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How to upsell: 6 effective strategies

Publish Date

April 16, 2024

Upselling is a good sales strategy where you encourage customers to purchase a premium or upgraded version of your product or service they already have or are buying.

Why does this strategy work? Well, selling to an existing customer is easy because they already trust your brand. In fact, the probability of selling to an existing customer is 60% -70%, while the probability of selling to a new customer is only 5% - 20%.

And when you upsell, you are actually helping your customers find the right product that solves their problems better. So, if you do it the right way, it’ll make them happy and strengthen your relationship with them.

In this post, we’ll understand how to upsell through six effective techniques. 

How to upsell: 6 genius strategies

Upselling is a smart way to grow your business because it leverages the relationships you already have. Here are six upselling techniques that will help you make more profits:

1. Pitch the right upsell

Just throwing random upsell offers doesn’t work. You’ve to ensure those offers are relevant and valuable to the customer at that moment.

This means you’ve to understand your customers. You’ve to know their pain points, goals, and budgets. Here are some common upsell techniques you can consider:

-Version upgrades: Offer better versions of a product with greater features.

-Exclusive access: Provide members-only content or early access to new products.

-Customization: Add personalized solutions according to the customer’s needs.

-Extended service period: Offer longer warranties or support plans for peace of mind.

-Bundles and add-ons: Suggest related product packages.

Choose the upsells that maximize both customer satisfaction and your profits. Upsells should meet their genuine needs or provide a tangible benefit.

2. Show product comparisons clearly

Buying a new product is risky. People don’t want to lose their money on the wrong product. That’s why they carefully research product pages before placing an order.

A study shows that 81% of shoppers research online before making big purchases.

You can make this process easy for them by showing different product versions in one place.

For instance, a clear product comparison helps customers figure out the differences between your offerings and lets them make quick decisions.

This technique works incredibly well for SaaS products. Take Slack, for example. See how they’ve showcased their four product versions with different pricing tiers.

The table highlights the extra features and benefits so customers can see why spending a little more might be the smarter choice.

This image explains how to upsell. It shows Slack’s pricing page that showcases their four product versions with different pricing tiers.

3. Limit the price

If a customer is buying an $800 laptop, suggesting a $50 mouse is a logical upgrade. However, if your customer is buying a $50 mouse, suggesting an $800 laptop wouldn’t make sense.

Pricing your upsell too high can create a psychological barrier. Customers may start questioning the value of the purchase and back out from the deal altogether.

So, you’ve to keep the upsell cost within a reasonable range. You can aim for your upsell to be priced at less than 40% of the original product’s cost. 

This will feel like a small, manageable extra cost, so customers will be more likely to consider it seriously. 

When learning how to upsell products effectively, you must take care of this price sensitivity. You can also test different pricing options to see what gives you the best results.

4. Use an AI sales assistant

The rise of AI has given us this incredible upselling technique. AI sales agents can not only do more upselling but also automate your entire sales process.  

AI agents are conversational interfaces that interact with your customers and help you achieve your sales goals. Here’s how they can help you upsell:

  • 24/7 availability: AI sales agents never sleep. They’re always ready to engage customers, so you never miss an upsell opportunity.
  • Data-driven insights: AI can analyze customer behavior, purchase history, and preferences. This allows it to make personalized upsell recommendations that get more conversions.
  • Scalability: AI sales assistants can handle multiple conversations at once. Every customer gets support during peak periods, so you’ll have more upsells.
  • Sales expertise: AI agents deliver the perfect pitch. They highlight primary product benefits, address common questions, and overcome objections to convince customers to make purchases.

Chatsimple’s AI sales agent is a great tool to boost upsells. It can engage website visitors in human-like conversations and provide personalized recommendations based on customer needs.

This image shows an effective upselling technique in action: using an AI sales agent.

5. Send personalized follow-up emails

People buy when they like your product and trust your brand. That means existing customers are more likely to accept your upsell offer than new customers.

So, after the customer makes their initial purchase, you can send a follow-up email. You can suggest related products that may benefit them or relevant upgrades that may have slipped their mind during the checkout. 

Use their purchase data to personalize your email – for example, if they bought a digital camera, you could suggest a compatible lens or a larger memory card. This will increase website sales.

It goes without saying that you should focus on providing genuine value to the customer rather than coming across as overly pushy in your email.

6. Give an irresistible offer

A good offer lowers the risk and gives you more upsells. It acts as an incentive that nudges customers to upgrade their purchase. 

You can provide a small discount to make the upgraded product feel like a better deal. Or you can give a limited-time offer that creates FOMO and motivates customers to act quickly.

Consider the example of Mailchimp. See how they have used this upsell technique by providing their email marketing solution at 50% off:

This image shows another upselling technique used on Mailchimp’s pricing page: giving a discount to lower the risk.

How to upsell: Use Chatsimple’s AI sales agent 

If you want to increase and automate sales, you can try Chatsimple’s AI agent.

This AI sales assistant lives on your website and interacts with your visitors. It answers questions, understands their needs, and recommends products.

The AI sales agent is really smart. It clearly tells your website visitors what your product does, who it is for, and how it can transform their lives to make them convert.

And you can easily train it within 5 minutes and integrate it on your website or messaging platforms like WhatsApp, Instagram, Facebook Messenger, etc.

Visit this page to learn more about Chatsimple’s AI sales agent.

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