Upselling

Upselling

Upselling Jonathan Poland

Upselling is a sales technique that involves encouraging customers to purchase higher-priced, add-ons, or upgraded versions of products or services that they are already interested in. It is a common tactic used by salespeople, particularly in industries such as retail, hospitality, and travel.

Upselling can be effective for several reasons. First, it allows businesses to increase their revenue by selling more expensive or upgraded products or services. Second, it can improve customer satisfaction by offering customers additional value or features that they might not have considered otherwise. Third, it can help businesses differentiate their products or services from those of their competitors.

However, upselling can also have drawbacks. If done improperly, it can be perceived as pushy or manipulative, which can damage customer relationships and hurt the business’s reputation. Additionally, upselling can be risky if it involves selling products or services that customers do not need or want. In these cases, customers may be dissatisfied with their purchase and may be less likely to return to the business in the future.

Overall, upselling is a common sales technique that can be effective for increasing revenue and improving customer satisfaction, but it should be used carefully to avoid damaging customer relationships.

Premium Versions
Offering premium versions of products such as flower arrangements that are sold at several levels of quality.

Options
Optional features such as a catalog of options for a car.

Customization
Allowing a customer to customize the design or look of a product such as color.

Services
Services such as support or professional services. For example, software may be sold with consulting services. This allows the vendor to establish a close relationship with the customer that may lead to extensive future business.

Risk
Risk related products such as an extended warranted or insurance.

Financing
Offers to finance a purchase with a credit product.

Complementary Items
Cross-selling items that complement the product. For example, offering wifi access plans with mobile devices.

Popular Items
Offering popular items that aren’t necessarily complementary to the product. For example, an ecommerce site may suggest a best selling book as an add-on for a purchase of strawberry jam.

Priority Items
In many cases, upselling is focused on selling items that are a strategic priority for the seller. For example, a store credit card may be difficult to upsell but may be the priority as it allows a firm to establish a long term relationship with the customer.

Learn More…

Market Forces Jonathan Poland

Market Forces

The interaction that shapes a market economy. Market forces are the factors…

Local Marketing Jonathan Poland

Local Marketing

Local marketing refers to any marketing strategy that targets customers in a…

Economic Efficiency Jonathan Poland

Economic Efficiency

Economic efficiency refers to the ability of an economy to produce the…

Brand Image Jonathan Poland

Brand Image

Brand image is the overall perception that consumers and the public have…

Demand Generation Jonathan Poland

Demand Generation

Demand generation is any marketing or sales activity designed to create recognition,…

Business Experience Jonathan Poland

Business Experience

Business experience refers to any work experience, including paid employment, freelance work,…

What is Baseline? Jonathan Poland

What is Baseline?

A baseline is a reference point or starting point that represents the…

Product Benefits Jonathan Poland

Product Benefits

A product benefit is the value that a customer derives from a…

Managed Services Jonathan Poland

Managed Services

Managed services refer to a range of IT and business services that…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

What is Dumping? Jonathan Poland

What is Dumping?

Dumping refers to the act of selling a product or service in…

Communication Strengths Jonathan Poland

Communication Strengths

Communication strengths are qualities or abilities that enable an individual to communicate…

Performance Risk Jonathan Poland

Performance Risk

Performance risk refers to the potential negative consequences that a business may…

Program Risk Jonathan Poland

Program Risk

Program risk refers to the likelihood of a program failing to achieve…

Product Transparency Jonathan Poland

Product Transparency

Product transparency refers to the practice of providing extensive information about products…

Business Values Jonathan Poland

Business Values

Business values are statements that reflect the ethical principles of a company.…

Pull Strategy Jonathan Poland

Pull Strategy

A pull strategy is a marketing approach in which a company creates…

Customer Service Principles Jonathan Poland

Customer Service Principles

Customer service principles are guidelines that an organization follows to shape its…

Embedded System Jonathan Poland

Embedded System

An embedded system is a specialized computer designed to perform a specific…