The primary and most frequently used Up-Selling Technique is bundling. The concept of bundling is that you group together a number of products, including the one that your customer initially chose, and sell them for less than the total cost of buying them individually. Once your customer has chosen a product, you can spot out the bundled offer to them and also showing them that they get a great deal and enhanced value if they buy the whole group, and not exclusively the first product.
Example of Bundling
Bundling is used by Amazon and generally engages offering two associated books collectively for a slight discount. This is a common strategy used by retail stores whereby purchasing 6 or more products or a box results in a 20% discount.
This single merchandising technique brings tens of thousands of dollars in increased sales each year to businesses.
Similar Alternative Product
The next technique of Upselling is waiting until your customer has selected a product and then suggesting an improved and further expensive alternative. It must be a similar product, but possibly with improved functionality or capability. Preferably you will recommend the more expensive product at a special rate, so the customer believes they are getting a excellent deal, but you will still be receiving additional revenue than if they had bought the original product.
Accessories and Add-ons with Product
The ultimate Upselling technique is to recommend accessories and add-ons to the original product. You preserve to sell these by saying that while the product is excellent on its own, it is completely incredible when used with the supplementary extras. You can almost certainly get away with adding accessories up to about fifty percent of the value of the original product before the customer begins to believe they are being ripped off.
Suggest your customer the choice of upgrading to a premium package. Give him/her an idea about the extra benefits of that premium package, along with, how each benefit alone, is value so many dollars to him.
Let your customers recognize this add-on product or service is completely for persons who already earn a high income. Or for those who are fast approaching there. Let them believe that this unique product or service is for top level customers.
Similar to an upgrade offer, but with a single item bundled into various valued-added packages. A cake box cost less than buying each cakes individually.
The post-sale discount
This type of offer is similar to the add-on but with one extra twist. The add-on item is provided low-cost in approval for buying the main product. And normally, this item carries a lower retail price than the one just purchased.
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
Cross-selling and up-selling techniques are the familiar selling tactics for the e-commerce business owners. Both are reputable techniques of increasing your sales and customer loyalty. Both techniques are able to boost up sales volume and offer a valuable service to the customers.
An upsell is convincing the buyer that he or she should purchase a more expensive and high quality or more adaptable product than the one under consideration. Simply saying, Upselling is the practice of offering customers a product in addition to the product they are currently purchasing.
A cross-sell is an attempt to encourage the committed buyer to add supporting items to the purchase, such as accessories or related items. Simply Cross-selling refers to selling items that are related or can be integrated with the item being sold.
Examples for Upselling and Cross Selling
If you visit a restaurant and order for a tandoori chicken, chances are, the person taking your order will ask you two questions:
“Do you want coke with that?” This is an example of a cross-sell. Everyone knows that coke go well with a fried chicken.
“Do you want to have a biggie-size of that Chicken?” This is an example of an upsell. The order taker is not asking you to buy additional items, but is encouraging you to buy a bigger and more expensive version of something you are already ordering.
Let’s assume you are selling CMS software used for aiding website content management system and during the selling process you offer another product for customizing that CMS search engine friendly.
The two products work perfectly together and supportive for each other. Your customers like the idea; they buy both products. This means you sell the second product using a cross-selling technique.
On other hand if you are selling the latest version of the above CMS but with additional pug-ins and upgrades, it means you are using the up-selling technique.