We’ve all experienced a frustrating upsell – a pushy attempt to sell us something we don’t need or want. But when done right, upselling is a powerful way to increase revenue from your existing customer base. The key? Creating offers that are genuinely compelling. It’s not about tricking people; it’s about adding value and solving more of their problems.
So, what makes an upsell offer truly stand out? It comes down to understanding what motivates your customers and structuring your offer to align with those motivations. Here are a few insights we’ve found consistently deliver results for Australian SMEs.
- Relevance is paramount: The upsell needs to be directly related to the customer’s initial purchase. If someone buys a coffee machine, offering them a premium coffee bean subscription is relevant. Offering them a vacuum cleaner? Not so much. Think about what naturally complements their existing choice.
- Perceived value must exceed cost: Customers need to feel like they’re getting a great deal. This doesn’t always mean a discount. Bundling products, adding extra features, or offering exclusive access can all increase perceived value. For example, a software company might offer premium support as an upsell – the cost is justified by the peace of mind it provides.
- Scarcity and urgency can help: Limited-time offers or limited stock can encourage quicker decisions. However, use this tactic ethically. False scarcity damages trust. A genuine ‘limited edition’ product or a promotion running until the end of the month works well.
- Highlight the benefit, not the feature: Don’t just tell customers *what* the upsell is, tell them *how* it will improve their lives or solve a problem. Instead of “Upgrade to our Pro plan for more storage,” try “Unlock unlimited storage and keep all your important files safe and accessible, anytime, anywhere.”
Finally, remember to test your offers. What works for one segment of your audience might not work for another. A/B testing different upsell strategies – varying the price, the offer itself, or the timing – will help you optimise your approach and maximise your return. By focusing on relevance, value, and clear benefits, you can transform upselling from a potential annoyance into a win-win for your business and your customers.
To get started, analyse your recent sales data. Identify which products are frequently purchased together and brainstorm potential upsell offers that would naturally complement those purchases.
