Upselling is a sales technique that encourages customers to purchase a higher-end product, an upgraded version, or additional features compared to their original intended purchase. This strategy increases average order value by showing customers enhanced options that provide better value or more benefits.
Key Characteristics:
- Value-focused: Emphasizes additional benefits rather than just higher price
- Relevance: Offers are closely related to the customer’s original selection
- Timing: Typically presented during the shopping process or at checkout
- Comparison: Often highlights differences between standard and premium options
Benefits:
- Increased average order value
- Higher profit margins on premium products
- Enhanced customer satisfaction with better-suited products
- Improved customer lifetime value
Effective upselling approaches include feature comparison charts, “good-better-best” product tiers, and limited-time upgrade offers that create urgency.