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.

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

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

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 related products such as an extended warranted or insurance.

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.

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