The Best Retail Upselling Techniques
Upselling is a suggestive selling technique where you recommend a bigger, better or more expensive version of a product to a customer. In retail, upselling can add tremendous value to a customer's purchase while also bringing in much-needed revenue. You need to train employees on the best techniques to ensure things work out well.
The Solution Approach
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Upselling is a perfect fit for a problem-solving approach to retail sales. This approach involves building rapport right away with a customer, asking questions and listening to get a full picture of the customer's situation. The more you know about the buyer's need or problem, the greater the depth you can go into in recommending a solution. An electronics customer looking for a top-of-line television seems a good fit for a surround sound upsell if you sense he wants an all-around amazing entertainment experience.
Build a Bundle
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Upselling is about providing a better, and larger, value to a customer. One way to do this is to increase the economies of scale as a customer increases the purchase. Assume a customer buys a computer for $500. Rather than suggesting additional items a la carte, you might package solutions with the base product that offer a better value. You could include software bundles, anti-virus systems, a printer, USB cables and printer paper, for instance, and offer the bundle for a price that is below the total if each item was added together. You could structure similar packages at different tiers, which simplifies the upsell recommendation for salespeople.
Checkout Upsell
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Some retailers save the upsell until the point at which a customer has emotionally committed to a purchase -- the register. When a customer brings a new camera to the checkout stand, for instance, the sales rep could point to camera bags, memory sticks, tripods and other accessories all in the near vicinity of the checkout. Many electronics retailers offer extended warranties at the point of sale because the customer has already decided to buy, and you can leverage that commitment with a recommendation that they protect the investment.
Follow-up Sales
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In some retail environments, it is appropriate to upsell after the original purchase via the phone, e-mail or through mobile communication. The premise is that by letting a customer have a positive post-purchase experience with a base product, you have them ripe for upgrades and add-ons. Some companies make a more modest sale to let a customer try a service for a month or two and then attempt to sell a higher-tiered service plan once the customer is comfortable.
Writer Bio
Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.