Upselling

What is Upselling?

Upselling is term known for a sales technique used to get a customer to spend more by buying and upgraded from freemium to a premium version of what’s being purchased. eCommerce businesses often merge upselling and cross-selling techniques in an attempt to increase order value and maximize their profit.

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Picture 1. Upselling

Why is Upselling important?

Even though sales techniques bring negative feelings in us, they can, in fact, improve our experience when buying. That way retailers can build deeper relationships with their customers. With upselling they make customers feel like winning because they got premium, whatever it may be. Having that in mind, customers who got greater value for their money will surely go back for more.

The difference between upselling and cross-selling?

Even though both techniques are here to optimize companies revenue there are some significant differences. While upselling aims to persuade the customer to buy a more expensive version of the same product, cross-selling focuses on personalized recommendations of related products. Let’s say you want to buy new boots, the upselling tactic would be to persuade you to buy leather boots, while cross-selling tactic would be if we were offered socks, shoelaces, etc.

Picture 2. Cross-selling

All things considered, it is not a bad thing, neither of them. As long as customers needs are satisfied. If those tactics start to use consumers without providing them value for the extra money they pay, they are out of bounds of selling techniques.

Of course, that is not a common practice, yet sometimes in our lives, we all witnessed it.