What is upselling?
Upselling is a sales tactic that involves persuading customers to buy a more expensive, upgraded, or premium version of a purchased item or other things in order to increase the size of the sale.
Upselling is the practice of selling to a consumer who has already made a purchase rather than a new one. Existing clients are also easier to sell to: the likelihood of selling to an existing customer is 60%–70%, compared to 5%–20% for a new customer. Upselling also becomes easier over time. First-time customers are 27 percent inclined to return, but this rises to 54 percent following their second or third purchase.
Merchants can enhance the average order value by strategically upselling (AOV). This is, without a doubt, the most significant advantage of using upsell. Upsells placed at key points in the customer journey can assist increase purchase quantities.
Upselling also aids in the rise of conversion rates. Buyer intent is high, thus they’re more likely to complete the transaction, because these post-purchase offers are targeted to your consumer at a convenient point in their journey.
However, the advantages aren’t one-sided, and many of them extend to the customer’s experience as well. You can ensure that the consumer chooses the proper product for them and that they have everything they need to use it by efficiently upselling and cross-selling.