Upselling is a powerful sales technique that can significantly boost revenue for eCommerce businesses. By encouraging customers to purchase a more expensive or upgraded version of a product they’re already interested in, merchants can increase the average order value and drive higher profits. Let’s explore the upselling meaning, explain why it’s an important strategy for BigCommerce sellers, and provide real-world examples of effective upselling in action.
What is upselling meaning?
Upselling is a sales and marketing strategy designed to persuade customers to buy a pricier item. When employing upselling, you often highlight more costly products, profitable services, bundles, or package deals.
To illustrate the upselling meaning, if you’re a mobile phone retailer and a customer is checking out with an entry-level phone, you might suggest an upgrade to a mid-range or premium model, thereby boosting your average order value.
Upselling vs. cross-selling
Upselling and cross-selling are both valuable sales techniques that businesses can leverage to increase revenue, but they operate in slightly different ways. Upselling focuses on convincing customers to purchase a more expensive version of a product or service, whereas cross-selling encourages them to add related or complementary items to their existing purchase.
To illustrate the difference, consider the example of a computer sales business. In an upselling scenario, the salesperson would aim to steer the customer away from the mid-tier laptop they were initially considering and toward a top-of-the-line model with cutting-edge specifications.
On the other hand, a cross-selling approach would involve the same salesperson encouraging the customer to purchase the mid-tier laptop, along with additional accessories that enhance the user experience, such as a protective case, a wireless mouse, or other complementary peripherals.
Upselling examples
Take a look at standout examples of upselling meaning that can inspire your approach for this sales strategy!
Showcase featured products
This technique is particularly useful for new online stores that may not have extensive customer browsing data yet. By highlighting your best-selling items or personal favorite products on your homepage and category pages, you can encourage customers to consider upgrading their selections to higher-priced options.
Draw attention to your new arrivals
Promoting fresh inventory that your repeat customers haven’t seen yet can be an excellent way to capture their interest and drive additional sales. eCommerce businesses often find great success with this approach, as customers are typically excited to discover new products they haven’t had the chance to explore previously.
Leverage seasonal trends
Promoting relevant seasonal merchandise on your homepage allows you to capitalize on customer interest in timely offerings. To enhance the effectiveness of these seasonal displays, consider pairing them with special promotions or discounts, which can further incentivize customers to upgrade their purchases.
Generate daily offers
These time-sensitive offers have a way of grabbing the attention of returning visitors and creating a sense of urgency that encourages immediate purchases. When crafting your daily deals, be sure to review your sales data to select the most profitable seasonal items to feature, such as popular sweaters during the colder months or top-selling outdoor gear during the summer season.
Promote your best selling items
To identify your best selling items, you can analyze various data points, such as the number of times a particular product is sold, the number of visits to a specific product page, and the frequency with which customers add certain items to their carts.
Your cart page is an excellent place to highlight these top-performing products. When visitors are reviewing their order, they can easily spot and add your most popular items to their purchase, further increasing the value of each transaction.
Offer similar products or alternate options
This solution is typically implemented on your product pages, allowing visitors to compare their options and feel confident that they are making the right choice. You can get creative with the labeling for these “similar products” modules, making them more eye-catching and unique to capture your customers’ attention.
Display products other customers have viewed
Promoting products that other customers have viewed is also one of the most effective forms when it comes to upselling meaning. People are more likely to buy items that have generated interest among their peers, so this approach can be a powerful tool for driving additional sales through upselling.
Highlight customer reviews
Highlighting items with glowing feedback can help spike their popularity and convince visitors to invest in higher-priced, better-rated options. If you have a few premium products that have garnered amazing reviews, those could be an excellent starting point for your upselling efforts.
Recommend products in a “mini cart”
These mini carts provide customers with a convenient way to view their current order without navigating all the way to the checkout page. By suggesting relevant add-ons or complementary items in this mini cart, you can make it effortless for shoppers to expand their purchases.
Offer an upgrade
Many eCommerce businesses also find success with upselling by offering an upgraded version of a product. To identify the best opportunities for these types of upsells, review your sales data from repeat buyers. Look for products that consistently sell well or upgrades that pack in significant additional value. By presenting customers with a compelling upgrade option, you can encourage them to invest in a more premium offering.
Best practices for upselling
Upselling can be a powerful tool for generating additional income when implemented thoughtfully and strategically. Here are some best practices to keep in mind if you want to understand upselling meaning:
- Don’t get greedy: While upselling can increase revenues, it shouldn’t be treated as a shortcut to big profits. Avoid recommending products or services that are significantly more expensive than the original item being purchased. Overly aggressive upsells in the short term may leave buyers unsatisfied, preventing repeat purchases.
- Prioritize the customer’s needs: Remember that your ultimate goal should be building long-term relationships, not just maximizing immediate sales. Stay focused on understanding and meeting your customer’s needs. Approach the upsell as a way to provide additional value, not just as a means to increase the transaction size.
- Educate customers: When you have in-depth product knowledge, you can explain the benefits of the premium option without coming across as overly salesy. Offer side-by-side comparisons so customers can clearly see the value in upgrading.
- Bring a sense of urgency: Combining upselling with limited-time offers or discounts can create a sense of urgency that encourages customers to act quickly. For example, try offering an in-the-moment-only discounted price on the upsell.
How to Achieve Effective Upselling with Atom8
The BigCommerce Automation app empowers you to streamline your sales efforts and boost revenue through effective upselling strategies. By leveraging the platform’s automation features, you can segment customers based on their behaviors, such as top buyers and new customers, to deliver personalized sales campaigns.
Additionally, you can group your products and create custom pricing rules and promotions for different product tiers, making it easier to incentivize customers to upgrade. You can also utilize re-engagement emails to follow up with quiet buyers, recapturing lost sales opportunities and driving additional revenue growth.
With this software from GritGlobal, you can optimize your upselling tactics, personalize the customer experience, and unlock new pathways for sales success on BigCommerce.
In Conclusion
Upselling is a powerful sales strategy that can significantly boost revenue for BigCommerce merchants. The examples and best practices covered in this post demonstrate how you can effectively implement upselling on your BigCommerce store – from showcasing featured and seasonal products to creating compelling daily deals and offering strategic product upgrades. Contact us to learn more about upselling meaning and enhance your BigCommerce store’s upselling efforts to boost revenue!
