Upselling is a sales technique in which the seller induces the customer to purchase more expensive items, upgrades or other add-ons in an effort to make a more profitable sale. While it usually involves the marketing of more profitable services or products, it can only expose the customer to other options that may not be considered (Different techniques are cross selling where sellers try to sell something else). In practice, big businesses usually combine upselling and cross-selling to maximize profits.
Video Upselling
Upselling vs cross-selling
Upselling is a practice in which businesses try to persuade customers to buy higher end products, enhancements, or additional items to produce more satisfying sales. For example, a salesperson can influence customers to buy the latest version of an item, rather than a cheaper model now, by showing additional features. A similar marketing technique is cross-selling, in which the seller suggests the purchase of additional products for sale. For example, he might say, "Do you want ice cream to go with the cake?" It is beneficial for businesses to use both techniques to increase revenue and provide a valuable consumer experience. However, research shows that upselling is generally more effective than cross selling.
Maps Upselling
Example
- suggest a premium brand of alcohol when the brand is not determined by the customer
- sells an extension service contract for the tool
- indicates that the customer is purchasing a faster CPU, more RAM or a larger hard drive while serving that customer's computer
- sell luxury finishing on vehicles, such as leather seats
- suggests brands of watches that the customer has never seen before as an alternative to being considered
- indicates that the customer purchased a wider car leasing package
- ask customers to replace food at fast food restaurants, or add additional toppings to pizza
- use the mobile check-in service to send seats upgrades or service offerings to the flyer
Technique
Many companies teach their employees to improve their products and services and offer incentives and bonuses to the most successful personnel.
The common technique for successful improvement is to realize the customer's background, budget, and other budgets, allowing sellers to rise to better understand what the value of the particular buyer is, or it might be valuable.
Another way to improve is to create fear over the durability of purchases, especially effective on expensive items such as electronics, where an extended warranty can offer peace of mind.
Overlaps with cross selling and plus selling
It would be difficult to divorce the three techniques from each other, given that the differences in each technique are small. All the techniques that are adopted and applied effectively within the company are important strategies used to increase revenue among current customers.
An add on sale can be defined as the sale of additional goods or services to buyers. In practice, additional sales can be seen in the retail scenario; customers can buy suits for new jobs, after the size and color meet customer satisfaction, the seller will assume that they also need shoes, socks, vests, and belts to carry. This is a sales technique in which the seller tries to encourage or entice customers to buy something extra, which may or may not be more expensive, but will still bring up the total amount of sales. The addition of a sale is much simpler than cross selling or selling up, this is because new items that buyers expose to buyers may be cheaper than the products they buy, but the fall of this technique is the proverbial "No" for products that are presented more often. Usually two for one offer or "buy one pair and get the second half price price" is the most common way to transfer your sales to additional sales. From a customer's point of view, additions can be seen as sellers trying to get buyers to spend more money to bring up point of sale. This is why adding can be difficult, the intimacy and relevance of the suggestion is important, the seller wants to make sure that the items displayed are still in line with the customer's initial thoughts and ideas. If they are not likely to lose sales.
As told in the Journal of Relationship marketing by Kamatura Wagner cross selling is a valuable sales technique used by sellers to increase sales by turning single product buyers into multi product buyers. Cross selling is a technique whereby the seller will try to increase the sales value by suggesting the accompanying product. Suggest related products or services to customers who are considering buying something. Cross selling is mostly seen in restaurants or fast food restaurants, the term "do you want fries with it?" or "do you want to increase your order?" is an example of cross selling techniques. Cross selling can be most effective when customers need help - where they come to the seller for cross selling purposes. Since the customer has started the sale, the mind set is already in the company and its products. This will make it easier for the seller to do the technique and make it successful.
An example of cross-selling over the telephone can be that the customer has just transferred the bank and set up his account with his new bank. Once the account is created, the bank teller will offer cross selling to sign up for their internet banking application which will allow them to access their account details and pay their accounts online. If cross selling is done correctly, it will be seen as a service, not a sales pitch. Weaknesses to cross selling can be seen as the same as upselling. The main draw is known as "over touching" customers who are more modestly meaningful, giving too many cross-selling options may result in customers ignoring the effort provided, and can degrade the customer's sensitivity to future sales offerings.
Ethics
When upselling for higher cost items or add ons to customers for goods and services, it is advisable not to drive sales as it may become unethical. There are cases where driving sales to customers has caused legal problems, as some retailers may use confusing terms or say half the truth to sell products while customers are unaware of this. In New Zealand, the Consumer Guarantees Act of 1993 states that if customers are not satisfied with the goods or services they are entitled to get a refund, or the business in question should compensate them for the problem.
See also
- AIDA
- Feed and redirect
- Preferred architecture
- Sales contract
- Cross-selling
- Freemium
- List of marketing topics
- Marketing
- Marketing permissions
- Promotions
- Sales
- Sales techniques
- Value added selling
- Downloadable content
References
Source
- Hoovers. (n.d.). How to Cross Sell & amp; New Sell | Proven Sales Technique | Hoovers. Retrieved from http://www.hoovers.com/lc/sales-marketing-education/how-to-cross-sell-up-sell.html
- Kearney, J. (2016, 2 February). Social Spot WiFi | Turn Your Free Wifi into a Social Marketing Machine. Retrieved from http://www.socialspotwifi.com/
- Lazazzera, R. (2015, 4 March). How to Increase Earnings by Upselling and Cross-selling. Retrieved from https://www.shopify.co.nz/blog/17579484-how-to-increase-revenue-and-improve-the-customer-experience-with-upselling-and-cross-selling
- Low, J. (2015, May 12). Quick Tip for Upselling & amp; Cross-Selling - Business.com. Retrieved from http://www.business.com/ecommerce/quick-tips-for-upselling-and-cross-selling/
- Maximizer. (2015, 24 June). 5 Basic Upselling Techniques - Maximizer Blog. Retrieved from http://www.maximizer.com/blog/5-basic-upselling-techniques/
- Bohutinsky, C.H. (1990). Potential of Aircraft Demand. M.S. Thesis, Massachusetts Institute of Technology, Cambridge.
- Lazazzera, R. (2015, 4 March). How to Increase Income and Improve Customer Experience with Upselling and Cross-Selling . Retrieved 26 March 2016, from Shopify: https://www.shopify.co.nz/blog/17579484-how-to-increase-revenue-and-improve-the-customer-experience-with-upselling-and-cross - sell
- Levine, L. (1996). "Why cross-selling and upselling seems difficult to implement," Telmarketing.
- Low, J. (2015, May 12). Super Sales Strategy: Quick Tip for Higher Sales and Sales. Retrieved March 24, 2016, from Business.com: http://www.business.com/ecommerce/quick-tips-for-upselling-and- selling cross/
- Paul R, P., Sheehan, M. J., & amp; John I, C. (1997). Journal of Business and Industrial Marketing.
- Robert C. Blattberg, B. -D. Database Marketing: (Analyzing and Managing Customers).
- Schiffman, S. (2005). Upselling Technique (It really works!). Adams Media.
- Wagner, K. A. (2008). Journal of Marketing Relations: Cross-selling.
Source of the article : Wikipedia
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