Introduction to Up selling - A beginners guide

What is Upselling?

Upselling is when you persuade a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable.

It’s something all online businesses should consider. As with cross-selling, not attempting to upsell when the customer is already in a buying frame of mind is a wasted opportunity.

Upselling Best Practices

Upselling can help a business generate additional income when done properly. Best practices include:

• Avoid recommending a product or service that is significantly more expensive than the product being purchased.  
• Don’t be too pushy or aggressive. Accept “no thank you” as a response. 
• Focus on the customer’s needs and how the value-added offer will help meet those needs. 
• Upsell when possible and appropriate so no opportunity is missed.
• Offer side-by-side comparisons so the customer can see the value in the premium version. 
• Educate the customer as part of the upsell so the customer understands the risk of not taking advantage of the offer.
• Offer an in-the-moment-only discounted price to encourage the customer to make an immediate decision.   

Upselling in the Call Center

Lillian Vernon is a good example of the progression of cross-selling within the call center.

David Hochberg, vice president of public affairs at the Rye, NY, catalog company, explains, "We have traditionally in the past used upselling as a means to sell overstocks and discontinued merchandise. You call our 800 number and at the end of the transaction, the rep is trained to say, 'Would you like to hear what items we have on sale?' Most consumers find that very compelling because everyone wants a bargain."

Lillian Vernon uses upselling to speed sales of slow items in its current edition instead of waiting for the next mailing to add a discount. Mike Berg, vice president of customer communications, explains that as responses come in for each edition, Lillian Vernon tracks which items are selling slowly and cuts the prices, decreasing overstocks before they happen.