How to Boost Your Revenue With Upselling

What if you could boost your revenue without adding new products or services? In our latest episode of eCommerce Made Easy, we share the secrets of upselling and how it can transform your sales strategy. We break down the difference between upselling, cross-selling, and bundling, with a particular focus on enhancing the value of a single purchase. Using real-world examples like higher model cell phones and advanced service packages, we explain how catering to customer needs can foster trust and lead to increased sales. Plus, we delve into the psychology of perceived value and how presenting premium options can result in satisfied customers and business growth.

Upselling isn't just for products; it's a game-changer for service-based businesses too. This episode uncovers the fine art of upselling in services, stressing the balance between improving customer experiences and increasing sales without coming off as pushy. Learn how to leverage customer data for personalized recommendations, avoid common pitfalls, and perfect your timing. We also identify frequent mistakes such as overly aggressive selling tactics and emphasize the importance of using analytics and customer feedback to refine your approach. By the end of the episode, you'll have a toolkit of upselling strategies and insights to continually improve your business practices. Tune in to elevate your upselling game and watch your revenue soar!

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Chapters

• 0:45 Unlocking Upselling Strategies for eCommerce
• 13:02 Effective Upselling Strategies for Business

Transcript

Carrie Saunders: 0:45

Ever wonder how to increase your revenue without much effort on your part and without adding a ton of products or services to your product line? Today we're diving into the world of upselling, one of the most powerful techniques to increase your average order value and enhance your customer's experience. Stay tuned as we uncover the secrets behind effective upselling strategies, the psychology that makes them work and how you can implement these techniques into your site to get immediate results. So let's get started. Welcome to the eCommerce Made Easy podcast. I'm your host, k Saunders. When we started this business, all I had was a couch, a laptop and a nine-month-old. My main goal To help others. Now, with over 20 years in the eCommerce building industry, and even more than that in web development, I have seen a lot. I love breaking down the hard tech into easily understandable bits to help others be successful in their online business. Whether you're a seasoned e-commerce veteran or just starting out, you've come to the right place. So sit back, relax and let's dive into the world of e-commerce together. Welcome back to the e-commerce made easy podcast. Today, we're dive into the world of e-commerce together.

Carrie Saunders: 1:53

Welcome back to the E-Commerce Made Easy podcast. Today, we're digging into the ins and outs of upselling. This is a great exciting topic to me because when I see our customers really succeed, they do a great job at upselling. This is one of the many techniques you can use to really increase your revenue and boost your value and your perceived customer trust and love for you if you do upselling effectively. Now, what is upselling? Because sometimes we can get a little bit confused on what the definition of upselling is. Versus like cross-selling or bundling. This is a little bit different than those, so upselling is designed to increase the value of one purchase. Upselling typically focuses on a single product. So, for example, upselling can, especially in the technology realm, be a way to boost the next model up of something.

Carrie Saunders: 2:47

So let's talk about cell phones. We all are on our cell phones all the time, right, and many times when we go to update our cell phone, the place that you go to get it updated, they will show you the higher models of phone versus the basic models almost all the time. I would be surprised. They probably don't do a good job if they're not showing you the higher models, and why they do that is they want to increase your perceived value. So I'm an Android user Sorry for the Apple people out there, I get it. If you're an Apple person, I get it, as we're all like different and what we like, and for me I like Androids better.

Carrie Saunders: 3:26

So if I go to the store and want a new Android phone, they're going to show me, likely the model that I kind of talk about. You know, this is what I need. I'll tell them the features, how much memory, et cetera. I need a camera, how nice the camera is, et cetera. And they're likely going to show me that because that would be the kind thing to do is show me what I want, because that shows me that they're listening to me. So then I get more trust. But then what they're going to do would be also suggest well, if you like more memory, then you want to go to this model. Or if you like better cameras, they might talk to me, find out that I love to take photos. I would kind of consider myself an amateur photographer. Um, especially as soon as I get a bit more hobby time, I do plan to do that and I love to do it, and my free time is take great amateur photos with my phone and with my nice camera. So in talking with me, they're going to find out that I love to take good photos, and so they're going to show me the next model up, or two, to showcase what these other models can do for me when it comes to taking good photos. So a good upselling person is going to show you that next model and you can even do this on your website too is you know that they're interested in a specific product, you're going to want to show them the um upgraded versions of those products and their clear benefits as to why and we're going to talk about that here in a minute about how you really sell that Now, if you're a service provider, like we are, you can upsell selling a more advanced or higher touch point of service.

Carrie Saunders: 5:09

So for us, we do website hosting. We also do website customizations and things like that. Many times we will listen to the customer, tell them what we think that they are asking for and need, but then we'll also introduce a bit higher level. This is not only to help increase our revenue, but it's also to help them see where they can grow too. So it's kind of a win-win thing. You know, we're trying to service the customer and make sure that they aren't put into a box that's too small for them to grow in. So we might suggest some higher level services or products to help get them to the next level of their business. So you can do this with services as well. So if you're a coaching client, you might offer more one-on-one services. If you're selling courses, you might um have an ad, you know, have an option for one-on-one with you, again similar to coaching. Or you might have some group coaching with the course of your selling courses. So you can look at it as in you're kind of making a higher tier version of what you're already selling. Is the whole idea behind um upselling.

