What Is Upseling And How To Apply It, A Strategy To Improve Business Profits

Upcelling illustration (Photo: Pixabay/bruguswaresolutions)

YOGYAKARTA Upseling is one of the marketing techniques that can increase product sales or services.

This marketing strategy is very common and very effective at increasing business profit.

For more details, let's see what upselling is and how to apply it in the following reviews.

Citing HubSpot, upselling is a marketing technique where a seller encourages consumers to buy more expensive products or services.

An example of implementing an upselling strategy is when you want to buy a new smartphone at a price of IDR 2,500,000, then the seller offers a smartphone bundling package with a new sim card at a price of IDR 2,600,000.

If you accept the seller's offer and finally select a smartphone bundling package with a sim card, it can be said that the seller has succeeded in carrying out an upselling strategy.

Upseling aims to increase transaction value by increasing customer purchases. However, good upseling should still provide significant added value for customers, so they are satisfied with the purchase decision taken.

Thus, the upseling strategy not only brings more profit, but also builds customer engagement.

The way to implement upcelling is as follows:

1. Find out what customers need

Although it can increase business profit, upseling techniques cannot be applied to all customers. This is because some customers may not be compatible with this marketing strategy.

It would be nice if you find out what your customers need so you can consider whether to do upselling or not.

For example, there are customers who want to buy a 4GB smartphone that will be used for communication only. However, you offer a more sophisticated smartphone with 8GB RAM.

It is certain that customers will refuse because they think that they do not really need a smartphone with a larger and more sophisticated RAM capacity. The reason is, the customer's goal is to buy a smartphone just to communicate.

Therefore, before upselling you need to dig up the customer's needs first.

2. Don't force customers

Quoted from the Boldcommerce page, one of the things to keep in mind when implementing an upsellering strategy is improving the customer's shopping experience.

For example, customers have put groceries in the cart. Well, you can slip other products so they are interested in buying them.

However, don't force customers to buy more quality products. This is so that customers don't feel annoyed and still have an instant shopping experience.

3. Give strong reasons

When upselling, the general public, buyers will not be immediately interested or still feel doubtful about the products or services offered.

To overcome these doubts, the seller must convince the buyer by conveying the advantages of the product and its benefits to customers.

Tell prospective buyers that the product already has good and annoying reviews. So that customers can be more sure to buy it.

4. Give a reasonable price

One of the keys to the success of the upseling strategy is related to prices. Indeed, the purpose of this marketing technique is for customers to buy more quality goods at a slightly expensive price. However, the price of the product or service offered must remain reasonable and in accordance with the quality of the product.

For example, there are customers who want to book a hotel room at a price of 350 thousand per night. You can do the upselling by offering a breakfast facility for two people at a price of IDR 425,000. If a customer wants to take the facility, he only needs to add IDR 75,000.

The price for the service is still very affordable, so customers will accept the offer submitted by the seller.

That's information about what upselling is and how to implement it.

Hopefully this article can add insight to the loyal readers of VOI.ID.