In this article I will give you some valuable tips about how exactly you can increase upsells in your retail store business. These are tested and tried hacks that will certainly carry your business through rough times of market stagnation and economic slowdown.
What Exactly Is Upselling And How It Works?
Upselling simply means offering your customer a pricier version of a given item, be it an electronic gadget or a power tool. Think of it as asking the buyer if they want to pay a little extra for the premium version of certain product.
Upselling requires some soft skills and the right approach to each client. However, when done right it boosts your sales and helps your customers choose the best products for their needs.
The key to upselling success is doing it properly and at the right time.
Upselling Dos & Don’ts
Never attempt to upsell a product that’s irrelevant to your customers. Also, when upselling, never try to push your customers to buy the said product, or else you may even lose the initial sale.
You must always provide extra value for the higher price of the product that you are trying to upsell. Without doubt, getting a customer to upgrade their purchase or buy an additional item will bring you profit, but the deal should benefit your customer just as much.
Questions You Need To Answer Before Trying To Upsell Something
1. Does The Upsold Product Effectively Complement The Item My Customer Is Buying?
Upsells only work if they’re relevant to the original purchase. When you’re upselling an item, make sure that it’s really a better version of what your customer is buying.
2. Will The Upsold Product Really Benefit My Customer?
Even if an add-on item complements another of your product on the shelf really well, it may still be absolutely useless to the customer. For example, while a certain type of lens goes with that camera your customer just bought, it wouldn’t be a good upsell if they didn’t need it at all.
To avoid any embarrassing situations, get to know your customers before trying to sell them more merchandise.
You can, for instance, ask how they’re going to use the product, then if you have items that would benefit them, go ahead and bring them up.
3. Can My Customer Afford The Product I Am Trying to Upsell to Them?
If the customer looks like they’re on a budget or they’ve made it clear they only want a certain product, then it’s best to respect their wishes and don’t try to sell them anything else. You may chase them away if you insist on upselling.
Strategies To Take Your Upselling Tactics To The Next Level
If you think you know the answers to all three questions above, then you can confidently suggest upgrades or additional products to your faithful customers. And to help you close more sales, here are some proven strategies you can use in your retail store business.
1. Make Your Customers Aware of the Extra Value They’re Getting
Listing out features or specs only works if you are selling a specific product to a customer that already knows a lot about it. The truth is that the human mind is more responsive to visual stimulation.
To effectively upsell something, you need to make people see the extras they’ll be paying more for. Try to apply this strategy in your retail store. Use vivid images illustrating how exactly the upgraded product is better than its basic version.
2. Do You Know How The Rule of 3 Works?
When you’re upselling, see if you can apply The Rule of 3 to your advantage. This entails giving the buyer three options for their purchase. Let’s call these options the Requested, the Alternative, and the Dream.
The Requested is that basic version of the product I mentioned above. It’s both accessible and affordable.
The Alternative is a higher-class product of the same kind that still relates to the Requested item, but it costs a bit more, as it’s got one or two advantages over the Requested product.
Then comes the Trade show technology trends version of the said product. It is the best in its class, something that your customers simply can’t resist notwithstanding its higher price.
Sales experts advise that when you’re trying to sell the Dream version of a particular item, you should put your efforts into educating the target customer about it as much as possible.
This strategy really builds trust and creates that experience with your customers where they feel proud to own something which is the best in its class. The successful application of The Rule of 3 depends on how genuine you are in communicating to the target customer.
3. Don’t Get Carried Away With Price Points
A key point when it comes to upselling is to never lose your sober judgement. For example, the customer who’s willing to shell out one thousand dollars on a suit may also want to pay $500 extra for a made-to-measure one.
On the other hand, there’s little sense in offering a 5,000-dollar blazer to a guy who’s just bought a 50-dollar jacket.
Let me give you another practical example. Airlines only offer more leg room to economy class passengers. Note that they never push them to upgrade to business or first class.
However, a first-class upgrade can be offered to business-class passengers and the chances are that many of them will go for it.
4. Never Forget To Reward Your Customers For The Added Purchase
Giving away a small reward or incentive will certainly increase your upsell conversion rate.
If you want to encourage your customers to spend more money in your retail shop, do not make them haul all of their purchases home like Sherpas.
Instead, offer them free delivery to their doorstep at a convenient time.
If your customer buys a pair of say, some very expensive sunglasses, offer them a free case!
5. Use Round Numbers On Your Price Tags
While ending prices at 9 or 7 does increase the sales for certain products, this tactic doesn’t work very well when you’re upselling. Instead, experts advise to use round numbers for easier comparison.
Final Words
I do hope that the upselling strategies I discussed above will really work for You. Should you have any further questions, do not hesitate to reach out to our experts for extra guidance!
