What is Upselling? How to Convince a Customer to Buy a More Expensive Product?
Why Is Upselling Important? Although it seems to have a slightly negative situation in convincing people of the more expensive, this technique makes a positive contribution to the shopping experience when applied correctly.
There is a sales technique called Upselling. Basically, this sales technique means persuading the customer to buy a more expensive, more premium product and service from the product they choose.
Especially in the field of e-commerce, by using upselling and cross-selling techniques, it is aimed to increase the order and gain.
Let's say the customer decides to buy a sneaker for $ 120 and adds the product to the basket. If you suggest a shoe worth $ 150 this year's fashion on the basket screen and you encourage the customer to buy the $ 150 instead of the $ 120. You have successfully applied the "upselling" technique.
Although it seems to have a slightly negative situation in convincing people of the more expensive, this technique makes a positive contribution to the shopping experience when applied correctly.
Why Is Upselling Important?
This technique allows for deeper relationships with customers: upselling is not a deceptive, stingy technique. You provide more value to the customer by making various recommendations, premium model recommendations. In other words, the customer pays more for the product you recommend than the product of his choice, but as a result he / she will buy a better product. The customer gets a better quality, better product and you will make more profit from this business.
It is easier to persuade existing customers than to convince new customers: Selling to someone who has already purchased from you, who knows your website or store; It's easier and less costly than selling to a new customer who has never purchased from you before. In other words, the probability of an existing customer to shop from you again is 60-70%, while your rate of selling to a person who sees or hears your brand for the first time is between 5-20%.
Customer lifetime value increases: This value describes the amount of purchases a customer makes with your company over their lifetime. The higher the lifetime value of a customer, the more this person will continue to shop from you without any extra marketing-advertising costs. With the Upselling technique, for example, you can increase the shopping lower limit of a customer who constantly purchases 100 dolar to 150 dolar, and this person's shopping will now give you more profit.
Customers come back to buy more: Upselling adds value to the customer's life and encourages this person to buy more. If you prepare an easy and simple process for the customer, this person will continue to shop from you. At this point, it is of great importance that the customer service is very good and the problems and questions of the customers are answered as soon as possible.
What is the Difference Between Upselling and Cross Selling?
Especially in the field of e-commerce, these two sales techniques are used to increase earnings and to buy products with higher prices.
While Upselling has the aim of selling a higher model of a shoe worth $ 200 to the customer for $ 250, cross-selling aims to sell similar products to the customer related to the product they purchased.
Upselling: The client decided to buy a $ 300 coat from last year's collection and added it to his basket. In the meantime, you can show the customer a photo of a $ 400 coat from this year's collection and make the customer change their decision.
Cross-selling: The customer added a $ 300 coat to his cart. In the meantime, you can increase the customer's shopping amount by recommending products such as gloves, boots, scarves, and berets to this person. In other words, it is a "You also like these" suggestion, cross selling.
How Is Upselling Applied?
There are some methods for you to better apply Upselling techniques in e-commerce. Let's look at these methods in more detail.
1. Choose the Right Product
There are several methods for top selling:
Higher version: You can suggest a bigger, stronger and faster product to the customer. For example, you can think of it as offering an iPhone 9 Plus to someone who buys an iPhone 9.
Extra guarantee: For example, someone entered your website and threw the product into the basket to buy a laptop. Providing this person with an extra warranty package that includes extra features in addition to the normal warranty falls into the upper sales area. It is an example of up-selling to ensure that the customer pays $ 200 more by offering an "extra guarantee against theft, breakage, deterioration for $ 200 per year".
Early renewal: Let's say the customer bought a pair of glasses. When a top model of these glasses comes out, it is a top selling technique to give this person the opportunity to renew early. Let's say the glasses are $ 250. You can think of it as offering a 30% discount when a top pair is available by paying this person $ 270.
Package discount: You can increase your sales amount by selling related products into a package. For example, the customer just wants to buy a refrigerator. The refrigerator is 5000 dollars. The washing machine is 3000 dollars and the dishwasher is 2000 dollars. A customer who just wants to buy a refrigerator pays $ 5000. However, if you include the washing machine and the dishwasher, it makes 5000 + 3000 + 2000 = 10,000 dollars. If you persuade the customer to purchase an amount (9000) less than the amount they had to pay (10,000) when they bought these three items individually, you would have made an additional $ 4,000 in sales.
