Thought the second post would be the end of helpful tips? Think again!
We’ve got more marketing tricks to boost your strategy. This time we’re going to show you how you can effortlessly increase your sales through upselling by focusing on a few minor details. Check it out!
What is upselling?
Upselling is a widely used sales strategy in e-commerce that aims to encourage customers to purchase higher priced products, thus increasing the total order value. The upsell item not only comes at a higher price, it also offers higher quality. Users, after all, expect added value when paying more. For comparison, always recommend a product that the user is currently browsing or has already added to their shopping basket. Upselling isn’t always restricted to physical products; it’s a strategy that can also be applied to services. For instance, by offering additional services, you can increase the value of an order.
Are you interested in upselling and want to know more? Check out our article on the subject!
What are the psychological aspects of Upselling?
When considering the implementation of upselling in your store, remember, it’s not just about increasing sales – you should also prioritize the user experience. If you offer you products that are not aligned with their interests or exceed their budget, they may instantly perceive a lack of care on your part.
The quantity of alternative products is also significant. Barry Schwartz, a respected psychologist, extensively researched consumer decision-making behavior and found that an excessive number of choices can be overwhelming, leading to discomfort. Therefore, it’s best to present users with a limited selection of upsell products rather than overwhelming them with options, a phenomenon often referred to as the “paradox of choice”
In the filed of psychology, this topic had shown significant interest, leading other psychologists to conduct their own studies. One notable example is Sheena Iyengar’s ‘jam study’. In the experiment, it involved setting up two booths in a supermarket. One featured 24 different types of jam, while the other had only six. Although, the larger booth attracted more shoppers for sampling, it was the smaller booth that clearly outperformed the larger one when it came to making purchases. Keep this in mind when running your campaigns for a successful upsell.
The checklist for successful upselling
Tip 1: Upsell every user
Remember, it’s not just your existing customers you can upsell to – you can also apply this strategy to new customers. Since their preferences are not yet known, you can, for instance, recommend bestsellers or items on sale with a higher total value. As we discussed in the previous blog post – Offers highlihted with red numbers instantly attract more attention from your customers. It’s also crucial for customers to see the previous price as a reference. Therefore, using strike-through prices in your upselling efforts is a smart approach.
Tip 2: Timing is everything
Timing is key in your customer journey for campaign success. For optimal results, consider using a product detail page or the shopping cart to introduce upsells. This approach ensures that the user has already shown interest in one of your products and is primed for a purchase.
Tip 3: Value-added communication is key
As mentioned earlier, users expect added value when they invest in a higher-priced product. However, if this added value is not immediately apparent, it may lead to users leaving the online store. Therefore, it’s recommended to prominently showcase the advantages of the product, enabling users to promptly understand its value. For products that require further clarification, think about incorporating an explanatory video, a dedicated Q&A section, or a chatbot to promptly address any queries.
Upselling as a sales booster
If you want to increase your sales, upselling is an effective strategy. However, the steps you take to persuade your customers to buy a higher-value product must be carefully considered and planned. When approaching new customers, tact is essential, as an improper approach can easily deter them. Additionally, the psychological aspect of the ‘paradox of choice’ and timing are important factors to consider in your planning.
Once you have given sufficient thought to these key points, there is one final step – testing your strategies. To ensure that upselling in your online store doesn’t backfire, you can utilize A/B or multivariant testing to assess its reception by your visitors.
Interested in leaning more about testing? Our Whitepaper is your go-to resource for more insights!