Carrie Saunders: 6:21

Now, one of the psychologies that it can do is it can really increase the concept of perceived value. So let's take that phone example. Again, I'm going to see a higher perceived value in the phone that's going to give me the quality photos that I want to be able to take of my kids and of nature. Those are the two things I take pictures of all the time with my kids and my nature. I love flowers, I love beautiful scenery, I love sunsets, I love taking photos of those. So making sure that I have a phone that's going to do those things justice is going to create a higher perceived value in the product as well as in the company who's taking the time to listen to what I love and what I need and they're willing to pay more. I would be willing to pay more when I perceive an additional value for this product or service.

Carrie Saunders: 7:11

I know I've also done this too with services that I bought from people. I have upgraded to a higher level of it when I felt like the perceived value of that update or upgrade of that original product was something a bit more in line with what I needed and brought more value and more bang for your buck. So usually that upgraded service doesn't cost a whole lot more for the consumer, but it really increases the value. The perceived value of it's going to be a lot more than typically they pay for it. So that's going to get them to really be convinced to buy that higher level product when it's appropriate for them. Obviously, we don't want to be pushy or bullying people when we come to upselling, but if you do it in a very kind and very thoughtful way, then you're going to get a lot higher revenue by being able to sell the higher leveled products or services. So when you want to do upselling, you want to be able to choose the right products to upsell.

Carrie Saunders: 8:15

So, like we've talked about in some of our examples, higher end models with additional features and benefits. You can think about this across. Electronics is a very easy example Could be laptops, could be computers, could be cell phones. You can also look at ways. Maybe you sell coffee makers Most everybody loves coffee, right, but if you give them a higher model that's going to do more things for them, then they're very likely going to pay a little bit extra for that higher model. I know for us we love to have a coffee maker in our office that can do one cup, it can do a large cup, it can do a travel mug, it can do a half pot or a whole pot. So it's really great that we can tailor to whatever somebody needs as far as their coffee needs at our office, so they can, you know, create the largest amount of coffee that they need and if they only want one cup, they can create one cup. So even as simple as coffee makers, you can upsell to the higher model that allows you this flexibility to have whatever size of brew that you want, and you can do similar with services.

Carrie Saunders: 9:24

You know you're going to be giving additional features, additional touch points, like we've talked about with the higher end versions of your services, and you want to make sure you ensure that the upsell offer gives a clear value proposition. You want to make sure it's very clear what extra benefits are they going to get when they go to the higher tier, so they can make an informed decision and aren't confused and we talk a lot about this on the podcast. A confused mind says no. So when you do this, you want to make sure it's very, very clear as to what benefits are getting for the extra cost. So just make sure you're very clear. For that Now, the best times to present an upsell option is usually during the product selection.

Carrie Saunders: 10:11

You can highlight the benefits of the upgraded product. You may even want to do a comparison, a side-by-side comparison, whereas this product gets these features and benefits and then the higher price adds on these extra features. Then they can easily kind of equate in their brain is this extra higher price product worth that extra amount of money to me? Do I need these extra features that are listed, you know, above the other one, and you can do this also at checkout. Offer a last minute upgrade opportunity. You can do this with physical goods and with services. I see this a lot on the internet and it's actually pretty effective. I know I myself has many have many times considered doing that upgraded service to something I am purchasing if I feel like it's the value that I actually need. And sometimes I don't pick it. Sometimes I do, but I don't feel like it's really pushy if it's done right and presented in a simple, clear and concise way.

Carrie Saunders: 11:12

Now there are some ways you can do this. You can do this via pop-ups. You can do it via banners and side-by-side comparison. Me personally, I prefer not to have the pop-up method. I know a lot of people get annoyed by pop-ups. I would be very cautious of using that method. That is a common method, though, but I'd be very cautious of it. I would lean more towards a banner that really shows and makes it very clear as to what the upgraded offer is, or a side-by-side comparison. Personally, I prefer the side-by-side comparison the most and you might hear the kiddies bells running they're running through the office right now but I prefer the side-by-side comparisons the most.

Carrie Saunders: 11:52

Okay, so when you're crafting your perfect upsell offer, you want to be able to emphasize value. You really want to highlight the key features and benefits. You want to use compelling visuals and descriptions and you really want to concentrate on what the higher price product will do for the consumer. What pain points will it solve or what pleasure will it give? Pleasure could be fun, think of it that way. So some example that I have is a higher priced phone model phone could be sold by making tasks easier, making tasks faster. Nobody wants to be slowed down. We're all busy, right, having a better camera, as I talked about. For me personally, I would like it would have a great camera for capturing the perfect moments in life. So hence this is pleasure and potentially, pain points are satisfied here because you're happier, because your phone is faster, you get to take the photos you want, you can do the games you want or the tasks you want. However, you use your phone and so making it a higher perceived value that it brings you both pleasure ie happiness and takes away some pain points, then that's going to be a higher perceived value.

