Upselling Sales Technique: How to Upsell in 4 Steps

Upselling is a sales strategy businesses use to increase revenue by selling customers a more expensive, higher-end version of a product. This sales tactic ups the value of the original purchase to make more money for the company. Storefronts and e-commerce sites use upselling to offer a pricier version of a product model.

For example, a tech company may sell products that are this year’s model (more expensive ones) and last year’s model (less expensive ones). The salesperson might ask about a customer’s needs, then make product recommendations that lead them to want the current, more expensive model. Upselling can also be a part of e-commerce platforms; websites will suggest more expensive versions of products in a customer’s cart during the customer journey to maximize sales before the customer gets to the final checkout process.

Upselling and cross-selling are sales techniques businesses use to optimize sales and increase revenue, but the methods differ. Upselling sales techniques focus on getting customers to buy a more expensive version of a product. For example, if a customer adds a dress shirt to their online cart, a company might employ a pop-up ad for a more expensive brand or shirt style on the product page.

Cross-selling strategies aim to sell buyers additional products based on what they are interested in buying. If a customer adds a shirt to their online shopping cart, the company might try to cross-sell undershirts, ties, cufflinks, or other complementary items for the shirt. After sending an order confirmation email, the company might follow up a week later and offer the existing customer relevant products based on their first purchase.

There are several ways salespeople can use upselling strategies to increase the average order value. Follow these steps:

1. 1. Ask customers what they want. Asking new customers what they are looking for gives salespeople the chance to describe why a certain good—the more expensive product—meets their needs. Asking about the shopper’s needs can also enhance the customer experience and improve customer loyalty.
2. 2. Use market add-ons. Companies can advertise warranties, upgrades, and other necessary product pieces to increase a customer’s purchase and improve the bottom line.
3. 3. Follow-up after the purchase. After sending a customer an order confirmation email, follow up a week later and offer incentives for relevant products based on their first purchase. This is an opportunity to increase customer retention and showcase more products.
4. 4. Incentivize upsells with discounts. Some customers may want to stay in a certain price zone. Companies can incentivize upsells by showing more expensive products and slashing the price to make them more appealing.

Small businesses and large, e-commerce businesses use upselling tactics to boost sales. Consider the following upselling techniques:

1. 1. Premium offers: A customer is shopping for a small TV and a sales rep points them toward a larger TV, a premium version with better sound and a clearer picture.
2. 2. Comparison: A client is choosing between two cars and a sales rep offers a side-by-side comparison of the cars, highlighting the more expensive one's better functionality.
3. 3. Customization: A new homeowner goes to a furniture store to buy a table, and the in-store designer offers to hand-make a custom table—a superior product at a higher price.

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