Branding and Marketing

How to Upgrade Business With Upselling Products?

Glory Simmons

06 Feb 2023 on Branding and Marketing · 9 min read

upselling products

9 min read

Acquiring new customers for a business is the most challenging part for marketers today. It is very expensive to grab the attention of the target audience and make them visit your store or website.

Focusing on existing customers results well and you can make them buy your new products as they have already experienced your service. This is where upselling works. Upselling is the most used term in marketing in recent days.

77% of revenue for any B2B company comes from its existing customers in the form of upselling products, cross-selling products, and renewals. By making use of these marketing strategies, you can retain your customers and improve customer satisfaction.

What do you mean by upselling products?

Upselling products is a unique sales strategy that encourages customers who plan to purchase a product or service, to upgrade to a higher or better version of the same product or service. It is easier to sway customers who have decided what to buy by just giving a few add-ons to the same product.

The customer would have already done enough research about the product or the service and has set his mind to buy the product. So, there is no need to convince him about the product but at the same time, you can make him understand the benefit of the features of its upgraded version and can easily make him go for the higher model.

upselling products

Difference between upselling and cross-selling

When we talk about upselling, we will come across the term cross-selling. Both may look similar but they are two different sales techniques. Cross-selling is nothing but selling related or complementary products to customers who intend to buy a product.

Both sales techniques are applied in the mid to late stages of the conversion funnel. These two main strategies will effectively increase the average order value and also the profit level of any business. Upselling and cross-selling drive sales through recommendation.

Here we will discuss more upselling products and their importance for any business.

Why upselling is important for business?

Upselling products can be a valuable service to customers. Whatever sales technique you use with your customer will bring a negative impact as customers can easily understand your intention. But still, if upselling is done in the right manner, you can see unbelievable results. Now let us identify the merits of upselling products from the business point of view.

Builds better relationships with customers

First, you need to keep in mind that upselling products or services are not a dirty tactic. If the intention is to help or guide customers, it will become a win-win situation for your business and your customers.
If the upgrades or add-ons you recommend to your customers eventually benefit your customer and also makes a good profit, then it is easily accepted by your customers. They will find your intention to be true and this will elevate your relationship with them.

Personalizes customers’ experience

Customers show interest in products that come with recommendations and add-ons. This is why they always look for a live chat whenever they enter any product website. Companies that offer live chat support gain a 2.5 times annual increase in upselling and cross-selling.

To enhance customer experience with your brand, product, and service, you need to be more attentive and should provide proper assistance whenever they need it. It is not possible to stay connected all the time, in this case, you can use live chatbots that will assist customers in choosing their product.

Easier to upsell an existing customer

Generating a lead is more expensive nowadays. But convincing an existing customer about our new product or service is much easier as they have already trusted our brand. You just need to pitch your upgrade products at right time.

When you think about the marketing expense that you need to spend to acquire new customers, you would prefer to choose your existing customers. Not only money-consuming, but it is also time-consuming.

upselling products

Increases Customer Life Time Value

Customer Lifetime Value is an aspect that every business will analyze for each of its customers. It is the net profit contribution that the customer has made with the company over a while. When the CLV is high then it means the customer has generated more revenue for the company.

Upselling products is one of the best sales strategies that would increase the CLV of a customer. It will make customers a more reputable asset for any business and the company will put more effort into retaining those customers.

Optimizes the value of each sale

Upselling products will increase the order value simultaneously. Say for Eg, if a customer plans to buy a TV for Rs. 20000 and after you explain to him about the upgraded smart TV version which costs Rs. 45000 and the customer decides to buy the upgraded version then the order value increases.

It is all up to the marketing team to study the customer and know his capability. We need to pitch the product to the right customer which is more important in upselling. A customer who had his budget for 20k should be well enough to go for an upgraded version that is for 40K. Without studying the customer properly, you may get the result you expected.