Carrie Saunders: 13:02

Now, if we're talking about service-based products, a higher perceived value usually gives them faster and more complete results, so there's less guesswork and more guidance in case it gets stuck. So this gives them more confidence in their purchase and gives them more confidence that they're going to be able to get out of that product or service what they need and what they're investing into it. And this part mostly touches on pain points, but, depending on the service, it could be related to pleasure and making someone happier. So if you are selling a weight loss program and you know this is a pain point for them that they really want to lose this weight you can do this. But you offer this updated service that also provides some more exciting ways to do the weight loss, then that makes them happier and gives them pleasure too. So you can think about it both ways.

Carrie Saunders: 13:53

When we're talking about services and it looks like Mac wants to say hi, so if you're watching us on the YouTube video, you get to see Mac right now. On the version of the podcast, he came to say hi, okay, so back to where we were. So there's some best practices on doing this. We want to make sure we balance between boosting sales and enhancing customer experience and not annoying the customer. So we want to make sure their offers are relevant and add value. So don't just willy nilly add upgraded options to your services and they're just when the cat tail if you're on the. If you don't watch us on YouTube, you might want to sometimes, because we have little cat moments in here and then back to where we were.

Carrie Saunders: 14:34

So we also want to make sure avoid being overly aggressive or pushy. That is going to really really turn off the customers to really do it like you're talking to your best friend and telling them about this great product that you love and why you love it and how you use it. Comfortment that way versus a buy my product. Buy my product. I'm really desperate for money. Can you please buy this product? You want to make sure your language is right here, and I've seen both ways. It's really easy to fall in that desperation If you're not careful. You need to be, like I said, talking to your best friend. We all love to share the perfect product or services that we have purchased in our lives. We'd like to help others shortcut where they are All right. So we also want to ensure relevance, so you can use customer data to tailor to your suggestions. Customer data to tailor to your suggestions, all right. So let's talk about some common mistakes to avoid.

Carrie Saunders: 15:31

So we want to avoid aggressive upselling. We touched on this a little bit, but I want to make sure we emphasize this. This can really lead to customer frustration and car abandonment and ultimately losing trust in your business. So make sure you are not aggressive with the upselling. I have seen some websites that are very aggressive. You decline the offer and then it comes back again or they come back with another one. Make sure you're not doing something along those lines.

Carrie Saunders: 15:56

We want to be very gentle and very caring and very conscious about our upselling techniques and we want to make sure the timing is right. You want to offer the additional products at the right time, which means probably not too early. You want to gain their trust first. You also don't want to do it too late in their buying process when their mind is already completely made up that they want the specific version of the product. You kind of want to do it right there in the mid area and you might want to use some analytics and this gets a little bit techie and it's going to be a little hard to do on the podcast, but you might want to do some analytics to monitor and adjust based upon some data. So what you can do is experiment with some things. Use a tool like Google analytics or some sort of analytics tool that you already have.

Carrie Saunders: 16:52

Provide the upsell at a certain stage of checkout, see how well it does over a certain period of time and then repeat the process again, where you put the upsell in a different place in your checkout process and then evaluate do you see a significant difference between the two times? If they're kind of close, then you may want to retest that out again to make sure there wasn't some sort of anomaly going on the timing of the year when you did it, et cetera. So you might want to play with this a bit and continue to refine and continue to tweak your offers too. It could be not necessarily where you place it, it could be the words you use. Have some others that you trust look into it and give you some feedback as to whether they were pondering or enticed to take this upsell offer. Talk to some trusted business friends or some trusted personal friends to take a look at your offer and give you some honest feedback. Obviously, you want to pick the right people, because the right people are going to tell you pretty straightforwardly you know whether they think it's done well or not. So make sure you're picking those specific people when you do that, all right.

Carrie Saunders: 17:59

So let's recap this episode on upselling with your business. So, first off, we talked about what upselling is. We also gave some examples of products and services and how you could use those to have upsells for those, the psychology and why upselling works, how to effectively upsell, what to avoid when upselling and how to refine your upselling process. So that's all we have this week's episode. Thank you for joining me. Be sure to visit our show notes and other episodes. Show notes on the e-commerce made easy podcastcom website. If you're watching on the YouTube channel, be sure to hit the subscribe button, and if you're listening to this on a podcast app, please hit the follow button wherever you're listening so you don't miss out on any upcoming episodes. And if you're loving my e-commerce made easy podcast, I would be thrilled if you rate and review us on Apple podcasts. Your ratings or reviews help me reach more listeners, empower more people like you thrive in the online business world. Thank you again for listening and we will see you next week.