2. Always Use Upselling Technique
The more top-priced product samples you show the customer, the more your chances are.
For this, be sure to include an image of a more expensive similar product on any product page. For example, while the customer is viewing a $ 3,000 TV by Vestel, there is a $ 4,000 Samsung TV image on the edge of the page.
When the customer adds the product to the basket, show the image of similar products as well. Let them know of the product they are trying to buy with better features.
3. Create a Sense of Urgency
If a product is only on sale for 24 hours, people want to buy it immediately and not miss the discount. If only 5 of a product are left in stock, people try to buy this product "right now", which they say "We will buy it next week".
You can use a similar logic for top selling.
The customer threw the product into the basket to buy winter boots for $ 300. In the meantime, you can recommend a $ 420 water-proof boot that does not slip in snow and rain. If you state that this $ 420 boat is normally $ 699, but the price is only $ 420 per day, this person can drop the $ 300 boat and buy it for $ 420. If it is $ 120, you will have extra earnings from the top selling technique.
4. Make Personal Suggestions
According to the latest research of Accenture, personalized suggestions make the top selling 75% more successful.
If the customer;
If you know the history of shopping,
If you know the interests and requests of the customer,
If you can call the customer by name, you can more easily sell a product worth X + $ 20 instead of a product worth X dollars that he is trying to buy.
If you find out that this person is someone who loves the Barcelona football team, you can recommend the Barcelona licensed product while trying to buy a plain t-shirt.
5. Use a Correct Style
Style is the basis of a successful marketing campaign. It is necessary to use the right words to convince the customer.
The best top-selling examples are examples that explain to the customer how a higher version will make his life easier and more enjoyable, and what he / she will miss if he / she does not buy this product.
For example, there is an example of Spotify free and premium package above. If this person continues to stay in the free package, they will continue to listen to advertisements, will not be able to pass the song whenever they want, and will not be able to enjoy the opportunity to listen in high quality.
6. Offer Free Shipping
Whether it's a $ 100 or $ 1000 purchase; If the shipping is paid, the customer will be less willing to complete the purchase. In other words, the free shipping opportunity gives people the desire to complete the shopping.
When it comes to top sales, an approach can be taken: You can say that you offer free shipping above a certain amount. So if it's free shipping over $ 300 and the customer has put a $ 200 item in their cart, they'll be more willing to buy another $ 100 item to take advantage of the free discount.
Social proof expresses the feelings and thoughts of other people about a product or service. If there are positive comments about the X product on Amazon or Hepsiburada or on the internet, we would love to buy this product. However, if the comments are generally negative, we will try to forget this product.
All of these create top selling opportunities.
So if your website has negative reviews about product X, these reviews can help you sell the more expensive product Y.
In addition, "Those who looked at this product also examined the following products." An expression of style is an example of social proof.
8. Offer Three Options
There is such a thing as the "Rule of Three" in marketing.
We cover this rule on the basis of pricing here. For example, if there are 3 different price options for a product, people usually buy the median product.
So the basic package of a product is $ 10 per month, the pro package is $ 20, and the premium package is $ 50. While the first and third options give a very cheap and poor quality image, the third option leaves a very expensive impression. In such a situation, people consider the $ 20 package to be the most reasonable choice and finalize the purchase decision.
9. Consider After Sales
Many top selling suggestions are presented on either the product page or the price page. However, after the customer purchases the product, you can make an up-selling suggestion.
For example, after the customer orders the product, you can offer a relevant product for 24 hours at a personalized price.
So let's say the customer bought a nice fountain pen worth $ 250. “Your pen is being prepared for shipping. $ 100 handmade X brand notebook for writing with this beautiful pen, $ 79 for 24 hours and just for you. " You can make an offer like.
10. Offer More Affordable Product
You can also use sub-sell technique, such as up-sell.
If the customer;
Only looking for products in a certain price range,
If he throws a $ 100 worth of product into the basket but is looking for a cheaper product on the website,
If you have added the product to the basket a long time ago and completed the shopping, you can suggest a more affordable product to this person.
Sub-selling, that is, a budget-friendly proposition; It enables you to gain trust in the eyes of the customer by considering the customer's budget and making the most appropriate suggestions.