Boosts sales and revenue

When you make upselling a successful sales technique then the company will keep upgrading its product as there is more scope to sell them to its existing customers. Many companies fear upgrading their product as they stick on with their existing sales and revenue and they do not want to take the risk.

But when you put a bold effort into product upgradation and focus on upselling products then you can expect unbelievable sales and revenue growth. This is one of the main marketing and sales techniques to survive in the market.

upselling products

Best upselling practices to escalate the profit

When compared with cross-selling, upselling is 20 times more effective for any business. All you need is to follow simple and effective techniques that will boost your sales. You need to have operative methods for both brick-and-mortar stores and also online stores.

Below are a few Upselling practices that will help you in building your brand and expecting higher ROI.

1. Incentivize your upselling strategy by adding rewards to your customers who spend more on your product. Eg. Offering free shipping for the ordered product.

2. Provide a comparison chart and let customers compare the product they choose along with its upgraded version.

3. Maintain a reasonable price range for the product you plan to upsell. If the customer is planning to buy a product for Rs. 100, you cannot upsell a product worth Rs. 200, instead, it can be up to Rs. 130. Don’t be too aggressive in making your customers buy. Let them have the space to decide on buying the product.

4. Let your customers know the stock availability so that it will create a sense of urgency to buy the product. Eg. Only 2 items left or the offer ends in 2 days.

5. You can make use of customer data and can understand their preference and can offer more personalized products.

6. Educate your customers about what they are going to lose by not taking this upselling offer.
Always use the right language while communicating with customers so that they will not get offended by your language.

7. Provide options to customers but at the same time don’t overwhelm them with more choices that will confuse them and they may even drop the idea of buying.

Upselling techniques that can be implemented in your business

Understand your customer – this is the most crucial aspect that any business person needs to do. You need to learn more about your customer and make sure that you spend your time on customers who are worthy enough.

Get to know what they want – customers’ buying styles keep changing often and you need to go according to that flow else you will lose the race. Without knowing what customers have in their minds, there is no point in using upselling strategy. Spend some time analyzing their needs and then start the upselling process.

Give genuine offers and discounts – on some cases, you may need to provide offers and discounts to attract more customers. The offer and discount you announce should be reasonable and customers should make a profit out of it. Just for word’s sake, you should give an offer with a meager amount of variation.

Add recommendation products as pop-ups – when you are running an eCommerce store then you need to have pop-ups that will keep recommending customers about add-ons for the product they choose. This will convert their mind to buying the product.

Display social proof to convince buyers – customers will not merely listen to your marketing person and will decide to buy. They will always seek proof from any other customer who has already tried the product. Social proof is the right technique for upselling. You can even check with the leading eCommerce site, Amazon as it does this job perfectly.

Know your product in detail – this is where many companies fail as they may not be strong enough in explaining their product to customers. It is very essential to have proper product training and should be well-versed in all features and functionalities of the product. Without product knowledge, you cannot convince customers to buy them.

When should you upsell products?

Upselling cannot be done at any stage of the conversion funnel. For eg, if a customer is just searching for some products on your site and storing them in their wish list, immediately you cannot pitch an upgraded version of the product. There are stages when you can upsell products

Before purchase – as soon as the customer adds a product to his cart to purchase, at that time you can display a recommendation at the bottom of the page that will be visible to them and can make them decide on buying it.

During purchase – this is when the customer enters the checkout page. You can use pop-ups and recommend products that can change customer mind to buy them also.

After purchase – you can make use of personalized emails and keep updating customers about new arrivals and upgrades.

Learn to upgrade your business by upselling products

The primary objective of upselling is to elevate your business income and increase customer loyalty toward your brand. You need to have a clear idea about upselling and should know the way of implementing this technique to see better results.

Hope you have gained enough knowledge about upselling products. Find the right time to apply these techniques and practices and upgrade your business among your competitors and survive the market easily.


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Glory is a creative content writer whose writing has a deep connection with users and can provide SEO-friendly tech-driven content. Being a freelance content writer, all her writings meet the demands of any online business, solopreneur, start-up, and brand.