Keely Lords
Brand Manager
Ever heard of upselling? You probably have, and want to get better at it.
Here, we’ll provide actionable strategies for maximizing the value of every customer interaction.
You'll learn the key differences between customer upsell and cross-sell, and gain insights on how to present compelling offers, create a win-win scenario, and increase your sales potential.
What is upselling, and why is it important?
Think of it as gently guiding a customer toward a better fit for their needs and budget often with a higher price point. Successful upselling isn’t about pushing something onto the customer – it’s about understanding their desires and presenting them with solutions that truly enhance their experience. You can also call it a refinement or customization of your current arrangement.
Upselling is an essential component of any successful business strategy. Not only is it cheaper and easier to retain and build up your existing customer base than it is to acquire new customers, it’s important for the following reasons:
1. Increased revenue
It’s straightforward – upselling puts more money in your business's pocket. Upselling can boost sales and grow revenue, which means you have more resources to invest back into your business, grow your team, and even reward current customers through special initiatives.
2. Enhanced customer satisfaction
By suggesting more suitable options and solutions, you create product fit with an individual customer. Not only will they feel like they've made a smart choice, but their overall experience with your brand will be elevated.
This builds trust and creates a stronger sense of loyalty, prompting them to continue doing business with you and recommend your offerings to others.
3. Stronger customer relationships
Building relationships through personalized recommendations strengthens customer bonds, positioning your brand as a trusted partner, not just a seller.
Demonstrating a genuine understanding of customer needs transforms the transactional deal into a genuine relationship.
Difference between upselling and cross-selling
While the two terms are often used interchangeably, the difference between upselling and cross-selling is clear:
Upselling opportunities involve encouraging a customer to buy a more premium version of their current selection. For example, if they are interested in a basic T-shirt, you might recommend the premium cotton version or a limited edition design as opposed to a standard version. You’re essentially showcasing a superior version of something they already want.
Cross-selling, on the other hand, involves suggesting a complementary product or service to accompany a customer’s initial choice. For example, when someone purchases a phone case, you could recommend a screen protector or a wireless charging pad. You’re building on that initial purchase by suggesting something that enhances the use and value of what they’re already getting.
Upselling and cross-selling can work in tandem to expand customer spending and boost profitability, and both work as an effective sales technique. However, knowing the difference between the two allows you to target your suggestions more effectively.
You're able to choose between recommending a better version of their initial choice or expanding their product portfolio with something complementary, tailoring your approach to their needs.
How to upsell customers
Here are nine proven sales strategies on how to upsell a customer:
1. Show you understand their needs
Active listening during consultations or calls is essential. But let's delve deeper. Ask questions that encourage the customer to talk about their goals. Think beyond simply asking “what do you need?”. Instead, ask: "Tell me more about what you’re hoping to achieve in using [product or service]. What would make this [product or service] ideal for your specific needs?"
This open-ended style of questioning will reveal more about what the customer desires and values in their experience. Don't be afraid to delve into their frustrations – this is where you truly discover those crucial pain points that provide clues about how you can create a truly relevant solution.
2. Get ahead of the renewal timeline
Proactively address upcoming contract renewals. Don't wait for your customers to think about renewing on their own – make sure they hear from you! Your CRM or marketing automation software can be your ally here.
Use the software to set alerts before a subscription is set to expire or when a contract is due to be renewed. That alert will give you the chance to get in front of the customer before they even think about it. We like to suggest triggering a gift send when you're notified of an upcoming renewal as a positive pre-meeting surprise for the customer.
You might say, "Just a quick reminder – your subscription for [Product or Service] is set to expire on [Date].” These emails open the door to offering a renewed subscription with bonus benefits – your perfect opportunity for upselling. Offer those exclusive add-ons, or upgrade packages that showcase what the customer could be experiencing, making them more invested.
3. Leverage social proof
Social proof is powerful. Customers tend to place higher trust in peer reviews and personal recommendations. When potential customers see other happy users raving about those upgraded features or products, it naturally increases their interest.
Make those customer experiences the focus of your storytelling. Start by sharing reviews and testimonials from customers who have made the switch and clearly outlining the impact of their experience.
Here’s an example of what you might tell a customer: “Jenny, who started on our basic plan, found the project management capabilities on our Pro plan boosted her team’s productivity by 25%. She was amazed to see so many projects come in on time, on budget!”
Use these authentic and quantifiable stories to illustrate the real value proposition you’re presenting. Remember: happy customers make fantastic advocates for your brand.
4. Provide side-by-side comparisons
Your upsell strategy needs to be visually appealing and understandable for customers to make an informed choice. Think about offering visual tools to illustrate the value clearly. Use charts, graphics, or even simple side-by-side tables to show how upgraded options stand out from the basic plan.
