Upselling (sometimes 'up-selling') is a sales technique whereby a saleperson induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products, but upselling can also be simply exposing the customer to other options he or she may not have considered previously. Upselling implies selling something that is more profitable or otherwise preferable for the seller instead of the original sale. A different technique is cross-selling in which a seller tries to sell something else.
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Examples
Some examples of upsales include:
- suggesting a premium brand of alcohol when a brand is not specified by a customer (such as offering Captain Morgan if a customer simply requests a "rum and Coke").
- selling an extended service contract for an appliance
- suggesting a customer purchase more RAM or a larger hard drive when servicing his or her computer
- selling luxury finishing on a vehicle
- suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one they are considering.
- suggesting a customer purchase a more extensive car wash package.
Techniques
Many companies teach their employees to upsell products and services.
A common technique for successful upsellers is becoming aware of a customer's background and budget, allowing them to better understand what that particular purchaser might need.
Another way of upselling is by creating fear over the durability of the purchase. This is particularly effective on expensive items such as electronics, where an extended warranty can offer peace of mind. This also works with things like expensive leather shoes, where the salesperson suggests that you also buy the waterproofing spray, "to make the shoes last longer".
See also
- AIDA
- Bait and switch
- Choice architecture
- Contract of sale
- Cross-selling
- List of marketing topics
- Marketing
- Permission marketing
- Promotion
- Sales
- Selling technique
- Sullivan nod
- Value added selling
References
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