Most business relationships reach a point that will require that you upsell or deepen your position with your existing customers. Usually, this opportunity presents itself around the end of months 2-3 or at the end of a project. This means that at least once per quarter, you can upsell your clients.
If you are wondering “what is an upsell?” and the process of how to upsell, read on as we explain this simple process that will increase your LTV.
What Is an Upsell?
It is important to understand this concept so that you can fully understand how to upsell clients and existing or even new customers. Upselling is a very common and useful sales technique that you can use to sell more expensive items, services, upgrades, or add-ons to our customers. This allows you to generate more money or revenue and it allows your existing customers to get more services for their money, making it a win-win situation.
Upselling and cross-selling tend to go hand-in-hand as they are both effective sales tactics that your sales rep team can employ to encourage sales.
Why Are Upsells Important?
Here’s what you need to know on why is upselling important.
Now that we’ve answered the question “what is an upsell?”, we will move on to the next logical question. “Why is upselling important?” Obviously, you want your business to continue to grow and be as profitable as it can be. But you also want to take care of your customers. Upsells don’t just make more money for your agency. They introduce your clients to services and packages that can help them.
Upselling can even help you build deeper customer relationships and boost both customer lifetime value and customer loyalty.
A comprehensive upsell strategy will help any existing customer extract the full value that your agency has to offer.
Upselling Is Easier (and More Profitable) Than Selling to New Customers
Upselling to your current customers can help you increase sales and revenue. In addition, it’s much easier than selling to new customers who don’t know you or your services.
Upselling and cross-selling are also more profitable because of the reduced cost of customer acquisition. Your current customers are already familiar with your products and services, so it requires less effort and investment to upsell them.
Knowing how to upsell and cross-sell your loyal customers will help you make the most of your customer base and increase sales without needing to invest too much effort or resources into acquiring new clients.
Sales Techniques for Successful Upselling and Cross-Selling to Generate More Money
Now that you know what is an upsell and why is upselling important, let’s look at some strategies for successful upselling and cross-selling.
1. Take the Time To Understand What Success Means to Them
Always start by understanding your customer’s needs and tailor your upsell to satisfy those needs. Take into account their budget, interests, and other factors that might influence their decision to purchase your upsell. The success of your customers should be at the core of your upsell strategy.
The customer journey should be the real focus of your strategy. This means your sales team should walk your customer through the upselling and cross-selling process and explain why will your customers benefit from the upsell offer.
2. Use Targeted Upselling
Targeted upselling is a great way to increase revenue since it helps you narrow down your offers to customers that are more likely to convert. You can use predictive analytics and customer insights to identify which customers are more likely to purchase an upsell.
Usually, customers search for products related to the ones they already purchased. They also tend to be more likely to purchase higher-priced products if they have a positive customer experience, making them happy customers.
3. Leverage Your Existing Customers’ Relationships
While the initial purchase was a result of a customer’s need for the product and tends to be more difficult, upsells are often driven by relationships. For example, customers who have an existing relationship that was nurtured by your sales team are more likely to purchase an upsell.
By leveraging existing relationships, you can increase customer loyalty and the chances of a successful upsell. Overall, it’s easier to upsell a customer who already has an existing relationship with your company, rather than new other customers.
4. Identify Customers With a Real Need for Additional Services
Your upselling techniques should start with finding the right customers who can be interested in the relevant products and are more likely to make a future purchase, hence boosting sales.
5. Design Upsells That Solve Specific Customer Problems
Both your and your sales rep team’s upsell offer should not only focus on how to increase revenue for your company but also help solve specific customer problems. This will demonstrate that you truly care about your clients by adding more value to the customer’s experience.
6. Set the Agenda
You should set an agenda for every meeting. As simple as that seems, very few agencies prepare an agenda for their client meetings. This is a disservice to you and your client. By setting the agenda, you are showing your client what they can expect from the meeting. This sets a tone that you are in control of the process and it instills confidence in your client.
7. Gauge Your Client’s Perception
It is critical to always know your client’s perception of your partnership and your services, particularly before you attempt to upsell them or re-sign them. You should do this regularly to ensure that your clients remain satisfied and happy. This way, if any concerns arise, you can resolve them right away so that your client isn’t dissatisfied with your agency. If there is a problem, take ownership of falling short.
If you find out that your client is dissatisfied, find out why. Ask them, “What do you need from us to make this a successful partnership?” This way, your client can spell out exactly what you need to do to make them happy. Once you have this information, discuss your new strategy with your client until you agree on how to move forward.
Here is a video explaining this concept.
8. Growth Recap & Projection
The next step in the upsell process is to show your client the progression of your partnership, which include a walkthrough from their first purchase and how you can continue to add value with relevant and closely-related services and offers. This means that you should show them where their business was before they worked with you, where they are now, and where you will take them. Show them a visual that illustrates an upward trend into the future and your strategy moving forward.
9. Time to Sell
When you get to this point, it’s time to upsell, cross-sell, or down-sell your client. No matter what kind of package you have with your client, there are usually ways to increase the amount that your clients spend with you. Figure out what those are and pitch them.
10. Use Product Comparisons To Trigger a Sale
Product comparisons are a powerful way to trigger a sale. People naturally respond positively to visuals and even more so when those visuals accurately convey your message. Create visuals that compare your product to the competition and show why your product is better. Then, explain how the features of your product will benefit their business. This will go a long way in getting your client to say “yes” to the upsell.
You can opt to show your comparisons on your product pricing pages to further convince your customers to boost your upselling efforts.
11. Offer a Special Reward To Ease the Decision-Making Process
Utilizing a special reward like when you offer free gifts, an extended trial period, or even discounts can make the decision-making process easier for your client. People are more likely to say “yes” when they know they’re getting something in return of immense value.
Conduct a few A/B tests to identify what kind of reward your client base responds best to. This way, when you roll out upsells for those clients, you can offer them something special that they’re likely to respond positively to.
Ask for Referrals
You’re at the final step on how to upsell clients. When you get to this point, you should always ask your clients for a referral. Even if your upsell was unsuccessful, your client may be happy to provide a referral for you.
Here is a video on exactly how to ask for a referral.
Work With 8 Figure Agency & Start Expanding Your Wealth Today
8 Figure Agency is an experienced and motivated team that wants to help you take your business to the next level of success. Schedule a free consultation with us today and let us show you how to grow your company’s wealth!
