerning to anything additional you have to offer them that will make their life easier.
For example, if a customer is already bought an anti virus software with one year license through the online purchasing of your shopping cart website and also satisfied with the product efficiency. And when decided for renewal of that product you recommend for a premium version of that software included with a back-up CD and offer a three-year license instead of a one year license, for a slightly higher price, then, we are talking about up-selling.
Besides the standard product offer, you can also achieve higher revenue from other up-selling opportunities as such:
- Upgrades (when a new functionality is added)
- Maintenance/ support contracts and consultancy
- Add-ons (extension products written either in house or by third parties)
- Lateral developments (modifying a product for new markets) and custommade developments (specialist developments)
- Licensing deals