Up-selling is a common practice applied in the e-commerce world.
But what exactly is up-selling? And how does it affect the performance of businesses?
Up-selling is when the seller, mostly call center representatives, persuades the purchaser (or the customer) to spend more than they had wished-for in the beginning and this is by recommending an alternative which is priced higher than the item the customer is currently mulling over.
There are also other types of up-selling. “Bundle sales” or “add-on sales” are combined with up-selling as well. However, with the purpose of having an exact view of what is the most efficient, it is essential to look at these aspects as completely separate practices in e-commerce.
Here’s a great example of an effective and pure up-selling: A sales representative gives a recommendation to a customer to just spend an extra $75-$150 on a more premium Smartphone than spending her money to get an extended warranty for the cheaper smart phone. This is a genuine up-sell since it used a unique type of logic, written or oral, that indeed made sense.
Product recommendations are responsible for the 10-30% average of e-commerce site income according to Forrester research analyst Sucharita Mulpuru. Amazon reported that 35% of its revenues were as a straight result of its up-selling and cross sales efforts back in 2006.
Knocking on opportunity’s door
There’s one way to guarantee what revenue-boosting approach will offer for a particular business – and that is to test and apply this strategy.
A study of the Predictive Intent’s e-Commerce customer base on the other hand, has revealed that showing slightly higher priced alternative than those in your visitors’ immediate view drives an average of over 4% of sales – over 20 times the normal found on most e-Commerce sites “recommended products” options.
What should call center reps do to help boost revenues through up-selling?
Segment Offers. Divide offers without hesitation so that call center representatives can recognize and suggest to suitable customers immediately. Sales representatives may segment offers by new customer and existing customer for example.
Create customer personas. Once you have established these customer personas, apply them to each product or service offer. For example, if you are an internet service provider and speaking to a new client who has a couple of young adult children, you would offer and suggest to the customer to avail the family phone plan offers. With this technique, it will allow the sales representative to proficiently direct the customer towards purchasing a higher priced product leading to a higher sale.
Share additional valuable information. Representatives should always be reminded to share any product or service information that will add value to the sale. If a customer is buying a new air-conditioner for example, be sure to let them know about the patented noiseless technology, almost zero carbon emission and other cool features. Given all air-conditioner models have these standard features; it’s always an excellent move to remind customers of the benefits they’ll get. And this will boost their brand loyalty and purchase satisfaction.
Provide more room for improvement. Train your representatives further. Guide sales representatives to look at up-selling as the supreme form of customer service. Learning the excellent approach in persuading customers to buy for future needs boosts both revenue and customer loyalty.
Customers nowadays are too clever to distinguish when a sales representative is trying to persuade them to spend more. But what reps should push is the value of the product or service – which is the bottom line. Guiding customers to get exactly what they need and making them feel good about their purchase WILL not only generate sales and revenue, but also make them happier as well.