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Upselling is a sales technique used to maximize revenue from each sale by offering additional, complementary products during checkout. When executed correctly, the upsell can boost revenue, add value for the buyer, and cement a long-lasting relationship with your customers.
The Art of the Upsell: Why It Works
While upselling was once considered a pushy sales tactic, ecommerce has paved the way for an interactive marketplace where customers not only seek deals tailored to them—they expect it. A recent report from Accenture revealed that 75% of consumers are more likely to buy from retailers that recognize them by name, recommend options based on past purchases, or acknowledge their purchase history. On the flipside, 74% of customers feel frustrated when website content is not personalized.
63% of consumers say they’d think more positively of a brand if it gave them content that was more valuable, interesting or relevant –Rapt Media
In a time where customer happiness can make or break a brand, Upsale is a valuable tool for the entire customer journey. Upsale considers the history of your customer’s purchases and their items of interest today. It also sets a foundation for long-term loyalty:
- 59% of customers say personalization influences their shopping decisions (Infosys)
- 77% of consumers have chosen, recommended, or paid a premium for a brand that provides a personalized service or experience (Forrester)
- More than 78% of consumers will only engage offers if they have been personalized from previous engagements with the brand (Marketo)
The art of the upsell, then, lies in providing value for the customer. Truly, customers do not mind being advertised to, so long as what you have to offer is relevant to their needs.
As the marketplace becomes increasingly saturated with choices, the retailers who seek to know, and meet, their customers’ needs will break apart from the crowd.
The Art of the Upsell: Use Case Scenarios
Successful store owners know: selling to current customers is much more cost-effective than pursuing new leads. Many Miva merchants utilize this feature to suggest variations or complementary items, drawing attention to products relevant to the customer’s interests.
Take health food manufacturer and Miva site Bare Bones Broth for example. When customers add products to cart, they are instantly served with recommendations for other variations of the product. This allows customers to browse other items they may have never seen or considered, and opens up the possibility for added revenue.
BTO Sports is another retailer utilizing the Upsale feature on Miva Merchant 9.0 to its advantage. In this screenshot, a product detail page for fly racing gear, BTO Sports offers variants for a customer to customize the outfit. Additionally, the extreme sports retailer has tacked on the option to add gloves—a complementary item—to the thrill-seeking shopper who may have never otherwise considered this product.
While businesses primarily use Upsale to suggest product variations and complementary items, inventive retailers have also adopted this feature to:
- Suggest a premium brand of the desired product
- Sell an extended service contract with the item
- Propose a faster, newer upgrade
- Offer a limited-time discount for buying the product in a specified window of time