Focus on the specifics, especially the “wow” factors. Clearly present the extra features and highlight how each benefit could significantly improve the customer's experience: is it unlimited integrations? Additional support from customer service? Access to an exclusive content library?
Remember, people don’t buy “features,” they buy solutions, and if those solutions make a clear, attractive difference, customers are much more likely to choose the upgrade.
5. Offer choice based on customer preference
Instead of imposing a specific suggestion, offer several options with distinct features, price points, and potential benefits. Let those options stand out, and feel free to nudge the customer in the best direction, while still offering them a choice.
Consider having different bundles, such as a "basic" and "advanced" option. The advanced bundle could include exclusive perks, access to premium content, or expedited services – which you could recommend to customers who seem willing to spend more or desire advanced features.
6. Show suggestions to help with decision making
Guide customers toward premium options by making the decision-making process easy and intuitive. Offer clear comparisons between different versions of your product or service at the selection or checkout stage.
For instance, in your website, you might display a side-by-side comparison that highlights the benefits of upgrading to a more advanced plan, including additional features, better support, or increased capacity.
This doesn’t mean you’re trying to get them to buy the “more expensive option”. Rather, this visual representation helps customers see the real value of the upgrade, nudging them towards a more premium option that may actually be a better fit for their needs.
7. Send a follow-up email with an incentive for the upsell
Creating a sense of urgency can help those hesitant buyers make the decision. A message offering a 15% discount or a free month with an upgrade can provide impetus to hesitant buyers.
Also, FOMO (Fear Of Missing Out) is a real thing. Emphasize a limited time offer like “Try this enhanced experience at a limited-time price.” Put pressure on buyers – but at the same time, don’t scare them away with overly aggressive marketing.
8. Start a referral program
Customer referrals open many opportunities for upselling. If you can have a current customer of your premium product refer the same premium offering (as opposed to the less premium option) to a lead, the new potential customer may automatically be enticed to sign-up for the same level of product. Referrals can actually influence potential clients to consider a premium package over a standard or basic one when they wouldn’t have done so otherwise.
What’s more, you can reward existing customers with a discount or a trial period for a premium-level plan – giving them an opportunity to “try before you buy”. If they like it, they’ll move up as well.
9. Prioritize customer’s future growth
It’s worth repeating – the most effective upsell strategy isn't about aggressive tactics. Instead, prioritize building trust by actively listening and getting to know your customers. This is a long-term play and not necessarily designed for immediate ROI. When you’re building a special partnership with a client, you’re establishing a sense of trust and value.
Customers love it when you actively help them strategize for future growth. Product upgrades and upsells can be inserted in that strategy, so when the time comes for renewal or upgrade, the budget and timeline is already there. The key is to stay invested!
Upselling examples to inspire you
Let’s look at three major companies and how they’ve mastered the art of upselling. You can pick up a lot of upsell ideas from looking at their websites and learning the customer experience via navigating their checkout pages.
1. Disney+
Disney offers a basic TV streaming package with the essentials, but they also showcase premium packages where they package Hulu and ESPN+ as a more pricey option with greater value to the TV watcher.
This strategy allowed them to tap into the substantial subscriber bases of 50 million-plus Hulu users and 15 million-plus ESPN+ users – and gives those subscribers the opportunity to subscribe to one single service rather than subscribe to three separate ones.
2. Amazon
Amazon has mastered the art of personalization via its ecommerce empire. Through recommended items in checkout carts, product recommendations based on browsing history, and tailored upsell options that may in fact be a better option for customers actively looking for a solution, Amazon’s model deftly engages customer needs.
On top of that, Amazon’s website makes it nearly effortless to “add to cart” without friction or interruption. This, no doubt, has contributed to their significant growth as a company.
3. Spotify
Spotify uses a smart upselling tactic to convert free users to premium. Free users can skip a specific number of tracks per hour before being prompted to upgrade, showcasing premium benefits in real-time.
The key to upselling is offering valuable features. Spotify reserves ad-free listening for paid users, highlighting what free users miss out on. Clearly communicating these benefits is crucial.
Unlike many services with multiple pricing tiers, Spotify offers just two: Free and Premium. They also provide free trials, often leading users to automatically transition to the Premium plan when they forget to cancel. This straightforward strategy effectively boosts premium subscriptions.
Upselling – A win-win strategy
Upselling is all about providing extra value and tailored solutions. It’s not about pressure or deceit. Focus on individual needs. Offer thoughtful suggestions. Highlight the true benefits of your offerings.
This way, you can turn current customers into loyal, high-value advocates who appreciate the worth of your products and services. And watch your revenue stream grow.
Learn how gifting through Postal can be effortlessly added to your upselling cadence at scale.
